Legal confusion – a big “bottleneck” of the resort real estate market
Talking about Vietnam’s tourism and resort real estate market, Mr. Nguyen Van Dinh, Vice Chairman of Vietnam Real Estate Association (VNRea) said that according to Decision 147 of the Prime Minister approving the strategy of tourism development in Vietnam. By 2030, it is expected that the number of international visitors in the next few years will reach 25 million – 30 million, an increase of 80% compared to the end of 2019.
In particular, most recently, the Government issued Resolution 11/NQ-CP dated January 30, 2022 on the Socio-economic Recovery and Development Program, which promotes economic recovery after the Covid-19 epidemic. At the same time, the Government also agreed to open the door to international visitors to Vietnam from March 15 in an effort to restore tourism and resort real estate.
“Although the Government wants to strengthen infrastructure development, increase accommodation facilities, and restore tourism after Covid. However, the weak legal system is becoming a barrier, causing the tourism real estate market to fall. “freezing” for the past 2 years This is the paradox of the market. In the context of high inventory ratio like now, many investors are waiting for the Government to make a breakthrough in the agreement. The legal system, especially the amendment of the 2013 Land Law, needs to be urgently implemented for tourism real estate to recover,” Dinh said.
Referring to the legal weakness for resort real estate, Prof. Dr. Dang Hung Vo – Former Deputy Minister of Natural Resources and Environment frankly admitted that the biggest “bottleneck” of the resort real estate market today is the legal confusion, causing confusion. the entire market stalled. Businesses are hesitant to implement projects, investors are hesitant to enter, creating a weak investment environment.
According to Mr. Vo, stemming from the inconsistent implementation of the policy system, many businesses and investors are suffering. Taking examples from a number of localities such as Khanh Hoa, Kien Giang, Binh Dinh, Da Nang, Quang Ninh, Phu Quoc, Phan Thiet (Binh Thuan)… promulgating preferential policies to attract investment enterprises, building resort real estate projects on rural land (residential land not forming residential units).
At the end of 2017, the resort real estate market was hot, supply and transactions exploded, some provinces allowed the use of the term “residential land without residential units” to issue red books for condotels. shophouses, villas…. However, after that, the implementation of the policy stalled. There are businesses and investors, although they have been granted certificates of land use rights and properties on land, have fulfilled their financial obligations to state management agencies, completed and tested projects. collected fire protection and put it into use for a few years, but customers (secondary investors) are still “tired” of waiting for the red book for villas/tourist apartments.
The inconsistency in policy implementation in localities causes many frustrations and complaints from customers; businesses are affected in terms of reputation, customers suffer financial losses, lose confidence in guidelines and policies issued by some State management agencies.
Deeply discussing this issue, Prof. Dang Hung Vo, former Deputy Minister of the Ministry of Natural Resources and Environment, said that although the term “residential land does not form residential units” is not included in the current regulations, in order to clear and “break the ice” the market also Like keeping trust with investors, we need to open up. Or the project investor has the right to choose, partly production land, partly residential land, production and business land.
“Should a new policy be introduced, stipulating that land for production and business should be paid less by the owner, while the part to be sold to the end user is accepted as residential land, with higher payment. At this point, I agree with the opinions of some localities proposing the option: projects that have been granted certificates according to the type of residential land in the countryside (residential land without forming residential units) but have not The project will be converted to commercial and service land; projects that have been built and completed, tested and put into use will be granted a certificate of land use rights and assets on land according to the current status of residential land in the countryside. , long-term use period for secondary investors (customers buying villas, resort apartments).
We should follow the path of tourism development. Since Vietnam is aspire to become a tourism powerhouse, then it must give preference to this type of real estate “- Mr. Vo expressed his opinion.
Previously, in the year 2019 – 2020, at the Notice of Inspection Conclusion No. 1919/TB-TTCP dated November 4, 2020, the Government Inspector pointed out that “residential land does not form residential units” has not yet been regulated by law. Currently, it is recognized that the type of tourist villas, resort villas, and resort apartments (in Khanh Hoa province called “residential land without forming residential units”) has been promoting remarkably effective in attracting investment capital flows, promoting the speed and scale of tourism and service development; contribute to creating jobs, increasing state budget revenue…
According to some jurists, the Inspector’s conclusion is well-founded. However, it is time for legislators to legislate the type of residential land in rural areas, provided that no housing units are formed in specific documents and clear regulations so that state agencies and businesses have a basis. implementation, avoid causing prolonged lawsuits, affecting the investment environment, businesses as well as buyers.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
