Proposing to remove difficulties for Resort Real Estate in Vietnam, remove difficulties for Resort Real Estate in Vietnam, Resort Real Estate in Vietnam, Real Estate in Vietnam,

Proposing to remove difficulties for Resort Real Estate in Vietnam

After the announcement of reopening on March 15, the tourism has many opportunities to recover in Vietnam. However, at this time, many resort real estate project investors are still waiting for answers on legal procedures.

Khanh Hoa is one of the localities possessing many precious natural resources. During the period of 2013 to 2017, Khanh Hoa has granted Certificates of land use rights for a number of projects in the North of Cam Ranh peninsula with a part of the area being rural land (not form residential units) to develop resort tourism, enhance its appeal in attracting investment in tourism development.

At that time, enterprises are explained about the type of residential land in the countryside that belongs to one of the three land groups as prescribed in Article 10 of the Land Law – Non-agricultural land. The province sets the condition that tourist residential land must not be registered for household registration, do not form residential areas, villages, in other words, “do not form residential units”. The part of residential land (rural land) is regulated by the Land Law, the buyer is entitled to long-term ownership, is granted a Certificate of land use rights, Certificate of House ownership and other land-attached assets. However, these certifications only serve the purpose of service business and tourism.

As a result, the North of Cam Ranh peninsula tourist area has had more than 40 projects granted Investment Certificates with a total registered capital of over VND 30,000 billion. Many projects have been completed and put into operation.

However, there are still many pressing problems and businesses are affected in terms of reputation and financial losses due to the impact on the resort’s operation. The reason is many current projects such as: The projects Movenpick Resort Cam Ranh, The Arena Cam Ranh, etc., have been completed, had acceptance fire protection and put into use a few years ago and the investor has been granted a Certificate of land use rights. However, secondary investors are still languishing for the issued Land Ownership Certification.

Mr. Nguyen Van Dinh, Vice Chairman of the Vietnam National Real Estate Association (VNRea) admitted that the Government wants to strengthen infrastructure development, increase accommodation facilities and recover tourism after COVID-19. However, the incomplete legal system is the paradox that has frozen the tourism real estate market for the past 2 years. This is also considered one of the twist that are barriers to resort real estate development today.

It is expected that the number of international visitors in the next few years will reach the threshold of 25 – 30 million, an increase of 80% compared to the end of 2019, according to Decision 147/QD-TTg of the Prime Minister Approving the strategy for tourism development in Vietnam to 2030. The Government has also issued Resolution 11/NQ-CP dated January 30, 2022 on the program of socio-economic recovery and development, which promotes economic recovery after the COVID-19 pandemic, from March 15, it will open to international visitors to Vietnam in an effort to restore tourism and resort real estate.

Removing difficulties for resort real estate

According to Mr. Nguyen Van Dinh, currently, in the context of a high inventory rate, many investors are waiting for the Government to make a breakthrough in synchronizing the legal system, especially the amendment of the Land Law 2013 needs to be hastened for tourism real estate to recover. Inconsistency in the implementation of legal policies is becoming a barrier to the development of tourism and resort real estate.

Mr. Dang Hung Vo – Former Deputy Minister of Natural Resources and Environment also said that the legal “bottleneck” is causing the entire tourism real estate market to stall. For example, the story of localities such as Khanh Hoa and Kien Giang. , Binh Dinh, Da Nang, Quang Ninh, Phu Quoc, Phan Thiet (Binh Thuan) and so on promulgate preferential policies to attract businesses to invest and build resort real estate projects on rural land (residential land not forming residential unit) but inconsistent policy implementation. This causes businesses to hesitate to implement projects, investors hesitate to enter and creats a weak investment environment.

According to Mr. Vo, although the term “residential land not forming residential units” is not included in the current regulations. However, in order to open up the real estate market as well as create momentum for tourism development recovery, there is a need for a solution for this type of real estate, the solution is needed to disentangle for this type of real estate.  He expressed his agreement with the opinions of a number of localities proposing the plan: To switch to commercial and service land for projects that have been granted Certificates according to the type of residential land in the countryside (residential land not forming residential units) but construction has not yet commenced; Projects that have been built, completed acceptance and put into use are granted Certificates of land use rights and assets on land according to the current state of residential land in rural areas, long-term use period for secondary investors (customers buying villas, resort apartments).

Proposing to remove difficulties for Resort Real Estate (Picture: cafef.vn)
Proposing to remove difficulties for Resort Real Estate (Picture: cafef.vn)

Mr. Le Hoang Chau – Chairman of Ho Chi Minh City Real Estate Association (Horea) believes that it is necessary to harmonize the interests of the parties as well as to remove difficulties for businesses, to ensure the benefits for secondary investors, and to create a transparent investment environment to address the story of inconsistencies in policy implementation at localities. Localities need to organize a tripartite dialogue between the government – businesses and customers. Therefore, Vietnam can recover its economic sectors (including tourism) after being severely affected by COVID-19.

In order for state agencies and businesses to have a basis for implementation, to avoid protracted lawsuits, affecting the investment environment, businesses as well as buyers, according to some lawyers, it is time to Legislators need to legislate the type of residential land in rural areas, provided that no forming residentual units in specific documents and clear regulations.

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