The Ministry of Planning and Investment (MPI) has introduced a proposal to grant foreign investors and businesses expanded property rights within the country’s financial centers.

The new policy, which includes extending land-use rights and allowing foreigners to buy and sell real estate, aims to attract global investment. However, concerns have been raised about the potential for speculation and rising property prices.

According to the latest draft of the Resolution on the Establishment and Operation of Financial Centers in Vietnam, the MPI suggests extending land-use rights for projects within these centers up to 70 years, compared to the current standard of 50 years.

The proposal also allows foreign-invested enterprises to mortgage land-use rights and attached assets at Vietnamese banks without restrictions related to land lease payments.

Additionally, foreign companies may use land-use rights as collateral at overseas financial institutions, with legal disputes to be resolved under Vietnamese law. If mortgaged assets are liquidated, the buyer must meet Vietnam’s legal requirements for land transactions.

A key aspect of the proposal is to permit foreigners working and investing in financial centers to buy, lease, receive, or inherit properties within designated housing projects.

The ownership rights and obligations would align with Vietnam’s legal framework for land leases and investments. This would mark a significant shift in real estate regulations, creating new opportunities for foreign investors.

The proposal has sparked concerns from the Ministry of Industry and Trade, which warns that allowing foreigners to purchase property without residing in Vietnam could lead to speculative buying, driving up prices and making housing less accessible for workers in financial centers.

The Ministry of Natural Resources and Environment has also called for a careful review of the proposed land-use policies to ensure they remain consistent with existing regulations.

Meanwhile, the State Bank of Vietnam has urged caution regarding foreign companies using land as collateral for loans at international banks, citing potential financial security risks.

Defending its proposal, the MPI emphasized that many global financial hubs, such as Dubai, Singapore, and Abu Dhabi, have successfully implemented similar policies to attract foreign investors.

The ministry argues that Vietnam needs to adopt progressive real estate regulations that align with international financial centers to remain competitive.

The Ministry of Construction has suggested further clarification on the specific roles and distinctions between Vietnam’s financial centers, whether regional or international, to ensure proper legal oversight.

Despite the concerns, the MPI believes that a unified policy across financial centers will create a more cohesive investment environment. The resolution is still under review and will undergo further adjustments before submission for government approval.

Nguyen Le