Where are Viet Kieu house-buyers?

High prices and complicated procedures are two main factors that hinder Viet Kieu (overseas Vietnamese) plans to buy houses in Vietnam.

When the Government allowed Viet Kieu to purchase houses in Vietnam, real estate investors rejoiced. They hoped to earn tons from selling houses to Viet Kieu. Now, very few houses have been sold, even though a series of high-end real estate projects have been launched.

Real estate agents report that many Viet Kieu come to explore procedures for buying houses. After investigating the market, many give up their plans because of overly high prices.

Vinh Nghiem, a Viet Kieu in the US, really wants to return to Vietnam, but he still must consider whether or not to purchase a house since they are so expensive.

A real estate developer, who asks to remain anonymous, explained that many Viet Kieu also have financial problems. Owning houses in Vietnam is just a third or even fourth priority for Viet Kieu, especially when they have to spend a lot of money to buy houses in their home countries. To encourage them, he asserted, there should be suitable financial solutions.

Le Hoang Chau, Chair of HCM City Real Estate Association, agreed that not many Viet Kieu have enough money. Chau remarked that the decision to allow Viet Kieu to buy houses in Vietnam only stimulated the market a little.

Chau observed that Viet Kieu, just like other Vietnamese people, must pay tax equal to two percent of the total value or 25 percent of the profit. The tax makes everyone hesitate to purchase or sell houses.

According to Luong Bach Van, Chair of the Liason Association of Overseas Vietnamese in HCM City, the door to Viet Kieu is just half-open.

Under current laws, Viet Kieu can purchase houses without Vietnamese nationality. Yet it is difficult for Viet Kieu born in foreign countries and whose parents have died because they cannot prove their origin. Without such evidence, they cannot purchase houses in Vietnam.

Other analysts note that the Government still does not have a decree to guide implementation of the law.

Sources from the Ministry of Construction stated that they have opened a draft document on the law to collect opinions.

Source: Rol.vn-Vietnam Net

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