A majority of National Assembly deputies on Friday agreed with the draft amendment to the Housing Law and Land Law that proposed more categories of Overseas Vietnamese be made eligible to buy a house in Vietnam.

Current regulations have shown shortcomings and failed to encourage Viet Kieu to return home, said Minister of Construction Nguyen Hong Quan.

He said the demand for housing was real as some Viet Kieu bought houses but had to ask their friends or relatives to hold ownership, or purchased houses without conducting legal procedures.

This has caused losses in tax revenues and disputes over house ownership, he added.

The bill actually proposed an amendment to one article each in the

Housing Law and Land Law which deals with house ownership and land use rights of Viet Kieu.

Vietnam does not technically allow land ownership but grants land-use rights, which confer the same rights as freehold property.

Current regulations allow only certain categories of Viet Kieu to own houses.

These include: individuals with permanent resident status in Vietnam; those doing long-term business in Vietnam; those recognized as contributing to national development; scientists and cultural experts, who want to conduct research in Vietnam for national development; or individuals who have resided in Vietnam for 6 months or more.

The draft amendment broadens the categories to allow any Viet Kieu that has Vietnam citizenship to buy houses here. It would also grant home ownership privileges to Overseas Vietnamese with special skills deemed necessary to meet domestic demands and currently working in Vietnam; those that currently have a Vietnamese visa exemption and permission to reside in Vietnam for 3 months or more; or those having a Vietnamese spouse currently living and having a house here.

During three years after the current Housing Law took effect in 2006, only 140 out of three million Viet Kieu have bought houses in Vietnam. Up to 70 percent of these Viet Kieu have Vietnamese citizenship.

In 2007, 70 percent of $6 billion in remittances from Vietnamese overseas was invested in production and business, including property trading; and 20 percent was used to buy houses in Vietnam under the ownership of their relatives and friends.

A government report on the issue estimates that the number of Overseas Vietnamese buying houses in Vietnam will go up to around 1,400 a year if the draft is approved.

One house issue

The NA session Friday saw heated debate over a proposal that each Viet Kieu is allowed to own only one house or apartment.

The NA Economic Committee, which had appraised the bill, said each Viet Kieu should be allowed to own only one house or apartment in Vietnam to avoid speculation.

However, deputy Pham Thi Loan said the number of houses or flats owned by Vietnamese expatriates should not be limited to one or two.

Their housing trade would be taxed to prevent speculation just like the current regulations for the locals, she said.

Deputy Le Hong Son agreed: “It is unnecessary to regulate the number of houses a Viet Kieu can buy. The number of the houses they own will not affect the property market.”

Several members of the NA Economic Committee suggested that limitations be imposed on the use of housing property and land owned by Overseas Vietnamese.

Minister Quan said the bill proposes two more rights for Viet Kieu over their houses that relate to the land-use right, but this was still two rights less than that afforded to locals.

According to the draft document, Viet Kieu have the right to lease or authorize others to manage the house [and the land it stands on]. However, they are not allowed to use the house as financial contribution or as a valued property in other deals.

However, many deputies said Friday that the right of Overseas Vietnamese to buy houses should not be limited, so that an open environment for property activities is created and that there is equality between them and local residents.

“Vietnamese overseas who are allowed to own a house in Vietnam should have same rights as local people, and have the right to get compensation as the state revokes their land,” deputy Loan said.

Delegate Tran Du Lich said it would be irrational if Viet Kieu would not be compensated if the state claimed their land for construction projects.

The bill is scheduled to be revisited on June 2 and passed on June 18 at this NA session.

Reported by Bao Van