Land Law boosts Vietnam’s investment appeal: Japanese expert
Tokyo (VNA) – Koizumi Kenichi, a Japanese
real estate investment expert, has praised the amended Land Law that was
passed by the Vietnamese National Assembly earlier this year, believing that one
specific amendment will be very welcome to foreign companies.
Talking
with Vietnam News Agency correspondents in Tokyo, Koizumi highlighted the ambition of numerous companies
from Japan, the Republic of Korea, and Taiwan (China) seeking to expand operations in Vietnam. They
are mostly small and medium-sized enterprises (SMEs) operating in the apparel
and footwear industries that often face difficulties in securing long-term
leases for land and factories due to high rental costs.
He
said the changes to land ownership rights in Vietnam's Land Law will incentivise
more companies to explore purchasing land and building their own facilities
instead of incurring rental expenses.
According
to him, they will change the way foreign investors view land use rights in
Vietnam. If global developers and investors in the US, Europe and Southeast
Asia incorporate Vietnamese real estate into their property
portfolios, it could lead to a revival in property sales across the country.
Additionally, allowing individual and
high-net-worth investors to purchase land could spark interest in
acquiring property in Vietnamese resort areas, such as those on Phu Quoc island.
As a long-time investor in
stocks and other assets in Vietnam, he said the amended law will significantly
improve Vietnam's investment environment and expand the foothold of foreign
investors.
The Japanese investors may
consider purchasing land directly as corporate entities in the future to ensure
their long-term operations, he said./.