The revised Land Law in Vietnam now allows Vietnamese citizens living abroad and those of Vietnamese origin residing overseas to own land use rights in Vietnam. This new legal framework, according to the Vietnam Association of Realtors (VARS), will make it easier for Overseas Vietnamese (OVs) to own property in Vietnam, leading to an increase in remittances flowing into the real estate market.
Experts from VARS believe that the new regulations in the Land Law 2024 align with international trends and will have a positive impact on the real estate sector. With billions of dollars in remittances being sent to Vietnam annually, the real estate market is expected to receive a significant boost, especially during a time when the sector is in need of capital.
Deputy Managing Director of Savills Vietnam, Troy Griffiths, stated that the changes in the Land Law will open up more investment opportunities for OVs, bringing in direct investment resources from this group. VARS President, Nguyen Van Dinh, emphasized the importance of remittances in driving demand and growth in the real estate sector in the long term.
To further support OVs in investing in the real estate market, Vietnam should consider providing tax incentives for large-scale projects that benefit the community. It is also crucial to ensure transparency in legal regulations and learn from international experiences in attracting remittances to the market. Real estate businesses are advised to design projects that meet the high standards and construction quality expected by OVs, as well as provide support for OVs in house leasing.
Currently, there are approximately 6 million Vietnamese people living and working in over 130 countries, along with around 650,000 Vietnamese guest workers in 40 countries. Vietnam ranks among the top 10 countries worldwide in terms of remittances received, with the amount reaching nearly 190 billion USD from 1993 to the end of 2022. In 2023 alone, remittances were estimated to be around 16 billion USD, a 32% increase from the previous year. It is estimated that up to 25% of remittances are invested in the real estate market each year.