Changes in the Land Law (amended) will encourage foreign businesses to buy land and invest in building factories in Vietnam. (Photo: TTXVN)
|
In an interview with TTXVN correspondent in Tokyo, Mr. Koizumi Kenichi – a Japanese real estate investment expert, highly appreciates the Land Law (amended) recently passed by the Vietnamese National Assembly earlier this year, which includes a very welcoming change for foreign companies.
According to expert Koizumi Kenichi, many companies from Japan, South Korea, and Taiwan (China) want to expand their operations to Vietnam.
These companies have garment and footwear factories and are all small and medium-sized enterprises, wanting to do long-term business, so they will face difficulties when the cost of land lease and workshop rental is high.
Therefore, he believes that with the changes in ownership rights under Vietnam’s Land Law, there will be more companies considering the direct purchase of land and construction of factories rather than paying land lease fees.
Assessing the impact of this policy on the Vietnamese real estate market, Mr. Koizumi Kenichi believes that with the reform in the Land Law (amended), foreign investors will have a different view of land use rights compared to before.
Especially, if global developers and investors in the US, Europe, and Southeast Asia include Vietnamese real estate in their real estate portfolio, the real estate market in Vietnam may revive.
Furthermore, if individual investors and individuals with strong financial assets can buy land, they can acquire land in resorts in Vietnam, such as Phu Quoc Island.
As a long-term investor in stocks and other assets in Vietnam, Mr. Koizumi Kenichi has positive feedback on Vietnam’s Land Law (amended), believing that this adjustment will significantly improve Vietnam’s investment environment and expand the position of foreign investors.
This expert also mentioned a case in which one of his friends established a joint venture with a Vietnamese person, bought land use rights, built a factory on that land, and operated the factory.
According to him, in the future, Japanese investors may consider directly purchasing land as a Japanese company, in order to be able to operate business activities in the long term././.
Nguyen Tuyen – Xuan Giao
