The Investment Law (amended) by the Ministry of Planning and Investment does not encourage offshore investment in real estate.
Offshore investment is an opportunity for Vietnamese real estate enterprises to go to the big sea. Photo: Dinh Son
Concerned about relocation of assets or for long-term residence abroad, potential risks as well as loss of country resources, the Investment Law (amended) of the Ministry of Planning and Investment discourages Offshore investment in real estate.
However, experts and businesses said that this restriction goes against the market and is not necessary.
Bring foreign currencies, partners back to Vietnam
Mr. Nguyen Vu Bao Hoang, General Director of Thuduc House Company, who is investing real estate in foreign countries, thinks that investing abroad, including real estate field, is normal in the market mechanism. The school is in general because this is a business opportunity, an opportunity for business development. It is important to make formal investment, through the management processes and laws of our state and in accordance with the laws of the host country. When returning or collecting foreign investment items, tax and financial obligations must be clearly stated to the authorities, especially the tax industry. “When investing abroad, we not only bring domestic money to invest, but sometimes bring back other partners to associate with and invest in reverse in Vietnam, bringing foreign currencies back to the country. Typically at Thu duc House in all business areas, there are joint ventures, associating with foreign businesses”, Mr. Hoang analyzed.
According to Ms. Nguyen Vu Thien Diem, Chairman of Thien Minh Group's Board of Directors, currently, the real estate market in the country is facing many difficulties, many businesses are also looking for ways to invest abroad, especially the US. Offshore investment has no breakthrough in profit like in Vietnam but the advantage is stability. All countries encourage enterprises and foreigners to invest in their countries, while we restrict also means that the freedom of doing business of domestic enterprises is limited. “If the local law does not prohibit but we prohibit it is causing difficulties for citizens, Vietnamese businesses. Currently Vietnam has joined the WTO, businesses investing abroad also want to be profitable, bring money home, no one wants to do business at a loss, to lose capital. Typically, overseas Vietnamese after years of accumulation, many people also bring foreign currencies to Vietnam for investment. Thien Minh Group is currently doing business in the US quite effectively in the field of real estate. This is also a strength to support Thien Minh domestic business. We only need good tax management, post-inspection is fine, should not cause more difficulties”, Ms. Diem analyzed.
Opportunity to go to the big sea
According to real estate expert Phan Cong Chanh, limiting people and businesses investing abroad in the field of real estate is a step back in the integration process and affects the freedom of doing business and owning houses. people abroad. In fact, only enterprises that have domestic potential dare to invest abroad and reach the sea. As in the case of Hoang Anh Gia Lai Group when investing heavily through Malaysia, Laos, Cambodia... In these countries, not only the enterprise brand but the image of the country are also promoted. Individuals or businesses wishing to settle down or expand their investments abroad are justifiable. Prohibition or restriction will arise as a result of which the control will be more difficult and foreign currencies will be lost more.
“Offshore investment is not a loss of the country's resources because they can bring foreign currencies back to Vietnam because of effective business. This is also an opportunity to show Vietnamese prosperity, showing the deep integration of Vietnam, bringing the image of the country, people and Vietnamese intelligence to the world. But it is also necessary to put in place mechanisms and barriers to limit black credit transfer abroad by the non-quota way. Need to delineate cases for effective management, not general provisions”, Mr. Chanh analyzed.
According to Thanh Nien Online