Vietnam’s MOF to Update Finance and Real Estate Regulatory Frameworks
Feb. 28 – Vietnam’s finance and real estate regulatory frameworks are set to undergo changes in the coming months, according to the Ministry of Finance.
New amendments to securities regulations to come into effect in July will allow companies and investors to negotiate investments in terms of cash or assets, contingent upon the mutual approval of contracts and price agreements by both parties.
Circular 226, effective April of this year, will require all securities and fund management firms to submit monthly reports to the State Securities Commission to facilitate inspections and determine suspensions for failing firms.
The Ministry of Construction is considering modifying existing tax structures and market regulations to help home buyers, including enacting changes such as:
- Decreasing capital gains tax on home and apartment sales;
- Offering a higher tax rate to prevent property sales after only one or two years of ownership;
- Cutting VAT and income tax for developers of low-income housing projects;
- Levying higher tax rates on owners of multiple properties;
- Supporting farmers displaced by public works projects with money collected as land-use rights;
- Ensuring better access for consumers to housing market information;
- Giving more attention to residents’ opinions in neighborhoods affected by large construction projects;
- Requiring all property transactions to channel through banks;
- Increasing the regulation of property trading floors.
The Ministry of Finance also expects several other amendments in 2011 to be made to existing regulations, including the operational restructuring of the Hanoi and Ho Chi Minh City stock exchanges to attract more foreign investment.
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