Van Don, Bac Van Phong and Phu Quoc – three special economic zones (SEZs) – are new destinations for large real estate developers.
Doors open wide
Under the draft of the law on special administrative/economic units, one of the business fields to be given preferential treatment is real estate.
Van Don EZ is designed to be a high-quality marine and ecological tourism center, while Phu Quoc will become a resort, entertainment and tourism center, and international trade and shopping center.
As for Bac Van Phong, though it will focus on developing deep water seaports and logistics services to take full advantage of local conditions, service, tourism and entertainment services will also be given priority.
Real estate developers in the three SEZs are listed among the investors to enjoy big incentives in tax, land and customs procedures. The time limit for investors to use land in the SEZs, for example, could be up to 70 years.
In special cases, when investors register very large-scale and important projects, the heads of special administrative/economic units will report to the Prime Minister for a decision.
If the investors get the nod from the Prime Minister, the time use limit could be up to 99 years.
The State will also exempt land and surface water rentals for resort real estate projects which can meet certain requirements.
The projects must be hotels, ecotourism complexes, high-end resorts or cultural tourism centers with investment capital of VND110 billion at minimum.
The required investment capital is VND44 trillion for integrated resort complexes with a casino.
| Real estate developers in the three SEZs are listed among the investors to enjoy big incentives in tax, land and customs procedures. The time limit for investors to use land in the SEZs, for example, could be up to 70 years. |
While Vietnam remains cautious about casino projects, it does not set limitations on casino business in the SEZs.
Great opportunities for real estate developers
According to Le Hoang Chau, chair of the HCMC Real Estate Association, real estate developers have been eyeing the three zones for many years because of the beautiful landscapes and coastline. However, now as SEZs, they have become even more attractive.
“The policies to be applied to SEZs will be stable long-term policies, while all problems to be raised by investors will be settled immediately,” he said.
“What investors are most concerned about now is property ownership duration,” he commented.
Dinh The Hien, a renowned economist, believes that suggested regulations for SEZs will bring big opportunities not only to resort real estate developers, but also to the mid-end and high-end housing market.
To date, investors are mostly developing coastal resorts and villas in Phu Quoc, Bac Van Phong and Van Don.
If the draft law is approved, the three economic zones may see a boom in the housing market.