After the National Assembly of Vietnam halted passing the draft law on Special Economic Zones, almost all real estate transactions in Van Don and Bac Van Phong froze with investors and estate agents withdrawing from the market.
Enthusiasm for real estate in special economic zones might seem justified when considering the impressive plans, but investors should listen to skeptical voices as well.
In the context of a thriving tourism industry with a rapid growing number of international visitors, the emerge of big casino business service projects owned by Banyan Tree Holdings, Suncity or Las Vegas Sands is one of the crucial strategy to harvest from overseas tourists.
Despite generous investment incentives, formerly-established open economic zones in Vietnam are still ineffective and cannot become a new engine for growth.
Vietnam National Assembly and the Government should carefully review tax incentives in future special economic zones to avoid budget losses and negative socio-economic impacts, according to Nguyen Thu Huong, senior manager of Oxfam.
Local authorities are enforcing orders to temporarily cease the transfer, conversion of land use purpose and modification of land ownership after a dramatic increase in land prices in the future special economic zones (SEZs) such as Van Don, Phu Quoc and Northern Van Phong.
The latest draft law of the special economic zones has been amended based on the opinions of several members of the National Assembly to reduce incentives for several investment projects including casino, tourism and entertainment services.
The land fever in special economic zones may put investors at risks, cause problems for land clearance, and even reduce the appeal of those zones to strategic investors.
There are many updates related to land incentive policies in the latest report of the National Assembly Law Committee on revising the draft law of Special Administrative-Economic Units (SEUs).
Former Deputy Minister of Natural Resources and Environment said that the allocation of land to investors in the special economic zones (SEZs) with a longer period of time will create more valuable real estates.
Publication permit No. 348/GP-BTTTT dated July 19, 2017, granted by the Ministry of Information and Communications of the Socialist Republic of Vietnam
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