Danang told to be cautious about Chinese housing purchases

The Danang City Department of Natural Resources and the Environment is asking for a specific mechanism to restrict the housing scale and area that foreigners can lease or buy.

The department’s director Nguyen Dieu said that many transactions transferring large-scale real estate projects in the central city of Danang have been made recently. 

Many of the projects have been taken over by Chinese who later built multi-story buildings to accommodate many people.

Le Viet Truong, deputy chair of the National Security & Defence Committee, emphasized that under the current laws foreigners can buy houses in Vietnam, but with limitations.

In the case of Danang, he said, there would be no problem if Chinese and foreigners take over hotel and restaurant projects and develop projects as initially planned. 

However, it would be ‘abnormal’ if they buy projects and then build villas and houses for accommodation.

Danang would have to join forces with the Ministry of National Defence to check all the projects that have been licensed and transferred recently. 

If they discover that the projects could affect the national defence and operational plan, Danang will have to take back the projects and compensate investors. 

“Danang will not be involved in problems with administrative orders, behavior unsuitable in the context of the international integration,” he said.

Under current laws, in ‘sea border areas’, all activities must comply with strict regulations set by the Ministry of National Defence and the Seaway Law.

Truong believes that Danang can refer to the provision to deal with these cases.

Danang and some other localities, as well as foreign businesses, have at times leased land from local authorities, and then set up fences around the leased land and prevented Vietnamese from passing through the areas.

Analysts have also warned that many foreign investors are attempting to take over real estate projects in coastal areas of Vietnam. The Phoenix project in Khanh Hoa province is a typical example.

Hoang Quang Huy, deputy chair of the Danang Planning and Development Association, noted that Son Tra Peninsula and Ngu Hanh Son in Danang are in a “delicate area’ and any activities of use and land improvement in the area must be approved by the Ministry of National Defence.

Dieu from the city’s Department of Natural Resources and the Environment said it was difficult to control the transactions between Vietnamese and foreigners on real estate project transfers.

“We have suggested setting up restrictions on the real estate areas foreigners can buy or lease in Danang’s coastal areas. The city would report to the government about this,” Dieu said.
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