VietNamNet Bridge – The Ministry of Planning and Investment (MPI) said it has not received
any applications for making outward investments from the Vietnamese businessman
Pham Dinh Nguyen, who won the bid to buy the US smallest town Bufford. This may
put difficulties for Nguyen if he wants to make payment with his money sourced
from Vietnam.
Director
of IDS Pham Dinh Nguyen, who has won the bid to buy Buford town to become the
new mayor of the land, said that he still does not have any concrete business
idea with the newly bought assets. However, he would use the town as a
springboard to expand his business in the US.
Also
according to Nguyen, of the amount of 900,000 dollars he has to pay for the
town, he has just deposited 100,000 dollars he borrowed from the relatives in
the US. The remaining sum of 800,000 dollars needs to be paid within the next
30 days.
However,
it’s still unclear how Nguyen would arrange money to make payment. It would be
difficult for Nguyen to remit money from Vietnam abroad, no matter Nguyen buys
the assets for himself or for his company.
Lawyer
Chu Khang from the Hanoi Law Office said that in case Nguyen buys the land to
serve the company’s business plan, he would have to submit the investment
project to the Ministry of Planning and Investment and seek the approval from
the ministry. After that, he needs to obtain permission from the State Bank of
Vietnam to allow Nguyen to transfer money abroad to implement the project.
The
money remittance must be carried out via banks to ensure the respect to the
Vietnamese and US laws.
However,
a source from the Ministry of Planning and Investment has affirmed that the
ministry has not received any applications relating to the investment in Buford
town in the US.
The
source said that if Nguyen, after obtaining the right to buy the town, his
enterprise shows documents to the state management agencies and follow
necessary procedures on making an outward investment, he would not violate the
laws.
However,
the source said, if Nguyen only has 30 days to make payment, while he still has
not drawn up the investment project, the appraisal and licensing procedures
would be complicated.
In
fact, the fact that Vietnamese citizens possess foreign lands is not a surprise
at all. A lot of Vietnamese people are now the owners of the properties in the
US. However, the Vietnamese buyers have always been facing problems in money
transfer for making payment.
Lawyer
Khang said that Vietnamese laws now only allow individuals to transfer money
abroad to serve their study, healthcare, business trips, tourism, to assist
relatives, or transfer inherited assets. Even in these cases, the sums of money
they can remit abroad would be limited. Especially, they have to submit all
necessary documents to prove their legal purposes.
However,
to date, there has been no regulation on the money remittance for the
investments in the real estate sector.
In
Vietnam, people have become familiar to another remittance channel, an
unofficial way, with which remitters have to pay high fees of 3-4 percent of
the total values. However, analysts believe that this would not be a good
choice, because the US agencies always keep strict supervision on the sources
of money remittance to fight against the money laundering.
If
Nguyen makes payment with the money of the relatives in the US, he would not
have to go through the complicated procedures for the money remittance, the
source from the Ministry of Planning and Investment said.
Alan
Phan, an economist, believes that buying US land is a good choice now, when the
properties in the US now have very attractive prices.
Source:
VnExpress
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