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/ VNN
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