Debate over a proposal to allow foreign credit institutions in Vietnam to back real estate mortgages is intensifying.
National Assembly members are weighing the costs and benefits of creating a new channel for foreign capital. Accordingly, under the draft amended Land Law, land users are allowed to mortgage their land-use rights or the properties developed on the land at foreign credit institutions in Vietnam.
The existing Land Law does not allow such a kind of mortgages. This restriction narrows the ability to mobilise foreign capital into the country.