Businesses call for clearer regulations on real estate development
Businesses have called on the government to set clear timeframes and regulations governing real estate especially with regard to the construction of high-rise buildings.
Investment in real estate has dropped off in recent years, partly because of the lack of legislation to support its growth compared to the development of other areas of business. Numerous foreign companies have expressed interest in building apartments and condominiums in Laos and in the past, there was a steady increase in the number of high-rise buildings but regulations regarding the industry are hazy.
Other ASEAN countries also have specific regulations concerning the construction and ownership of condominiums. To build trust and credibility among investors, Laos should also have similar regulations on real estate as well.
This issue was raised for discussion during public-private consultative meetings at the 10th and 13th Lao Business Forums. The Department of Natural Resources and Environment completed the revision and promulgation of the revised Land Law at the end of 2020.
The conditions, supporting documents and procedures for the registration of condominium construction land are specified in the revised Land Law in Volume 3, Articles 106-108. The private sector sees these additions as a good step forward in addressing the problem because the construction of condominiums in Laos is now officially supported by law. Therefore, this issue will not be raised at the next Lao Business Forum.
However, there are currently no instructions on the implementation of the revised Land Law. The Lao National Chamber of Commerce and Industry will continue to monitor its implementation with the private sector and will also report any problems to the relevant authorities.
Source: Vientiane Times