The draft law approved in a meeting chaired by premier Hun Sen was aimed at “attracting investors, facilitating the growth of real estate market, and pushing the development”, a cabinet statement said.

But Information Minister and government spokesman Khieu Kanharith said foreigners will be permitted to own only buildings and apartments, not the land beneath them.

“We will allow foreigners to have ownership of buildings from the first floor up,” he told AFP.

The draft law is expected to be approved by Cambodia’s parliament and senate, and then will be promulgated by King Norodom Sihamoni.

The move comes after the private sector in recent years urged the government to allow foreign ownership of properties such as apartments or factories, saying a liberalised real estate market would spur the economy.

Under the current rules, foreign property investments can only be made through the name of a Cambodian national, and many are unwilling to risk losing their assets to potentially unscrupulous local partners.

The cash-strapped country’s investment law was amended in 2005 to allow foreign ownership of buildings, but the legislation had yet to be implemented and the initiative floundered.

Despite current restrictions, billion-dollar skyscraper projects and sprawling satellite cities promising to radically alter Phnom Penh have bloomed over the past few years.

But many projects have been halted or slowed down as Cambodia has been buffeted by the world financial crisis after several years of double-digit growth fuelled mainly by tourism and garment exports.

The International Monetary Fund in September predicted Cambodia’s economy will contract 2.75 percent this year amid the slowdown.

SOURCE: Asia One

The businesses taking part will build over 1,500 pavilions to promote their investment and development projects in industry, tourism and trade, as well as real estate transaction floors. They have also signed up to promote new products and advanced technologies in housing and urban development.

Deputy Minister of Construction Nguyen Tran Nam, also President of the Vietnam Real Estate Developers’ Association, said at a meeting with participating businesses on July 15 that his ministry will use this opportunity to explain policies on real estate investment and development and social housing programmes.

Before the expo begins, on Sept. 9-13, there will be an international exhibition, Vietbuild 2009, on construction, building materials, housing and interior and exterior design.

This is the largest annual event for the building sector and is expected to draw over 900 domestic and foreign businesses this year, including 153 overseas companies and groups from 22 countries such as the Republic of Korea, Thailand, Japan, the US and France.

As many as 2,200 pavilions will be built to spotlight new products that came out in late 2008 or early 2009, ranging from building materials to interior decoration designs, windows and doors, housing architecture, real estate, electrical appliances, paints and sealants.

Both these events will take place in Ho Chi Minh City.