Q. Why do the Chinese buy houses in Vietnam? Why do they go through the pain of finding a Vietnamese national to buy the house for them just to have a house in Vietnam? Do they have a hidden agenda?A. Foreigners can own houses in Vietnam since July 1, 2024 with the new Housing Law. The caveat is the duration limit of 50 years from the day of being granted the certificate for the first time. It may cost you some money to extend another 50 years.Can foreigner own house in Vietnam?03 Apr, 2017Article 159 Law on housing in Vietnam No 65/2014/QH1 dated November 25, 2024. regulations:Subjects eligible to own Vietnam-based houses and forms of Vietnam-based house ownership of foreign organizations and individualsForeign organizations and individuals that are entitled to own houses in Vietnam include:Foreign organizations and individuals that invest in the construction of houses under projects in Vietnam in accordance with this Law and relevant laws;Foreign-invested enterprises, branches and representative offices of foreign enterprises, foreign investment funds and foreign bank branches that are operating in Vietnam (below collectively referred to as foreign organizations);Foreigners permitted to enter Vietnam.Foreign organizations and individuals are entitled to own houses in the following forms:Investment in the construction of houses under projects in Vietnam in accordance with this Law and relevant laws;Purchase, rent-purchase, receipt of donation or inheritance of commercial houses, including condominium apartments and individual houses under housing investment projects, except those located in national defense and security maintenance areas stipulated by the Government.Related writings:To own house in VietnamLawyer advises about house in VietnamLawyer advises on house in VietnamHousesing ownership by foreigners in VietnamOur website in Vietnamese: www.luatsudms.com.vnSaigon RisingHousing ownership by foreigners in Vietnam21 Oct, 2016Under the Housing Law in Vietnam 2024 takes effect on July 1, 2024 and related guidances, foreign organizations, foreign citizens are only permitted to own:Apartment: Not exceed 30% of the total number of apartments in a building. If in an area with a population equivalent to a ward-level administrative unit which has many buildings for trade, then foreign organizations, foreign individuals are only permitted to own no more than 30% of the total number of each building and no more than 30% of the total number of all buildings in such area.House: If in an area with a population equivalent to a ward-level administrative unit and has projects in investment, construction and trade houses which separate house for trade, or for lease, then foreign organizations, foreign individuals are permitted to own separate house as below:If there is only on project with the number of separate houses is less than 2,500 units then foreign organizations, foreign individuals are permitted to own no more than 10% total number of house in that project.If there is only on project with the number of separate houses equals to 2,500 units then foreign organizations, foreign individuals are permitted to own no more than 250 units in that project.If there are two or more projects with the number separate houses does not exceed 2,500 units then foreign organizations, foreign individuals are permitted to own no more than 10% total number of house in each project.However, at the moment, foreigners remain facing inconvenience in purchasing houses in Vietnam due to insufficient detailed guidances. Hopefully, the situation will soon be improved.Legal basis:Decree No 99/2015/ND-CP, dated 20 October 2024 (Article 75).Law on Housing in Vietnam No 65/2014/QH11 dated November 25, 2014.House ownership of foreigner in Vietnam19 Oct, 2016Duration of house ownership of a foreign individual is no more than 50 years from the day of being granted the certificate for the first time.Prior to expiry of the duration of ownership, foreign individual has the rights to transfer, give, donate his legally own property. Foreign individual owner can perform the above rights himself or authorise a representative to perform those on his behalf.Within three months prior to expiry of house ownship, foreign owner who wishes to extend his ownership must submit an application for extension of house ownership to the provincial people committee.Within 30 days from receiving an application for extension of house ownership, the provincial people committee will consider and respond in writing form about its acceptance for extension of house ownership for the foreign owner, but the extended period will not exceed another 50 years, from the date of expiry of the first Certificate.Based on the acceptance document of the provincial people committee, the local competent authorities will record the extension on the Certificate.Legal basis:Decree No 99/2015/NÄ-CP dated October 20, 2024 (Articles 7 and 77)New property policy lures overseas Vietnamese, foreignersUpdated: 9:36†- 27/08/2015Living in the UK, Hoang has just bought a seaside villa in Ba Ria-Vung Tau southern province at over VND 5 billion (nearly USD 23,000), a price worth to make investment as she said.Hoang told the Vnexpress online the money for the villa, if put on savings in the UK, could earn her a net profit of 1.2 percent per year, much lower than the 8 percent yield in US dollars pledged by the real estate developer for investors in the luxury resort complex. She said she would have to pay much more to own a similar property in the UK while yields were far lower.Semi-detached houses for high-income earners, overseas Vietnamese and foreigners in Xuan Phuong complex, southern Tu Liem district (Hanoi) Photo: Tuan Anh/VNAHoang is one of many overseas Vietnamese returning home to buy property following the entry into force of the revised Housing Law and Law on Real Estate Business last month, which ease real estate ownership and business for foreigners and overseas Vietnamese.On her trip to Phu Quoc island in Tien Giang province, Thuong, an overseas Vietnamese in eastern Europe, registered to buy for a group of overseas Vietnamese seven sea view apartments in a resort on Bai Dai (long beach), one of the most beautiful beaches on the countryâs largest island. Phu Quoc, as a future special economic zone with numerous incentives offered by investors, was a promising investment destination for Vietnamese overseas, she said.Not only sea villas but also apartments in big cities like Ho Chi Minh City and Hanoi are catching the eye of overseas Vietnamese investors. Trung, who has lived in the US for nearly 20 years, last month bought an apartment worth nearly VND 3 billion (over USD 136,000) in Ho Chi Minh City. Trung was pleased with his investment, saying he could either sell the apartment for an immediate profit or lease it for an annual earning of 6 percent.CBRE Vietnam reported hundreds of apartments in Ho Chi Minh City were sold to foreigners right after the Housing Law took effect in July, with Vingroupâs Vinhomes Central Park alone having 112 apartments sold to foreigners. Statistics of real estate developer Novaland showed that overseas Vietnamese made up 10 percent of the companyâs total transactions in July, Vnexpress reported. Another major housing developer in Ho Chi Minh City, Phu My Hung, also reported over 100 successful transactions with foreigners and overseas Vietnamese in the last one month.Da NangTechcomreal General Director Nguyen Xuan Loc was optimistic about sale of property to foreigners and overseas Vietnamese in the near future, saying new housing policies offering overseas Vietnamese equal rights and benefits as for nationals would surely trigger demand from this group of buyers. Loc said the new rules allowing foreigners and overseas Vietnamese to buy homes in the country while requiring bank guarantee for housing sale helped build investors†confidence about the transparency and openness of the domestic market.He also said signs of market recovery plus previous successful investment by overseas Vietnamese from the US and eastern Europe had largely encouraged overseas Vietnamese to make venture at home. Analysts said the revised laws on housing and real estate business have made Vietnamâs property market more attractive, given its reasonable prices. Under the revised Housing Law, overseas Vietnamese now can own an unlimited number of homes like nationals once they have a visa to enter the country.SaigonThe Law largely expands foreigners†ownership right in the country, allowing them to own homes for 50 years if they have an entry visa. Foreign investors of housing construction projects in Vietnam and foreign-invested enterprises and representative offices and branches of foreign traders can also own houses in accordance with law. Under the Law, foreigners can own homes through building according to housing and relevant laws, or by way of purchase, donation or inheritance. However, foreigners are not allowed to own more than 30 percent of apartments in a building or more than 250 separate houses in a ward-level administrative unit.The Ministry of Construction has drafted regulations detailing the Housing Law toward easing administrative procedures for overseas Vietnamese and foreign home owners in Vietnam. The draft regulations, expected to be issued this year, expand the duration for foreigners to own homes in Vietnam to 100 years. Foreign home owners can request extension of their ownership for another 50 years after the 50-year duration expires. Provincial-level Peopleâs Committees would consider licensing such extension at the request of home owners who are required to make an application accompanied by a certified copy of their home certificate.To own a home in Vietnam, an overseas Vietnamese bearing Vietnamese citizenship must have a valid Vietnamese passport, or a paper proving his Vietnamese citizenship if he holds a foreign passport. If he has Vietnamese origin, he must have a foreign passport and a certificate of his origin issued by a competent Vietnamese authority.The draft regulations also specify papers required for foreigners to prove their eligibility to own homes in Vietnam. An individual must have a valid passport bearing an entry certification mark and must not be entitled to diplomatic privileges and immunities. An institution is required to possess a valid investment registration certificate or operation license.Foreigners can only own homes under commercial housing construction projects in areas which are neither prohibited nor restricted from foreigners†residence and travel. These areas will be determined by the Ministry of National Defense and Ministry of Public Security, the draft regulations say.Pending the issuance of these regulations, the Ministry of Construction has issued an official letter providing temporary guidance for the implementation of the two laws. Under this document, home owners, home ownership conditions, number and types of homes and areas to be owned by foreigners follow the 2024 Housing Law while procedures to grant home ownership certificates and land use rights certificates for foreigners comply with the current land law.The number of foreign home buyers remained far below market potential, Cushman & Wakefield Vietnam Director of Valuation and Research Jonathan Tizzard told a seminar on draft decrees detailing the Housing Law and the Law on Real Estate Business last month. By November last year, six years after the country allowed foreigners to buy homes in Vietnam, only 580 overseas Vietnamese and 200 foreigners owned homes in Vietnam, meaning over 80,000 foreign in Vietnam were hiring a home, Vnexpress reported.Tizzard said the legal recognition of foreigners†right to own homes in Vietnam was welcomed by foreign investors who were eager to invest in Vietnamese property market, adding specific guidance was needed to make information transparent, Vnexpress reported.In another development, Ho Chi Minh City Real Estate Association (Horea) has proposed the Government to ease administrative procedures in verifying the origin of overseas Vietnamese home buyers.Horea proposed that an overseas Vietnamese who lost his birth certificate, civil status book, identity card or another paper to prove his origin can use information on his origin given in his current foreign passport or identity card.Horea suggested the civil court have the jurisdiction to issue rulings to legalize these cases. It also proposed the validity of the certificate of Vietnamese origin be permanent instead of five years as currently to reduce administrative procedures.- (VLLF)Tags: overseas Vietnamese , Housing Law , Law on Real Estate BusinessWhy now could be a good time to buy a property in VietnamHo Chi Minh City at night © Gerolamo Auricchio/EyeEmPhu Quoc IslandHalong BayInterContinental Danang Sun Peninsula Resort, where a four-bedroom villa is on sale for $3.28mThree-bedroom villa at Sanctuary Residences in Ho Tram, $385,000Buying guideFrom July last year any foreigner with a valid visa can buy a property in VietnamExpect to pay 10 per cent VAT when buying a property from a developerThe monsoon season in south Vietnam runs from about May to OctoberWhat you can buy for . . .$500,000 A three-bedroom condo in Ho Chi Minh Cityâs central business district$1m A penthouse apartment in central Ho Chi Minh City$2m A seven-bedroom beachfront villa in Da Nang, Vietnamâs third largest cityMore listings at Home | FT Property Listings
