In a probable move to bring its property ownership laws in line with other countries in the region ahead of the introduction of the ASEAN Economic Community in December 2015, Vietnam is discussing changes to its Housing Law to make it easier for foreigners and Vietnamese expatriates to buy houses in the country.
The number of overseas property buyers in the country is extremely low currently. There are just 126 foreign home buyers, and this can be attributed to the fact that buying is more expensive than renting, according to media reports.
Once foreign nationals own a residence, they are not allowed to sublet the property, and this is thought to be one of the main reasons why foreign buyers have so far avoided buying in Vietnam.
Vietnam’s real estate market is showing signs of recovery, mostly in the mid-range, whereas the high-end sector remains largely stagnant.
Deputy Construction Minister Nguyen Tran Nam told media that introducing foreign capital inflows into the real estate market is seen as an immediate, on-the-spot, export, adding it would make Vietnam a more competitive property destination for foreign nationals.
The expansion of the housing purchase regulations for foreign individuals and organisations has already received public approval.
It is expected to encourage foreign investors to acquire and own houses in Vietnam, attracting investmen as well as contributing to the domestic property market and international integration process.
However, in order to “open” the sector without losing control, regulations must be put in place at all stages, from issuing policy to monitoring implementation, the Minister noted.
Regulations on residency in Vietnam and other legal provisions to prevent speculation and manipulation of the property market, as well as money laundering, will be tightened and a legal
According to the draft law, foreigners, excluding diplomats and those who work for non-governmental organisations, will be allowed to buy and own property in Vietnam once they obtain a work permit.
Foreign invested-enterprises, branches and representative offices of foreign firms, foreign investment funds and foreign banks shall be also entitled to purchase and own houses in Vietnam.
In addition to apartments, foreign individuals and organisations shall be permitted to own villas or townhouses as part of commercial housing development projects where foreigners are not restricted and prohibited to live as stipulated by the Ministries of Defence and Public Security.
The law also notes that foreign individuals shall have the right to own houses for no longer than 50 years from the date of receiving the house ownership certificate. Extensions will be allowed, but must be in compliance with existing laws. Long-term and permanent ownership of houses are subject to foreigners who have conjugal relationship with Vietnamese citizens.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
