The Ministry of Construction has submitted a proposal to the prime minister which would allow foreign nationals with visas of three months or more to buy houses in Vietnam.
Around 80% of only 126 cases of foreigners trying to buy land in Vietnam have been individuals wishing to own homes
The proposal was added to the revision of the National Assembly’s Resolution 19/2008/QH12, which is on the 5-year trial period until the end of 2013, on allowing foreign individuals to buy accommodations.
The ministry recommended that foreign investment funds, banks and representatives of foreign companies operating in Vietnam should be permitted to buy and own houses in Vietnam with the exception of diplomatic and non-governmental organisations.
The ministry also recommended that foreign individuals and organisations to be allowed to purchase and own both apartments and detached houses in Vietnam. There was, however, a limit placed on the maximum area of land. Detached houses could be no more than 500 square metres. Prices will also be regulated by the Vietnamese government.
Land-use rights would be restricted to 50 years, with an option extension for another 50 years. They would also be given the opportunity to purchase land-use rights for a period of 70 years, but without the option of extension.
Complex procedures
For many potential buyers, there remain complications. According to the Ministry of Construction, around 80% of only 126 cases of foreigners trying to buy land in the country have been individuals wishing to own homes, the rest consisting of foreign enterprises. The modest figure is partially attributed to high prices and complicated procedures.
According to statistics from the ministry, of the 108 foreign individuals who have thus far succeeded in buying property in the country, the majority were married to Vietnamese citizens (80%), persons involved in direct investment in Vietnam or managers of Vietnamese enterprises (15%), those who have university degrees in any expertise considered vital to the nation's development (5%).
The rest had to be directly approved by the prime minister because they had contributed in some way to Vietnamese society. However, even for this group, a residency permit would be required.
Other restrictions include a ban on foreigners leasing or trading their property. Within 12 months of the expiration of their land use rights foreign owners would have to sell or donate their land holdings.
