Vietnam opens property market to foreigners
23 December 2007 - As per the Construction Ministry’s property policy draft, six conditions will permit foreigners to own homes in Vietnam.They are:
- Foreigners who directly invest in Vietnam under Vietnamese investment law
- Foreigners who have made contributions to Vietnam and/or have been granted medals and certificates of merit by Vietnamese authorities
- Experts, scientists and skilled workers working in Vietnam who have professional certificates granted by a foreign country
- Foreigners who marry Vietnamese citizens and live in Vietnam
- Foreigners recognized by the Vietnamese President as Vietnamese honorary citizens
- Foreign-invested companies that buy houses to lease to their foreign employees working in Vietnam
To buy property in Vietnam, the above subjects must satisfy the four following conditions:
- To be currently residing in Vietnam, licensed to work in Vietnam at least one year and have documents proving they fulfill one of the aforementioned conditions
- Not an international criminal hunted by Interpol
- That the property in question be for themselves and their family
- Have a certificate granted by the central-level housing management agency of Vietnam (except for those who are honorary citizens or foreign-invested companies)
Overseas Vietnamese who use foreign passports (considered foreigners) and work in Vietnam are allowed to buy property under either the domestic Property Law or the property policy for foreigners.Each subject is allowed to own only property or housing unit (an apartment, a house with a garden or a villa) during the time they live and work in Vietnam which includes a land use permit for up to 50 years (this limit doesn’t apply to honorary Vietnamese citizens or foreign-invested businesses).
After 50 years, the foreign owners must sell or gift the property to others unless they get an extension. They also have the right to sell or give away the property one year after purchase, in case they leave Vietnam.
According to the Construction Ministry, if the average price of a leased apartment is around $800 per month, in five years a foreigner will pay nearly $50,000. If they are allowed to own a house in Vietnam, average price around $70,000, after five years they can re-sell for, worst case, slightly less than the original, but more likely, for a profit.
Around 81,000 foreigners are currently working and living in Vietnam, 16,000 of which meet property purchase requirements. This policy will be applied next year.