Answer

Question: A year ago, one of my friends working in Vietnam told me that foreigners could only rent houses and were not entitled to buy or inherit or receive houses as gifts in Vietnam. He also told me that the new regulations on this matter might be changed to provide the foreigner with the possibility to own a house in Vietnam. Now I am intending to live in Vietnam and looking for some options for housing. Is there any change in the regulations? Could you tell me something more about this topic?

Answer:

In general, your friend was right since at the time he told you based on the Law on Housing 2005, foreigners were not allowed to own houses for personal use in Vietnam. The foreigners permitted to live in Vietnam for three consecutive months were allowed to rent a house in Vietnam.

However, there have been some significant changes of the regulations on this matter. The National Assembly passed the Resolution No.19/2008/NQ-QH12 dated June 03, 2008 on pilot scheme permitting foreign organizations and individuals to purchase and own residential houses in Vietnam. This Resolution came into force as from January 01, 2009 and would be valid in 5 year therefrom. Recently, the Government has enacted the Decree No. 51/2009/NĐ-CP on June 03, 2009 gilding the implementation of the Resolution.

Under the current regulations, the foreigners’ purchase and ownership of houses in Vietnam are limited by some particular conditions. The entities that are eligible to purchase and own residential houses or apartments in Vietnam must be one of five types that are: (1) A foreign individual executing a direct investment in Vietnam in accordance with the Law on Investment, or who is hired by an enterprise currently operating in Vietnam to hold a managerial position in such enterprise; (2) a foreign individual whose contribution to Vietnam has been rewarded with a decoration or medal from the President of the Socialist Republic of Vietnam; and a foreign individual who has made a special contribution to Vietnam as stipulated in a decision of the Prime Minister of the Government; (3) A foreign individual currently working in the socio-economic sector with a university or higher equivalent qualification and a person with special technical knowledge technical skills which Vietnam requires; (4) A foreign individual married to a Vietnamese citizen; (5) An enterprise with foreign owned capital currently operating in Vietnam without the function of conducting real estate business and which needs residential housing for people working at such enterprise.

Noteworthy, the houses that the foreigner may purchase or own must be the apartments in the commercial housing development project.

A foreign individual is entitled to have one apartment at a time only and the apartment can only be used for residential purpose and can not be used for rent, for office or for other purposes.

The ownership duration of house in Vietnam is limited by fifty years as from the date of issuance of house ownership certificate for a foreign individual and equal to duration as stipulated in the investment certificate for a foreign owned capital enterprise, including duration as extended.