Foreign organizations and individuals can now own houses in Vietnam after the Amended Law on Houses was approved by the Congress in the afternoon of November 25th, 2014.

 

The Congress is approving the article which allows foreign organizations and individuals to own houses in Vietnam. ảnh TG (photographed by TG)

 

According to Article 159 of this Law, foreign organizations and individuals who can own houses in Vietnam include 03 categories:

 

1. Foreign organizations and individuals who invest into housing project(s) in Vietnam in compliance with this Law and other relevant Laws;

 

2. Foreign owned enterprises; branches or representative offices of foreign companies, investment funds, and financial institues that are operating in Vietnam (generally referred herein as foreign organization);

 

3. Foreigners with legal visa issued by Vietnam.

 

Additionally, Article 159 also stipulates that foreign organizations and individuals can owns houses in Vietnam via the following methods:

 

a) Investing into housing project(s) in Vietnam in compliance with this Law and other relevant Laws;

 

b) Purchasing, renting, receiving or giving as gift, inheriting commercial houses, including apartment units and separate houses, or building houses on the land which is allocated inside the housing project area except for the homeland security and safety zone as stipulated by the Government.

 

The Article 159 which allows foreign organization and individuals to own houses in Vietnam used to raise some controvery. During the discussion on this bill, stricter regulations on conditions for owning houses by foreign organization and individuals were demanded due to homeland security, according to Mr. Phan Trung Ly - Chairman of the Legistration Committee of the Congress. 

 

Even though the Congress has approved this bill, 28 representatives vetoed and 04 did not vote in the total of 404 at the conference.

 

Abundant opportunities for real-estate market

 

Allowing foreign organization and individuals to own houses in Vietnam will provide more comfort towards their lifes as well as pushing the stagnant real-estate market which has been rocking bottom for years.

 

Mr. Le Hoang Chau, Chairman of HCM Real-estate Association (HoREA), openly letting foreigners purchase houses is door-to-door exporting activity itself, which will consequently increase total national assets. This movement will also pave the path for the development of other sectors and create jobs for labor market.

 

Besides, this regime will push the demand of real-estate market, specifically the secondary one where buying and re-selling take place, and, s the result, such market will be dynamic. Mr. Le Hoang Chau also said that facilitating foreigners in pruchasing houses will not create any negative impacts to the segment which is for low-to-average income buyers as many have been concerned.

 

Mr. Nguyen Vinh Tran, General Director of Nam Long Investment JSC, totally agreed with the decision of the Congress on opening doors to home purchase for foreigners. According to him, many Vietnamese originated foreigners who have been away from their homeland for 30-40 years have been longing to return to their root to enjoy the life as getting older. However, the house purchasing procedure has blocked them from realizing such dream. As one of the members in this group and having worked in Vietnam for 10 years, Mr. Nguyen Vinh Tran is still renting places to live. Thus, he has high hope that he will be able to own a house in Vietnam.

 

Mr Ho Ba Tinh, an economics expert, assessed that facilitating foreigners to own houses is an essential trend in this global integration, especially at the threshold of upcoming commercial “playground” integration. Also, Mr. Ho Ba Tinh assured that the real-estate market would not be corrupted by foreigners.

 

Tư Hoàng - Mạnh Tùng (TBKTSG)