Ministry proposes allowing foreigners to buy, own houses in Vietnam

Illustrative image (Photo source: Hanoi Melody Residences)

Hanoi - The Ministry of Construction has proposed the Government allow foreigners to buy and own houses in Vietnam in the draft Housing Law (amended).

However, in the draft law, expected to be submitted to the National Assembly for consideration and discussion at its 5th session in May and approval at its 6th session, foreigners are not permitted to own houses associated with land use rights.

The ministry also proposed the abolishment of regulations on a fixed term of apartment ownership in the draft law, and the supplementation of regulations related to the term of use and the demolition of old apartment buildings.

It stressed the need to clarify responsibilities of relevant parties in the demolition, renovation and reconstruction of apartment buildings.

According to experts, the regulations on the apartment ownership term should not be included, because it greatly affects the interests of people and the operations of real estate businesses and the market.

Regarding social housing, the draft law removes the requirement that 20% of the land areas of investment projects to build commercial houses and urban areas must be used for social housing construction. The draft law stipulates additional authority of the provincial People’s Committees in using the money to invest in the construction of social housing projects for sale, lease, or lease purchase and housing for workers to rent in the area.

In the real estate market, social housing is currently one of the segments of special interest. Statistics from the Ministry of Construction show that the country has completed 301 social housing projects with 155,800 apartments in urban areas. Currently, 401 projects with 454,360 apartments are underway.

Fixing land use rights for foreigners Adding the provision that foreign individuals would be allowed to use residential land in Vietnam to the revised Law on Land could ensure uniformity and better consistency in the country’s current legal system.

Eight more housing projects in Hanoi can be owned by foreigners Hanoi’s Department of Construction recently announced foreign organisations and individuals can now own eight more housing projects.

Land law considerations for foreigners With the implementation of the Law on Land, many foreign businesses have encountered multiple challenges related to real estate while investing in Vietnam, Pham Duy Khuong, managing director of ASL Law, explains why the country must remove these issues as soon as possible to keep Vietnam attractive.