(VOVworld)- Conditions for foreigners in Vietnam to buy and own houses have been loosened under the revised Law on Housing announced by the Presidential Office last week. The new regulations will help Vietnam attract more foreign currencies and stimulate the real estate market.
Under the revised Law on Housing, foreign organizations and individuals that are investing in accommodation building projects in Vietnam; foreign invested companies and their branches and representative offices, foreign investment funds, foreign banks’ representative offices and foreign individuals legally permitted to enter Vietnam are all allowed to buy and own houses in Vietnam.
Stimulating real estate market
Regulations allowing foreigners to buy houses in Vietnam have been piloted over the past five years, but they were so strict that only a few foreigners managed to own houses. The revised Law on Housing expands the subjects and conditions for owning houses in Vietnam for foreign individuals and organizations. Le Hoang Chau is President of Ho Chi Minh City’s Real Estate Association: “The revised Law on Housing creates the most favorable conditions for foreigners to buy and own houses in Vietnam. Under the Law, after immigrating to Vietnam, foreigners are allowed to buy villas, apartments, and semi-detached houses in the projects that the government doesn’t forbid. They are allowed to buy a maximum of 30% of apartments in a building and not more than 250 houses if they buy semi-detached houses or villas in the same ward”.
The 70,000 foreigners working and living in Vietnam creates a big demand for houses. The increasing presence of foreigners in Vietnam is a factor that will help stimulate the real estate market. Doctor Pham Sy Liem is Vice Chairman of the Vietnam Federation of Civil Engineering Associations: “The further opening of the real estate market for foreigners will increase the market supply. Because they are professional investors, they will bring us more experience in real estate business. This will help us fine-tune the market mechanism more quickly”.
Long-term vision
Doctor Le Ba Chi Nhan is a real estate expert: “By just immigrating to Vietnam, foreigners are allowed to buy houses. This is a really favorable condition for them. The new regulations will help promote the cash flow and stimulate the consumption of this special kind of goods”.
Vietnam’s real estate market is attractive. The revisions to the revised Law on Housing will bring about both opportunities and challenges for Vietnamese enterprises. Nguyen Ngoc Thanh is Vice President of the Vietnam Real Estate Association: “The new regulations create new opportunities for investors and demands for the real estate markets. There are certain investment standards as well as regulations of international practices that we have to abide by. These are also challenges for investors”.
Professor Dang Hung Vo, a real estate expert, says that the revisions to the Law on Housing creates great opportunities for the Vietnamese real estate market: “In addition to revising the Law on Housing, we should help foreigners to believe in the stability of the Vietnamese legal system. Foreigners should be aware that that they can have their own houses in Vietnam and are protected by the State”.
The revised Law on Housing will take effect on July 1st, 2015.