1. Policy on allowing foreign organizations and individuals to own houses in Vietnam
The policy has been promulgated since 2008 in the Resolution No. 19 of the National Assembly. Up to now, the Housing Law 2014 has inherited and supplemented specific provisions for this Policy. Allowing foreign entities to own houses in the country is to create conditions for them to feel secure to live and work in Vietnam. Besides, it is to encourage attracting foreign investment into the Vietnamese market.
However, since the 2014 Housing Law took effect, the number of foreigners buying houses in Vietnam is not much. This shows that the above Policy has not yet brought into full play the effects that it is set out to. Therefore, in the latest Draft Housing Law, provisions to facilitate foreign owners to own houses in Vietnam have been revised and added more contents.
2. Amendments and supplements of the policy will not affect other policies of the State.
The representative of the Ministry of Construction said that the policy of encouraging foreign owners to own houses in Vietnam is in line with the policy of international integration. This will not affect other policies of the State because this policy is still being strictly controlled.
According to the Draft Housing Law, only foreigners who are allowed to enter Vietnam are allowed to own houses. However, the housing ownership conditions of this subject are regulated as follows:
– Only buy houses in commercial housing projects;
– The project must be located in an area that does not affect national security;
– Foreign entities cannot own more than 30% of apartments in a building;
– Foreign entities own no more than 250 individual houses in the project;
– And foreigners are only allowed to own houses for a maximum of 50 years;
3. The need to return to the homeland of “Viet Kieu” is very large
At present, there is a significant influx of “Viet Kieu” individuals who have a strong desire to settle in Vietnam. However, they encounter numerous challenges in purchasing a house, including intricate legal procedures. These difficulties, along with other factors such as high demand for real estate among Vietnamese people living abroad, will make policy amendment the crucial catalyst for attracting substantial capital to fulfill their real estate needs.
Besides, foreigners highly appreciate the real estate market in Vietnam. Once foreign ownership of houses in Vietnam takes place smoothly… then domestic high-end housing products will be stimulated more strongly. Not to mention, creating favorable conditions for foreign owners to own houses is also a solution to attract good and talented foreign workers to Vietnam to “settle down and settle down”.
(Refer to the Securities Investment Newspaper dated June 26, 2023)
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