Vietnam: a new day has come
In mid-2015, two new policies were introduced by the Vietnamese government that could transform the country’s investment landscape, especially in the recovering housing sector. One is a visa-free, 15-day travel policy for five European nationalities. The other is the reformed Law on Residential Housing (LRH), which removes many restrictions for foreign buyers in real estate, following the government approval in November 2014.
Here, we summarised the six most important things to remember about the change in foreign ownership law in Vietnam’s thriving housing industry, especially concerning the LRH:
1–Foreign individuals who are granted a visa to Vietnam are allowed to buy residential properties in the country.
2–All foreign investment funds, banks, Vietnamese branches and representative offices of overseas companies are eligible to buy.
3–All types of residential sector including condominiums and landed property such as villa and townhouses – previously only applicable to condominiums.
4–There is no limit on the number of dwelling units a foreigner can buy, but the total number of dwelling units owned by foreigners must not exceed 30 percent of the total units in one condominium complex, or not exceed 250 landed property units in one particular administrative (or the equivalent of) ward – previously an eligible foreigner could buy only one condominium in Vietnam.
5–The properties owned by foreigners can be sub-leased, inherited and collateralised – previously only for owner occupying purpose.
6–The tenure allowed to foreign individuals buying homes is a 50-year leasehold with renewal possibility upon expiration, which remains unchanged compared to previously stipulated. Foreign individuals married to Vietnamese citizens are entitled to freehold tenure.
While experts believe that it could take at least one year for foreign buyers to start investing in Vietnam, the implementation of the LHR this July has piqued the interest of many inbound investors – or at least, the news got them talking, which could be helping in bringing in a new era for Vietnam real estate.
Contact: Kevin Vu - Kevinvuproperty@gmail.com