Job Discussion Forums

[ajc19810]

Can foreigners buy land/houses yet? Someone told me the other day that the new law has already been passed.

S/o shed some light please.

[con_qui]

Here is some light for you....

The person who told you that that that law has been passed may be incorrect. What I have been told is 'NO' - Foreigners can not buy land, but they can buy apartments - I guess because the apartment isn't actually on the dirt but in the air.

[Tanker]

Spycatcher knows a lot about these issues, and hopefully will chime in.

Here's is what I've read and been told by those in the know. (I stand to be corrected.)

There were media reports over the last 2 years claiming that Vietnam would allow foreigners to buy land and house, outright.

I think this was all hype, and intentionally put out there to get attention, and attract curiosity as VN compete with neighboring nations for FDI, and other forms of investment and projects.

Also, there are a lot of negative affects of allowing foreigners to buy land and houses.

Currently, from what I've read and been told a foreigner can lease for a period of 99 years, or so.

If a foreigner is married to a local, and the marriage is real and honest, the local spouse can be used to make a deal work, of course. Foreigners should take this option very carefully. If things go south.....you lose. That's the way it works.

[ajc19810]

Before I start mouthing off about how screwed it is that a foreigner can't buy land, is this one of those 'Vietnam things' or do other countries not allow foreigners to buy land as well.
What is the drawback of letting foreigners buy land? Surely the positives would outweigh the negatives for the country or is this (stepping lightly) about foreigners bringing 'social evils' and influencing society too heavily?
Where are they coming from with this?

[spycatcher reincarnated]

Many poorer countries restrict foreigners from buying land and property. Quite rightly the poor countries are scared of rich foreigners coming in and buying up all their prime real estate. For similar reasons there are restrictions in what businesses foreigners can own and operate in Vietnam.

Here is some info on foreign property ownership laws in regional countries:

China: �Generally, only foreigners who have worked or studied in China for at least a year are allowed to buy a home.� http://www.globalpropertyguide.com/Asia/China

Cambodia: �Foreign purchases of property are probably easier in Cambodia than in any other country in IndoChina, Thailand included.� http://www.globalpropertyguide.com/Asia/Cambodia

Thailand: �Foreigners cannot own land in Thailand, but can own condominiums as long as the percentage of units sold to foreigners does not exceed 49%.� http://www.globalpropertyguide.com/Asia/Thailand

Laos: �Foreigners can only lease land, for up to 75 years.� http://www.globalpropertyguide.com/Asia/Laos

Malaysia: �Foreigners can buy residential units and other properties costing MYR250,000 (approx US$74,000) and above, without any restriction on use.� http://www.globalpropertyguide.com/Asia/Malaysia

Indonesia: �Theoretically, foreigners can own condominiums or strata-title residential property. However, a decade after Regulation 41 of 1996, no foreigner has actually received a strata title certificate of ownership.
Though in practice, foreigners receive rolling lease contracts and an assurance that should the situation change they will become titled. Foreigners are likewise not allowed to own land� http://www.globalpropertyguide.com/Asia/Indonesia

Believe the above has established that this is not just a Vietnam thing.

The site also says this:

Vietnam: May 06, 2008 �Under a draft bill, individual foreigners also will soon be allowed to buy apartments. They will be able to buy one apartment only, which they will be able to sell after a year� http://www.globalpropertyguide.com/Asia/Vietnam


Over the years I have seen many a suggestion and even laws suggesting that foreigners can or will be able to buy property in Vietnam. Land is a lot more contentious an issue and one can see that Vietnam is very reticent to allow foreigners to buy land. Officially the State owns all the land in Vietnam and a �freehold� is legally a right to use the land for �a long time� In reality this is a true freehold with all normal freehold rights for the landlord.

Over the years I have seen Vietnamese laws stating:

� General Directors of foreign companies and Chief Representatives of representative offices can buy property.
� Viet kieu can easily buy property (there have been various Vk property ownership laws over the years)
� Foreigners can buy property, but if they leave the country for more than 90 days they will have the property confiscated from them.
� Foreigners with Permanent Residence can buy a primary residence, (PR wasn�t being issued to anyone).

To the best of my knowledge all of the above laws have been either non starters or the decrees etc., that outline the process to actually acquire the property have made it nigh on impossible to actually to do so.

There was a recent law about foreigners owning property, but from memory it was still quite restrictive. I remember the following:

� 5 groups of foreigners would be allowed to buy property. The average foreign employee of a company wouldn�t fall in to any of these 5 categories.
� They would only be able to buy a primary residence and it must be in the city they are working in.
� They wouldn�t be allowed to sell it for at least a year


At present, I regard the above law as a load of trash and won�t believe any of it until I see it being implemented in a sensible way.

Just found this, and have read it, and I still stand by what I wrote above on this law: http://tinquehuong.wordpress.com/2008/05/26/vietnam-to-permit-some-foreigners-to-own-property/ Also the article is not very comprehensive as I definitely remember additional restrictions that are not included in it.


Some foreigners are buying/effectively buying in the following ways:

Putting the property in a Vietnamese spouse�s name: Obvious risks here, but some people mitigate their risk by getting their Vietnamese spouse, to sign a 30 year lease for the foreigner to live in the property free of charge. If you have an argument with your Vietnamese spouse you kick them out and not the other way around. Another ploy is to get your spouse to sign a loan agreement so they are taking a loan from you to buy the property. BTW foreigners can legally own property through the division of assets through divorce, but one should note that even if the judge awards the foreigner property then it is still a very lengthy process to get it transferred to the foreigner�s name if the spouse wants to make it difficult.

Permanent Residence
I believe foreigners with Permanent Residence can buy a primary residence. There are 3 ways to get PR. Two of them are to be a hero of the State and the third is to be married to a Vietnamese citizen. Up until recently it was virtually impossible to get PR, but now I know a couple of foreigners than have got it. Don�t believe either of them has tried to purchase property yet, however.

Long leases on Condos
In reality the only way for considerable numbers of foreigners to buy property so far has been to buy condos. A foreigner can�t officially buy a condo, but they can buy a lease for 50 years (I think this is the duration and believe this can be extended now for up to 70 years) and if the foreigner sells this lease to a Vietnamese citizen then the new owner will get the freehold. Foreigners are happy that this is in effect as good as owning a freehold.

If you are in one of the 5 categories that were mentioned in the new law then you may actually be able to buy a freehold starting in 2009, but I wouldn�t hold your breath. As this only applies to condos I think I would prefer the long lease option that I mentioned above.

Other
There are a few gimmicks that some developers are using such as selling the development as a club and foreigners can buy shares in the club, but these are few and far between.

[Oneonta]

[Mr. Kalgukshi]

If the insults continue (some have been deleted), the thread will not. Responsible parties will receive sanctions of the unpaid vacation variety.

[spycatcher reincarnated]

Maybe Viet kieu will be able to buy property????

Let's wait and see if this ever happens!!

http://www.intellasia.net/news/articles/legal/111249119.shtml

[blateson]

The "rules" in Vietnam as stated above, are a laugh.

"� Foreigners can buy property, but if they leave the country for more than 90 days they will have the property confiscated from them. "

This is the "we can do whatever we want when we want" clause. Or thief clause. It's kinda like that "blank check" issue in an ft.com article a few months back.

[spycatcher reincarnated]