About Vietnam Property

Vietnam provides a vibrant backdrop for real estate investment as a dynamic and rapidly developing nation. The potential for Vietnam real estate appreciation is bolstered by strong economic fundamentals such as rising GDP, growing population, and largescale infrastructure improvements. The key cities in Vietnam are Ho Chi Minh City, Hanoi and Danang.

Potential investors can choose to invest for any of the following reasons:

• As a primary or secondary residence
• As a strong source of rental income with high rental yield potential
• As a vacation property
• For capital appreciation

INDIVIDUALS

All foreigners who are granted permission to enter Vietnam are allowed to buy and own residential properties within a property development project in the country (with the exception of foreigners entitled to diplomatic or consular immunities and privileges prescribed by law).

ENTITIES

All legal entities like foreign investment funds, banks, Vietnamese branches and representative offices of overseas companies which are established in Vietnam are eligible to buy.

TYPES

The new Residential Housing Law allows the eligible foreign entity and individual to buy and own all residential sectors including apartments and landed properties such as villas and townhouses (previously only applicable to apartments).

VOLUME

The rule of 30% cap for Condominiums, and 10% cap for Villas/Townhouses (previously an eligible foreigner could buy only one apartment in Vietnam).

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PURPOSE OF PURCHASE

The properties owned by foreigners can be sold, sub-leased, inherited and collateralized (previously only for owner occupying purpose).

• Foreign organization and individual ownership of units in an apartment building may not exceed 30% of total units in one apartment building. In the event of an area with geographical boundary equivalent to ward level with many apartment buildings for sale or lease purchase, then foreign organizations and individuals may own no more than 30% of the total units of each apartment building, and, not more than 30% of the total units of all the apartment buildings.
• For housing projects which have separate houses for sale or lease purchase, the foreign organizations and individuals’ ownership must not exceed 10% of the total number of separate houses for each project. In the event of an area with geographical boundary equivalent to ward level with several projects where the number of individual houses are more than 2,500 units, then the foreign organizations and individuals’ ownership must not exceed 250 units.

NEW HOUSING DECREE 99

Under the new Housing Decree 99 issued on 20 October 2015, foreigners may apply for renewal of up to maximum of additional 50 years, for a total ownership period of up to 100 years. Selling the unit to those permitted to own residential property in Vietnam:

• If to Vietnamese national or overseas Vietnamese individual, such buyer will be entitled to freehold tenure.
• If to a foreign individual, such buyer will be entitled to remainder period of foreign ownership and any renewal right.

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TENURE

The tenure allowed to foreign individuals buying homes is 50 years from the date the authority issues the house ownership certificate to the relevant owner with renewal possibility upon expiration. Foreign individuals married to Vietnamese citizens are entitled to freehold tenure. Eligible foreign entities shall have the tenure of ownership of apartment/house in accordance with the duration as stated in their business license/investment certificate.