The Ministry of Construction proposes to the Government to unify regulations on housing ownership rights of foreigners not attached to land use rights and supplement the provision that foreigners are allowed to extend the house ownership period once.

The Ministry of Construction states the above recommendation in the report expected to receive and explain the opinions of the National Assembly deputies on the draft Housing Law (amended) just sent to the Government.

According to the Ministry of Construction, regarding the ownership of houses in Vietnam by foreign individuals and organizations, a member of the National Assembly suggested that only individuals and foreign organizations should regulate the ownership of houses in Vietnam not attached to land use rights in the draft revised Housing Law will continue to submit to the National Assembly for comments at the end of this year's session.

Acquiring the opinions of delegates and the National Assembly's Law Committee, the Ministry of Construction proposed to the Government to unify regulations on housing ownership rights of foreigners not associated with land use rights and supplement regulations that foreigners are entitled to a one-time extension of house ownership period.



The Ministry of Construction also proposed that the Government supplement regulations on extending the term of house ownership in Vietnam for foreigners. In addition, the Government stipulates that if a foreigner buys a house in Vietnam and resells it to Vietnamese citizens or overseas Vietnamese, the buyer is entitled to the same rights and obligations as the domestic.

Talking at a recent seminar, Mr. Hoang Hai, Director of the Department of Housing and Real Estate Market Management (Ministry of Construction), said that foreign organizations and individuals have bought and owned houses in Vietnam, mainly concentrated in big cities and provinces such as Hanoi (1,765), Ho Chi Minh City (850), Bac Ninh (110), Binh Duong (210), Ba Ria - Vung Tau (50).

According to Mr. Hai, since the 2014 Housing Law took effect until now, the number of foreign individuals and organizations owning houses in Vietnam has increased significantly.

According to the current Law on Housing, foreigners allowed to own houses in Vietnam include: Foreign organizations and individuals investing in construction of houses under projects in Vietnam following regulations of this law and related laws.

Foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign investment funds and foreign bank branches operating in Vietnam. Foreign individuals are allowed to enter Vietnam.

In addition, the law also mentions that foreigners are only allowed to own houses in Vietnam through one of the following forms: Investing in housing construction projects in Vietnam under this law and other related laws; Purchase, lease-purchase, donation or inheritance of commercial housing, including apartments and separate houses in housing construction investment projects, except for areas ensuring national defense and security as Government prescribed.

According to the regulations, foreigners who want to buy houses in Vietnam can only buy houses (including apartments and separate houses) in investment projects to build commercial houses, except for areas where they are guaranteed defence security.

The law also stipulates that foreigners are not allowed to buy more than 30% of the number of apartments in an apartment building, no more than 10% of the number of projects (villas or individual houses) in the construction investment project or no more than 250 units in a ward administrative unit.

According to the 2013 Land Law, foreigners are not eligible for land allocation, land lease, recognition of land use rights or receipt of land use rights by the State in Vietnam. Therefore, foreigners cannot transfer land use rights (or buy land) in Vietnam.

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