Vietnam Relaxes Foreign Property Rules

Vietnam Foreign Real Estate Rules

First Published Date: June 9, 2015

As Vietnam reaches its 40th anniversary from foreign retreat, it celebrates the historic moment by allowing foreign property ownership and further divulging into capitalism. Starting July 1st, foreigners with a valid residential visa and foreign companies are allowed to buy real estate in Vietnam.

In the past, foreigners married to Vietnamese citizens and foreign companies with special permission were able to buy real estate after going through a complicated government process. Although Vietnam has enjoyed steady economic growth between 5 to 10 percent in the past two decades, its foreign property ownership restriction has frustrated foreign businesses that wanted to acquire properties to expand. The new rules will bring fresh perspectives into the property market and accelerate foreign investments.

Under the new rules, foreigners will be allowed to own 30 percent of condos and 250 independent houses in a ward – an administrative area that can contain thousands of properties leased for 50 years. Many other Asian countries follow similar property rules, as more and more countries are opening up to foreigners and relaxing foreign property rules.

It is expected that there will be a surge of foreign property investors due to the new rules. Ho Chi Minh City and Dan Nang are two major areas of interest due to expat populations and availability of high-end condos and houses.

However, challenges still remain in Vietnam for foreigners to own property, like many other Asian countries. The requirement to have a valid visa and the local bureaucratic procedural cobwebs will still make many foreign investors reluctant to try the waters.