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Untie For Foreigners To Buy House In Viet Nam: Still Have To Wait

Over than 2 years since Law of Housing 2014 took an effect (from 1st July 2015), there is just 549 “Red” book given to a foreign organization, a person who bought the house in Viet Nam, it is much less than potential demand from this object.

There are lots of entanglements

According to unofficial statistics, there are over 80.000 foreigners living and working in Viet Nam and over 4 million Overseas Vietnamese who have closely keep in touch with their family in their country. If we can use this quality, this is a potential customer force for realty asset market, because they are people who have a good financial possibility, can afford to take part in every segmentation of realty asset market.

Law of Housing 2014 had many straightforward points to attract this capital to flow in realty asset market. In reality, after Law of Housing 2014 being gone through and taking an effort, the statistics from distributors and investors shows that the quality of foreigners looking for information and asking to buy realty assets in Viet Nam has gradually raised, the quality is more than the other years.

However, from considering to deciding is another thing, because there are many entanglements that make foreigners to “stop”. Hence, there are just 549 “Red” books given to a foreign organization, the person bought the house in Viet Nam after 2 years since Law of Housing 2014 took an effort.

foreigner buy house
The real estate market in Vietnam is attracting buyers and foreign investors.

At a near discussion, Lawyer Nguyen Thanh Ha, Chairman of SBLaw Company said that there are many “restricted area” that people imagine for foreigners buying houses in Viet Nam. Lots of foreigners look for lawyer office to ask for advice about procedures to own houses, but lawyers or advisors take lots of time to solve. When they find the solutions, foreigners don’t have the demand to buy houses anymore.

“For example, the problem of defining the area that needs to ensure military and security or the situation of foreigners have demanded to sell their own houses, the buyers of that houses will be owned in how long?

If the buyers are foreigners or Overseas Vietnamese, the using time of those houses will be 50 years or the rest of the time of the former owners. If the buyers are Vietnamese people, will they be used those houses forever or not?… These are the problem that Law of Housing 2014 and introducing paper haven’t solved yet”, said by Mr. Ha.

According to Mr. Ha, there is one entanglement that Law of Housing 2014 set the subjects who be owned housed in Viet Nam including Overseas Vietnamese and foreign organization, person. However, Law of Housing 2013 didn’t set foreign person to be a land user, Decree 99/2015 which is instead for Decree 51/2015 doesn’t set any rules about the land user of foreign person in case he own the house

Adding more information for Mr. Ha, Mr. Greg Ohan, CEO of JLL Viet Nam said that, in the lucky situation, foreigners can find buyers to transfer the apartment, foreigners have to do many procedures to complete this trading.

Firstly, they have to do a confirming paper about their marriage status which was notarized and translated at the register office in their country. Next, once again they have to notarize, translate in Vietnamese in local notary office. This takes lots of time and they have to pay an amount of fee.

“Things don’t stop there, they have to prepare a “deposit contract” and “trading contract”, and definitely both contracts have to be notarized and signed by both sides, including investor. There won’t have a model contract, so they have to prepare for themselves or find an advisor for advice. Then, these contracts have to be translated, signed, had awareness in Vietnamese by a notary. When completing a trade, they have to pay tax over a value of the product”, said by Mr. Ohan.

Furthermore, according to Mr. Ohan, when they finish all these above procedures, the only way to take investing money back to their country is that they have to go through the international bank, but foreigners have to give them all above documents. Just after finishing that thing, the bank allows them to take money. Besides, they have to pay an amount of fee for the investor to complete the transferring.

Still Have To Wait

To take-down entanglements, to create chances for foreigners to buy houses in Viet Nam, on May, 2017, Ministry of Construction had documentary to sent to People Committee of provinces, cities belonging to The Central about buying and owning houses of foreigners said that Department of Construction clearly define the exact list of project that investing to build commercial house in the area which now allows foreign organization, person to own house and it has to be clear.

foreigner buy house
The number of foreigners looking for information and buying real estate in Vietnam has increased significantly, even in the number of years ago combined.

“Department of Construction together with relevant offices hurry to conduct some contents to create convenient chances for the foreign organization, person to buy and own house in Viet Nam”, clearly said in the documentary.

Ministry of Construction also ask local area to follow the content of Documentary number 10328/BQP-TM on 19th October, 2016 of Ministry of Defense and Documentary number 786/BCA/TCAN on 19th April, 2017 of Ministry of Public Security, together with Police and Military Command of provinces, cities belonging to The Central to exactly define areas that need to ensure the security, military at local area. The list of projects that are invested to build commercial house located in the area that doesn’t allow the foreign organization, person to own house has to be clearly defined.

In the middle of July, 2017, People Committee of Ho Chi Minh City has documentary to sent to Department of Natural Resources and Environment, Department of Construction, Department of Justice, Department of Planning and Architecture, together with High Command of Ho Chi Minh City and Public Security of Ho Chi Minh City to reorganize the working of solving procedures to sent certificate for foreign organization, person who buy house in the area oh city.

According to that, People Committee of Ho Chi Minh City complaints ministers of relevant units to slowly conduct guidelines of People Committee of City about defining areas that need to ensure security, military and don’t allow the foreign organization, person to own house. This makes a slow in solving procedures to the sent certificate for a foreign organization, a person who buy house in the area of the city.

To solve this slow situation, People Committee of Ho Chi Minh City let CEO of Department of Construction quickly host, work together with Department of Justice, Department of Natural Resources and Environment, Department of Planning and Architecture, High Command of Ho Chi Minh City and Publish Security of Ho Chi Minh City to conduct following the rules of Ministry of Defense, Ministry of Publish Security and other guidelines that is relevant to define the area which need to ensure security, military in City.

CEO of Department of Construction is also let to quickly define the exact list of projects that are invested to build commercial houses in City which allows a foreign organization, person to own house. This list has to be publicly announced in a website of Department of Constrict, to make basic information for the person, the organization to know and to make a basic law for Department of Natural Resources and Environment to give the “Red” book for foreign organization, person who buy house in the area of City.

However, there is just Ho Chi Minh City that considers to pushing this work, but in reality, other local areas haven’t been responded yet, especially in Ha Noi City. Hence, the story about how to push foreigners, Overseas Vietnamese to buy more houses in Viet Nam still has to wait.

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Untie For Foreigners To Buy House In Viet Nam: Still Have To Wait
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