Door to open wider for foreigners in owning houses in Vietnam

Foreigners may be able to buy and own houses more conveniently in the near future in Vietnam as most of the deputies at the ongoing Vietnam's National Assembly meeting said "yes" with the drafting of expanding subjects and conditions for foreign organizations and individuals to buy and own houses in the country.

Earlier in 2008, the NA had already adopted a resolution on pilot permission for foreign organizations and individuals to buy and own houses in the country, but the conditions set by the resolution are considered too tough.

According to the draft Law on Housing (amended) discussed at the ongoing NA meeting, three foreign subjects are allowed to own houses in Vietnam, including foreign organizations and individuals who invest in building houses under projects in Vietnam according to regulations of Law on Housing and other relevant legal documents; foreign-invested enterprises, branches and representative offices of foreign businesses, foreign investment funds, and branches of foreign banks operating in Vietnam; and foreign individuals who are allowed to enter Vietnam.

The scope of foreign individuals who are able to buy and own houses in Vietnam is wider according to the draft law.

Accordingly, the second and third subjects are allowed to buy or own less than 30 percent of the apartments in a condominium building, local Tuoi Tre (the Youth) online newspaper reported.

These two subjects are also allowed to buy less than 250 villas and attached houses in an area with a population equal to that of a ward-level administrative unit in Vietnam.

Commenting on the draft law, most of NA deputies agreed that the easing of regulations over house ownership for foreigners will lure more foreign capital to the country, as well as contribute to boosting the development of the domestic real estate markets.

Allowing foreign organizations and individuals to buy and own houses in Vietnam is suitable with international integration trend, NA deputy Tran Van Minh said on Tuoi Tre.

"However, if all foreigners who are allowed to enter Vietnam are able to buy houses as stated in the draft law, then the range is too large for management," Minh said.

There should be consideration over the term of length of stay, purposes of entry into Vietnam and of buying and owning houses, Minh added.

Regarding the concern, many deputies said there should be restrictions in specific number of apartments in a condominium as well as number of houses in a resident community purchased or owned by one foreign individual in order to secure national security and defense, as well as to avoid activities of cornering the country's real estate market.

Meanwhile, sharing with Minh, many other NA deputies also require tighter regulations in the length of stay for foreigners in Vietnam who buy and own houses to avoid actions of speculation that would affect the country's housing market.

Deputies also proposed a strict rule in payment methods concerning foreigners' house purchasing. They said payment should be made through credit organizations operating legally in Vietnam.

NA deputy Nguyen Thi Quyet Tam, who is also chairman of the people's council of southern Ho Chi Minh City, said on Vietnam's state-run radio Voice of Vietnam that it is necessary to consider issues of ensuring social security and the rights of foreigners who buy houses.

The opening of the markets for foreigners will help break the ice covering the country's real estate market; however the country should consider strict regulations in long term to prevent speculation, she said.

The Law on Housing (amended) is set to be passed at the ongoing eighth session of the 13th NA convening in Hanoi from Oct. 20 to Nov. 28.