Vietnam Law has general regulations on the homeownership of foreign entities. Let’s find out this issue with Lawyer X through the following situation: “Dear Lawyer! I want to ask what are regulations on foreign entities eligible for the homeownership in Vietnam? What are forms of the homeownership in Vietnam relating to foreign entities? Thanks for answering my questions!”
Legal grounds
2014 Vietnam Law on Housing
Foreign entities eligible for the homeownership in Vietnam and forms of the homeownership in Vietnam relating to foreign entities
– Foreign entities eligible for the homeownership in Vietnam include:
+ Foreign entities who invest in project-based housing construction in Vietnam as prescribed in 2014 Vietnam Law on Housing and corresponding regulations of law;
+ Foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign-invested funds and branches of foreign banks operating in Vietnam (hereinafter referred to as foreign organizatio+;
+ Foreign individuals who are allowed to enter Vietnam.
– The foreign entities eligible for the homeownership in Vietnam if they:
+ Invest in project-based housing construction in Vietnam as prescribed in 2014 Vietnam Law on Housing and corresponding regulations of law;
+ Buy, rent and purchase, receive, or inherit commercial housing including apartments and separate houses in the project for housing construction, except for areas under management relating to national defense and security as prescribed in regulations of the Government.
Rights of foreign entities as homeowners
– The foreign entity prescribed in Point a Clause 1 Article 159 of 2014 Vietnam Law on Housing is entitled to exercise rights of homeowners as prescribed in Article 10 of 2014 Vietnam Law on Housing, if his/her house is built on a piece of leased land, he/she is only entitled to lease that house.
– The foreign entity prescribed in Point b and c Clause 1 Article 159 of 2014 Vietnam Law on Housing is entitled to exercise rights of homeowners similarly to Vietnam citizens provided that he/she comply with following regulations:
+ He/she may not buy, rent and purchase, receive, inherit and own more than 30% of apartments in an apartment building; or more than 250 houses regarding separate houses including villas, row houses in an area whose population is equivalent to a ward-administrative division.
In case in an area whose population is equivalent to a ward-administrative division has multiple apartment buildings or regarding separate houses in a street, the Government shall provide guidance on number of apartments or number of separate houses that a foreign entity is entitled to buy, rent and purchase, receive, inherit and own;
+ In case the foreign entity receives or inherits house(s) not in accordance with Point b Clause 2 Article 159 of 2014 Vietnam Law on Housing or exceeding the number of houses prescribed in Point a of this Clause, he/she only receives the value of that house(s);
+ The foreign individuals are eligible for the homeownership as agreed in agreements on housing sale, lease purchase, gifting, or inheritance for not more than 50 years, from the day on which they are granted the Certificate and they may be also granted extension as prescribed in regulations of the Government; the duration of the homeownership must be stated in the Certificate.
If a foreign individual marries to a Vietnamese citizen or an oversea Vietnamese, he/she qualifies for stable and long-term homeownership and has all rights of homeowner similarly to Vietnamese citizens;
+ The foreign organization are eligible for the homeownership as agreed in agreements on housing sale, lease purchase, gifting, or inheritance for not longer than duration stated in their Certificate of investment, including extension duration, the duration of the homeownership shall be determined from the day on which the organization is granted the Certificate and stated in such Certificate;
+ Before the time limit of the homeownership prescribed in 2014 Vietnam Law on Housing expires, the homeowner is entitled to gift or sell their house(s) to entities eligible for the homeownership in Vietnam; if not, their house(s) shall be under ownership of the State.
Obligations of foreign entities as homeowners
– The foreign entity prescribed in Point a Clause 1 Article 159 of 2014 Vietnam Law on Housing has obligations of homeowners as prescribed in Article 11 of 2014 Vietnam Law on Housing.
– The foreign entity prescribed in Point b and Point c Clause 1 Article 159 of 2014 Vietnam Law on Housing has obligations of homeowners similarly to Vietnamese citizens provided that he/she comply with following regulations:
+ If the homeowner is a foreign individual, he/she is entitled to lease house(s) for lawful purposes provided that he/she notifies the agency of district in charge of housing where the house is located of housing lease as prescribed in regulations of the Minister of Construction and pays taxes on housing lease as prescribed before leasing houses.
If a foreign individual gets married to a Vietnamese citizen or an oversea Vietnamese, he/she qualifies for stable and long-term homeownership and has all rights of homeowner similarly to Vietnamese citizens;
+ If the homeowner is a foreign organization, its house(s) is/are only provided for their employees but it is not allowed to use their house(s) for lease, offices, or other purposes;
+ They pay off the total amount through credit institutions operating in Vietnam.
Regulations on database of housing
– The database of housing must be formulated and consistently managed from central governments to local governments, which is connected to database and communication system of land.
– The database of housing includes:
+ Database of system of legislative documents on housing;
+ Database of housing development including programs, planning for housing development, investigation, and statistics on housing, basic information about projects on housing construction, number, type of housing, area of housing, area of pieces of land used for housing construction;
+ Database of changes in management and use of housing;
+ Other database relating to housing.
– Every 10 years, the Government shall carry out an investigation, release statistics on housing and take national census population. In the middle of the national census population and housing period, the Government shall carry out an pilot investigation and release statistics on housing on the basis of formulation of policies on housing.
– Basic statistical indicators on housing must be included in national statistical indicator system.
– Funding for investigation and statistics on housing shall be provided by government budget.
Competence and responsibility for formulating communication system and database of housing
– The Ministry of Construction must formulate and manage, develop communication and database of national housing; Ministries, agencies and the People’s Committees of provinces must cooperate in provision of housing database for the Ministry of Construction to update on national housing communication system.
– The People’s Committee of the province must formulate, manage, and develop the communication system and database of local housing, ensure the unified information between housing and land attached to housing.
– The State shall allocate budget to build database and communication system of housing and the operation and maintenance of that system; the Ministry of Construction shall request the Prime Minister to allocate budget to build, manage, operate, and maintain that system.
– The Government shall provide guidance on creation of the database, statistical indicators and the management, operation and development of system of database and communication of housing.
Please see more:
- Instructions for exclusive registration of company logos in Vietnam
- Service of changing the legal representative of Vietnamese enterprises
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Frequently asked questions
No! Only the foreign entity prescribed in Point a Clause 1 Article 159 of 2014 Vietnam Law on Housing is required to have an Investment certificate and have houses which are built under a project as prescribed in 2014 Vietnam Law on Housing and corresponding regulations of law.
No! The foreign entity prescribed in Point b Clause 1 Article 159 of 2014 Vietnam Law on Housing is required to have an Investment certificate or a Permission to run business in Vietnam (hereinafter referred to as Certificate of investment) issued by the competent agency in Vietnam.
The Government provides guidance on documentary evidence for entities or requirements pertaining to foreign entities qualifying for the homeownership in Vietnam.
Conclusion: So the above is Regulations on the homeownership of foreign entities in vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
