Only 70 foreigners buy houses in Vietnam in 2016

11-Nov-2017 Intellasia | Vneconomy | 6:00 AM Print This Post

By the end of 2016, according to reports of localities, only 70 foreigners were able to purchase and own houses in Vietnam. The number of overseas Vietnamese buying houses in Vietnam was 80. This data has recently been released by Ha Quang Hung, deputy director of the Housing Management and Real Estate Market Department under the Ministry of Construction at a press on the first Vietnam Real Estate Forum to be held in November 15th.

Talking to the media on November 8th, Hung said that the policy to allow foreigners to buy houses in Vietnam is a right policy of the National Assembly and the government. Nevertheless, after two years of implementation, this policy is still facing certain difficulties in terms of procedures and paper works, etc.

Along with that, there are fairly strict rules because it relates to security and defense for any country, not just Vietnam.

“Those numbers were reported by localities, and the actual number of foreigners managed to buy houses in Vietnam could be higher”, said Hung.

Talking further about this content, Nguyen Van Phuc, Member of the Standing Committee of Vietnam Real Estate Association, former vice Chair of the National Assembly’s Economic Committee said that permitting foreigners to purchase houses in Vietnam is an inevitable trend for an opening economy like Vietnam. The law of Vietnam should be changed to be appropriate with the international economic integration process.

However, it is true that the number of foreigners buying houses to date has not met the expectation of home buyers as well as real estate investors and firms.

“We are currently preparing to adopt a resolution on the establishment of three special administrative and economic units including Van Don, Bac Van Phong and Phu Quoc. In which, the procedures and regulations on home purchasing by foreigners at these three units will be more relaxing”, said Phuc.

Previously, in late October, at a conference on granting land use right certificates, ownership of houses and assets attached to land for overseas Vietnamese, Hochiminh city Department of Construction said that only 15 foreigners have been allowed to own houses in Vietnam, after two years.

Vice Chair of the Hochiminh city Committee on Overseas Vietnamese Tran Hoa Phong said that the biggest obstacles that hinder foreigners, especially overseas Vietnamese, to own a house in Vietnam is the identification of personal record.

Some other experts believed that the very few number of overseas Vietnamese buying houses in Vietnam is because the revised Law on Real Estate Business limits the number of houses that overseas Vietnamese can own and because very limited number of overseas Vietnamese can pay houses by 100 percent cash and they have to use bank loans. If borrowing foreign banks, they have to prove the private ownership right, but in Vietnam, people only have the land ownership but not private ownership. Thus, the chance to borrow from foreign banks is closed, while local banks are hesitant to offer loans to overseas Vietnamese.

 


Category: Business

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