House ownership for foreigners in Vietnam: Positive sign from Phu My Hung

A number of foreigners have been able to complete procedures to own condos at Phu My Hung Urban Area since the beginning of 2014.

This is really an optimistic sign for the long-term problematic issue: foreigners are allowed to buy and own residential houses in Vietnam.

126 cases in 5 years

The policy allowing foreigners to buy residential houses in Vietnam is not actually a new issue. In 2008, the National Assembly issued Resolution No.19/2008/QH12 as a pilot plan permitting foreign organizations and individuals to buy and own houses in Vietnam. After five years [2008-2013] of implementing this Resolution, however, the statistics by the Ministry of Construction show that only 126 foreigners were able to buy residential houses. That is a very small number, compared with more than 80,000 foreigners living and working in Vietnam.

The real problem was caused by the strict regulations of Resolution No.19/2008/QH12 like limiting the conditions of foreigners to buy residential houses in Vietnam and restricting the rights of the foreigners as owners of houses in Vietnam (using the houses for the purpose of residence only, not for renting or trading purposes).

Above all, the hardest knot for foreigners over the past five years was the problem of the complicated procedures for buying houses in Vietnam. A lot of foreign experts have lived and worked in Vietnam for a long time and have met the legal conditions, but the complex procedures have made it too difficult for them to buy houses and they have had to live in rented houses.

Over the past five years, the best way for a foreigner to own a residential house is to get married with a Vietnamese citizen. Among the 126 foreigners mentioned above, up to 108 earned the ownership of their houses by marrying Vietnamese citizens.

To solve the problem, the Ministry of Construction made a proposal to the Prime Minister in late 2013 asking for amendments to Resolution No.19/2008/QH12 in an effort to facilitate the procedures for foreigners to purchase residential houses in Vietnam.

While waiting for the Ministry of Construction proposal to be approved, several real estate investors have made their own efforts to provide assistance for their foreign customers to buy houses in Vietnam.

Optimistic sign at Phu My Hung

Phu My Hung Urban Area has been well-known as the most modern urban area with exemplary properties in Vietnam and it has attracted large numbers of foreigners (almost 10 thousands) who have come to live and work there. Previously, the restrictions of Resolution No.19/2008/QH12 caused a lot of difficulties for foreigners who wanted to own condos in this urban area.

To meet the needs of more and more foreigners who want to own condos in Phu My Hung, Phu My Hung Development Corporation has done its best to provide its customers whole-hearted assistance in legal procedures. As a result, several foreign individuals have completed the procedures to get the Certificate of house ownership in this urban area since the beginning of 2014.

Ms. F.B (a French woman who wished to remain anonymous), who has been the first person to get the Certificate of house ownership in Phu My Hung, said, “I’ve worked in Vietnam for 16 years. I want to own a house rather than rend one in this country. I’ve tried to understand the regulations providing for foreigners who want to buy houses in Vietnam. The regulations are very lengthy and complicated. In another country in Europe, it would take me about 2 weeks to buy a house, instead of more than 9 months in Vietnam. At times, I wanted to give up. Fortunately, I got great support when I contacted Phu My Hung Development Corporation. I got clear explanations and consultancy. The company even helped me with most of the required procedures. Now, I’ve received the Certificate of house ownership for my condo in this urban area.”

Mr. Nguyen Buu Hoi, Vice President of Phu My Hung Development Corporation, said, “This is the first house ownership Certificate issued to a foreigner who bought a condo in Phu My Hung. After Ms. F.B, another South Korean customer and a Japanese one will get their house ownership certificates in a few weeks. To meet the increasing needs of foreigners who want to own condos in Phu My Hung, the company’s legal division has completed the legal procedures to provide the best support to customers and make it easiest and quickest for them to own a condo in this urban area.”