Restrictions on foreign home ownership must be determined soon: MoC

Reportedly, MoC has submitted official correspondence to the the Ministry of Defense (MoD), Ministry of Public Security (MPS) and People’s Committees of provinces and centrally-controlled cities on the application of the Housing Law in field of home ownership of foreign individuals and organizations.

Chapter 9 of the Housing Law No. 65/2014/QH13 regulates that foreign individuals and organizations are allowed to buy commercial housing, including apartments and houses in Vietnam or inherit, receive them as presents, except in specifically restricted areas.

Ministry of Construction has asked Ministry of Defense and Ministry of Public Security to specify
areas where foreign home ownership is banned. 

Earlier, Decree No. 99 was released by Government to detail and guide the implementation of some articles in th Housing Law. The decree came into effect on December 10, 2015.  

In particular, Paragraph 2 of Article 75 states that: MPS and MoD are responsible for determining restricted areas in each city and province and notifying respective provincial People’s Committees to guide departments of construction to specify commercial housing projects in areas where foreign ownership of apartments and houses is not permitted.”

However, as reported by cities and provinces, MPS and MoD are yet to specify these restricted areas.

Besides, MoC also asked People’s Committees of provinces and centrally-controlled cities to contact MPS and MoD to seek for guidance and cooperate in implementing the policies and regulations.

Statistics of the Ministry of Natural Resources and Environment revealed, as of the end of 2014, after 6 years since a pilot program allowing foreign home ownership, only 200 foreigners out of 80,000 in Vietnam had bought houses.  

According to a report by the Ho Chi Minh City Real Estate Association (HoREA), during 9 months after the amended Housing Law took effect, 700 foreigners have bought high-class housing in the city. However, the figure is quite modest given that half of all foreigners reside in HCMC.

Source: Vietnam Economic Times