In general, it is not permitted to own land in Vietnam as a private entity because the land belongs to the people and the State of Vietnam thereby operates as the administrator. So when it comes to real estate, what can be purchased? what can the buyer own? As the question would be raised to real estate law firms in Vietnam, we need to go in specific definition when someone wish to invest in real estate in Vietnam need to understand.
You May Have the Right to Land Use Rights in Vietnam?
Ownership of a right to use land is permitted according to Vietnamese Law. This so-called Land Use Right (“LUR”) Certificate provides the means to lease land from the State for Vietnamese and foreign people.
This LUR Certificate entitles the land users to protect their legitimate rights and interests. The sale of a house or real estate is in fact the transfer of the rights for house ownership combined with the transfer of the land use right from the seller.
The right to use land can be directly acquired by different ways that are: lease from the state; sub-lease from a developer of a zone; transfer from another land user; allocation from the state. The legal grounds for Land and House Law of Vietnam are stipulated in the Law on Housing as well as in the Law on Land. The rights and entitlements of holders of house ownership and the holders of the LUR Certificate are settled in this law.
The name of the individual who holds the house ownership shall be written in the house ownership right certificate and his/her rights include for example the rights to posses; use; sell; lease; donate; exchange; lend or to let other people stay temporarily in the house. The one who holds the LUR and house ownership certificate is entitled to exercise the full range of rights over the land/house. As such, land use rights and ownership of assets on the land are combined in the Certificate of Land Use Right and House Ownership Right (LURC).
Can Foreigners Buy Houses in Vietnam?
But the possibilities to acquire land or houses depend on the individual/organization that wishes to do so, because Vietnamese, overseas Vietnamese and Foreigners do not have the same rights.
Especially for foreigners, it was often quite challenging to acquire land or houses in Vietnam. Before the year of 2009, foreigners could not legally acquire property but only could make a joint venture with a Vietnamese company.
But the Resolution No. 19/2008(ND-QH12, effective January 2009, started to entitle foreigners to own houses in Vietnam under the conditions that the foreigner 1) is hired by an enterprise that currently operates in Vietnam and 2) must have at least a temporary residence card to purchase and own an apartment unit in Vietnam.
This five-year piloting program that would end in 2014 is now discussed by the Vietnamese Prime Minister to continue this program after the first five years to support the real estate market and to make it more attractive for foreigners.
After the first 5 years, the government stated to have the plan to review the pilot policy and the Ministry of Construction also opened up for the idea to allow foreigners to buy houses no matter if they work and do business here or if they want to buy real estates in Vietnam.
As the Vietnam’s real estate situation seems to stand before a turning point, it is necessary to keep up to date with all legal changes and developments. Due to the fact that Vietnamese law has special provisions for every organization or individual who wishes to operate with land and real estates related to House Law, it is inevitable to know about this legal circumstances in Vietnam.
How Real Estate Law Firms in Vietnam Could Help?
The real estate law firms in Vietnam could assist in different land and house related projects and matters such as land ownership, house purchase or sale and is aware of the differences between provisions on house law for foreigners and Vietnamese. The professionals could advise clients about possibilities and potential risks concerning real estate laws, housing laws in Vietnam and furthermore could support clients with required procedures with the Vietnamese authorities.
About ANT Lawyers, a Law Firm in Vietnam
We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.
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