Government urged to loosen housing regulations for foreigners
26-04-2013
Foreigners in Vietnam may see a more open real estate market
The government has begun a review of the implementation of National Assembly’s Resolution 19, which addresses ownership rights over the past five years.
The new regulation provided the chance for foreigners who invest, work and live in Vietnam to buy and own real estate.
Even with the change in policy, however, the number of people eligible to own property in the country remained modest, only 427 compared to the estimated 80,000 who live and work in Vietnam.
Most real estate experts agree that Vietnam's current regulations on the matter are strict compared to other highly-populated nations in the region such as Japan and Singapore.
According Credit Suisse, in some Asian countries, recent years have shown a tight relationship between real estate policy and stable economic development. Generally, those countries that applied policy to encourage foreign investment in real estate, including Japan, Singapore, Malaysia and Hong Kong, benefited economically.
Experts said that Vietnam has among the tightest policies of ASEAN nations for foreigners owning real estate.
They proposed that the government allow all foreigners with demand to be able to own property in the country, instead of the current policy that requires them to invest and work in Vietnam or who are married to a national.
Bui Kien Thanh, a financial expert, said that the trend for most countries in the world is to open opportunities for foreigners to buy and own houses, and that Vietnam should follow this trend. He added that it would only invigorate the market.
Deputy Minister of Construction Nguyen Tran Nam said, “Vietnam is fully capable of having similar policies as developed countries. Even if foreigners can own property in Vietnam, this is not an asset that they can bring home with them."
