What are entities eligible for the homeownership in Vietnam?

1. Entities eligible for the homeownership in Vietnam

According to the Law on Housing 2014 of Vietnam, 03 following entities eligible for the homeownership in Vietnam are as follows:

(1) Vietnamese organizations, households or individuals.

(2) Overseas Vietnamese.

(3) Foreign organizations and individuals include:

- Foreign entities who invest in project-based housing construction in Vietnam as prescribed in this Law and corresponding regulations of law;

- Foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign-invested funds and branches of foreign banks operating in Vietnam;

- Foreign individuals who are allowed to enter Vietnam.

2. Entities eligible for the homeownership recognition

According to the Law on Housing 2014 of Vietnam, Article 5 and 74 of the Decree No. 99/2015/NĐ-CP of Vietnam’s Government, in order to be recognized for homeownership in Vietnam, the person who is allowed to own a house must have proof of that, specifically:

(1) Domestic organization, household, or individual

Every domestic organization, household, or individual that applies for the Certificate of rights to use land, ownership of land and property on land must submit ID documents according to regulations on issuance of certificates such as ID card, citizen ID card, birth certificate in case of no ID/citizen ID card.

(2) Vietnamese citizen residing overseas

- An unexpired Vietnamese passport that bears the entry seal of a Vietnam’s immigration authority; or

- An unexpired foreign passport that bears the entry seal of a Vietnam’s immigration authority together with documents proving the Vietnamese nationality or Vietnamese heritage issued by the Department of Justice of a province, an overseas Vietnam’s diplomatic mission, or an authority in charge of management of overseas Vietnamese citizens, or other documents prescribed by Vietnam’s law.

(3) Foreign organization or organization

- A foreign individual must have an unexpired passport bearing the entry seal of Vietnam's immigration authority and not given diplomatic immunity and privileges according to the Ordinance on diplomatic immunity and privileges of diplomatic missions, consular offices, and representative authorities of international organizations in Vietnam.

- A foreign organization must be an entity that:

+ Eligible for the homeownership in Vietnam, including:

• Foreign entities who invest in project-based housing construction in Vietnam;

• Foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign-invested funds and branches of foreign banks operating in Vietnam.

+ Has investment registration certificate or a permission issued by a Vietnam’s competent authority for operation in Vietnam which is still unexpired at the time of housing transaction.

3. Forms of the homeownership in Vietnam

Entities eligible for the homeownership in Vietnam have lawful houses through the following forms:

(1) Domestic organization, household, or individual: through investment in housing construction, purchase, lease purchase, receipt of gift, receipt of inheritance, receipt of capital contribution, or exchange and other transactions prescribed;

(2) Vietnamese citizen residing overseas: through agreements on commercial housing purchase, lease purchase with enterprises or cooperatives conducting real estate trading; agreements on housing purchase, gifting, exchange, inheritance with households or individuals; agreements on residential land transfer in the project on commercial housing construction which is permitted to divide the piece of land into smaller lots/plots for sales as prescribed;

(3) The foreign entities eligible for the homeownership in Vietnam if they:

- Invest in project-based housing construction in Vietnam as prescribed in this Law and corresponding regulations of law;

- Buy, rent and purchase, receive, or inherit commercial housing including apartments and separate houses in the project for housing construction, except for areas under management relating to national defense and security as prescribed in regulations of the Government.

** Areas in which foreign entities may own houses are specified in Article 75 of the Decree No. 99/2015/NĐ-CP of Vietnam’s Government as follows:

Areas in which foreign entities may own houses

1. Foreign entities may only own houses (including apartments and detached houses) of commercial housing construction projects, except for those in areas having national defense and security requirements prescribed by Vietnam’s regulations of law.

2. The Ministry of National Defense and the Ministry of Public Security have the responsibility to specify the areas having national defense and security requirements in each province and send a written notification to the People’s Committee of the province as the basis for directing the provincial Department of Construction to compile a list of commercial housing construction projects whose houses must not be owned by foreign entities.

It can be seen that not everyone has the right to own houses in Vietnam, only organizations and individuals who are permitted by law and meet the prescribed conditions are entitled to have the right to own a house in Vietnam and only in the forms corresponding to each object prescribed by law.

Thuy Tram

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