The 2023 Housing Law (the “Law”) comes into force on August 1 this year, which provides house ownership, development, operation management and use; housing transactions; and state management of housing in Vietnam.

According to the Law, there are 3 foreign subjects being allowed to own houses in Vietnam:

1. Foreign-invested economic organizations that invest in building houses under projects in Vietnam and act as housing investment project owners may own houses through implementing housing investment projects in Vietnam.
2. Foreign-invested economic organizations, branches and representative offices of foreign enterprises, foreign investment funds, and foreign bank branches currently operating in Vietnam.
3. Foreign individuals permitted to enter Vietnam.

Those subjects mentioned in points 2 and 3 above may own houses through purchasing or renting with the option to purchase commercial houses of housing investment project owners, receiving houses as donations, or inheriting commercial houses under housing investment projects not in areas subject to national defense and security assurance requirements. They may also own houses through purchasing or renting with the option to purchase houses owned by other foreign organizations and individuals.

For foreign organizations, to own homes in Vietnam, they must possess investment certificates or investment registration certificates or papers permitting their operation or establishment in Vietnam that remain valid at the time of entry into housing transactions, issued by Vietnamese competent state agencies.

For foreign individuals, they must be persons other than those entitled to diplomatic and consular privileges and immunities.

Foreign organizations and individuals are only allowed to purchase, hire-purchase, receive houses as donations, inherit and own no more than 30% of the number of apartments in an apartment building. If they are separate houses including villas and townhouses, in an area with a population equivalent to a ward, they are only allowed to purchase, hire-purchase, receive houses as donations, inherit and own no more than 250 houses.

It should be noted that the Ministry of National Defense and Ministry of Public Security will take charge of notifying areas under the national defense and security assurance requirements to provincial-level People’s Committees for the latter to determine and announce on their portals and on portals of provincial-level housing management agencies the lists of housing investment projects in areas where foreign organizations and individuals are allowed to own houses.