The Ministry of Construction is drafting the Law on Residential Housing (amended) (hereinafter referred to as “Draft”). One of the notable provisions in the Draft is that foreign organizations and individuals (hereinafter referred to as “Foreign entities”) are able to purchase and own residential houses in Vietnam.

Accordingly, the Draft has made the following recommendations:

(i)    Areas where Foreign entities are allowed to acquire and own residential houses in Vietnam: They may own residential houses in the project on commercial residential house construction and the project on residence urban areas, except for projects located in areas that the Ministry of National Defense and the Ministry of Public Security determine to ensure national defense and security.

(ii)    Quantity of apartments owned by Foreign entities:

-    They may purchase, hire purchase, receive as a donation, inherit and own up to 30% of the total quantity of apartments of an apartment building (including mixed-use apartments); 

-    In an area whose population is equivalent to a ward-administrative division (hereinafter referred to as “Area”), where there is more than one apartment buildings for purchase or hire-purchase, they may own up to 30% of the quantity of apartments of each apartment building, and up to 30% of the total quantity of apartments of all such apartment buildings.

(iii)    Except for the case in the Area where there are many commercial residential house construction projects in which Foreign entities already owned a sufficient quantity of separate houses: 

-    In case there is only 01 commercial residential house construction projects in the Area, Foreign entities may own up to 10% of the total quantity of separate houses and up to 250 houses of them;

-    In case there are 02 or more projects in the Area, Foreign entities are only allowed to own up to 10% of the total quantity of separate houses in each project and up to 250 houses in the total quantity of such projects.