The Vietnam Ministry of Construction has proposed that the Government permit foreigners to buy and own houses in Vietnam in the amended draft Housing Law.
The Ministry has submitted a report to the Government to receive and explain the opinions of the National Assembly Standing Committee on the amended draft, which contains many different ideas. The amended draft Housing Law is expected to be submitted to the National Assembly at the 5th session in May and approved at the 6th session.
The Ministry of Construction proposed two options for the ownership of apartment buildings: ownership with a definite term or no regulation on ownership for a limited time. The government has decided to choose the option of “terminating apartment ownership regulations” and report it to the National Assembly Standing Committee.
Foreign individuals are allowed to buy and own houses in Vietnam, including single-family homes and condominiums, in permitted areas. House buyers are granted certificates of land use rights and ownership of houses and other land-attached assets. However, foreign individuals are not eligible to use land in Vietnam. The Ministry of Construction has proposed that the amended draft Housing Law allow foreign individuals to buy and own houses in Vietnam, including individual houses and apartment buildings, and abolish the regulation that foreign organizations and individuals may own houses associated with leased land use rights.
Regarding social housing, the draft law removes the requirement that 20% of land fund be used in investment projects to build commercial houses and urban areas for investment in social housing construction. The draft law stipulates additional authority of the provincial People’s Committee in using the money to invest in the construction of social housing projects for sale, lease, or lease purchase and project housing for workers to rent in the area. Investors of social housing projects are entitled to incentives for land allocation without the collection of money in the form of land use levy exemption.
The draft law also proposes to reduce the minimum lease contract term for social housing from 5 years to 3 years. This change is aimed at giving tenants more flexibility in choosing their housing options, while still ensuring that social housing serves its intended purpose of providing affordable housing for low-income households.
In addition, the draft law introduces new regulations to promote the development of rental housing, which is currently in short supply in many parts of the country. Under the proposed regulations, developers of rental housing projects will be eligible for certain incentives, such as reduced land use fees and streamlined administrative procedures.
The Ministry of Construction has stated that the proposed amendments to the Housing Law are necessary to address the current challenges facing the housing market in Vietnam, including a shortage of affordable housing and a lack of investment in social and rental housing projects. By allowing foreigners to buy and own houses in Vietnam and promoting the development of rental housing, the government hopes to attract more investment into the housing market and provide better housing options for all residents of Vietnam.
In conclusion, the proposed amendments to the Housing Law represent a significant step forward for the housing market in Vietnam. By removing restrictions on foreign ownership of property, reducing the minimum lease term for social housing, and promoting the development of rental housing, the government is taking important steps to address the challenges facing the housing market and improve the living conditions of all residents of Vietnam.