Can an FDI enterprise buy, own houses in Vietnam ?

Hi DMS Lawyer in Vietnam! Is an FDI company permitted to buy, own houses in Vietnam ? Could you advise me about provisions of law regarding home ownership of foreign organizations in Vietnam ?

Hi!

Foreign organizations eligible to own houses in Vietnam include:

Foreign organizations 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 (hereinafter referred to as foreign organization) (Clause 1 Article 159 Law on Housing No. 09/VBHN-VPQH dated 04 July 2019).

Foreign organizations eligible to own houses in Vietnam in the following forms:

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 (Clause 2 Article 159 Law on Housing No. 09/VBHN-VPQH dated 04 July 2019).

Conditions for home ownership in Vietnam applicable to foreign organization:

Foreign organizations that invest in project-based housing construction in Vietnam as prescribed in this Law and corresponding regulations of law are required to have an Investment certificate and have houses which are built under a project 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 are required to have an Investment certificate or a Permission to run business in Vietnam issued by the competent State agency in Vietnam (Clauses 1 and 2, Article 160 Law on Housing No. 09/VBHN-VPQH dated 04 July 2019).

Rights of homeowners in Vietnam being foreign organizations:

Foreign organizations that invest in project-based housing construction in Vietnam as prescribed in this Law and corresponding regulations of law are entitled to exercise rights of homeowners as prescribed in Article 10 of this Law, if the house is built on a piece of leased land, the owner is only entitled to lease that house;

Foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign-invested funds and branches of foreign banks operating in Vietnam are entitled to exercise rights of homeowners similarly to Vietnam citizens provided that the homeowner comply with following regulations:

The homeowner may not buy, rent and purchase, receive, inherit and own more than 30% of apartments in an apartment building; or more than 250 houses regarding separate houses including villas, row houses in an area whose population is equivalent to a ward-administrative division;

Foreign organizations are eligible for home ownership as agreed in agreements on housing sale, lease purchase, gifting, or inheritance for not longer than duration stated in their Certificate of investment, including extension duration, the duration of home ownership shall be determined from the day on which the organization is granted the Certificate and stated in such Certificate;

Before the time limit of the home ownership prescribed in this Law expires, the homeowner is entitled to gift or sell their houses to entities eligible for the home ownership in Vietnam; if not, their houses shall be under ownership of the State (Article 161 Law on Housing No. 09/VBHN-VPQH dated 04 July 2019).

Related topics:

May an overseas Vietnamese acquire houses associated with land use rights in Vietnam

Home ownership of foreign entities in Vietnam

Forms of land use applicable to a foreign invested company in Vietnam

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Phone: 0914 165 703 or email: dmslawfirm@gmail.com

Can an FDI company buy, own houses in Vietnam ?