Could you tell me more about the regulations on foreign company’s purchase of house in Vietnam.
Question:
We are a US-based holding company having a representative office in Vietnam. We are considering some options of housing for our personnel in Vietnam. We knew that the foreigners are recently entitled to buy a house in Vietnam. Is our current representative office entitled to buy house in Vietnam for our personnel? Could you tell me more about the regulations on foreign company’s purchase of house in Vietnam.
Answer:
Under the current regulations, foreign owned capital enterprises currently operating in Vietnam without the function of conducting real estate business and which need residential housing for people working for such enterprises are entitled to buy apartments in Vietnam.
The foreign owned capital enterprises mean the enterprises that are established by the foreign investors to implement the foreign investment in Vietnam or Vietnamese enterprises that the foreign investors acquire shares, merge to directly control the enterprises in accordance with Vietnamese laws.
Therefore, based on the above, your current representative office in Vietnam shall not be entitled to buy house in Vietnam,
The foreign owned enterprises may own one or more apartments in commercial housing development projects at a time and the apartments can be used for residential purpose only and cannot be used for rent, office or other purposes. The enterprises may sell or present the apartments after 12 months as of the issuance date of the house ownership certificate and may mortgage the apartments at the financial institution duly operating in Vietnam.
In case where the foreign owned enterprises are inherited or presented houses that are not the apartments in commercial housing development projects, the enterprises shall be entitled to present or sell such houses to the others who can own a house to receive the values.
The foreign owned enterprises wishing to buy apartments in Vietnam must be currently operating in Vietnam and have the investment certificate with the remaining term of one year or more. The enterprises’ ownership duration of apartments is equal to the duration as stipulated in the investment certificate, including extended duration.
Prior to the expiry date of the investment certificate or liquidation or bankruptcy, the apartments of the enterprises shall be handled in accordance with the laws on investment, bankruptcy and others regulations of Vietnam.
