Borrowing the Vietnamese People’s Property

Starting this weekend, foreigners in Vietnam’s capital city can get 50-year certificates of land use rights and home ownership.  This is a significant development in a communist country where the land belongs to the people.

The Hanoi People’s Committee will not grant foreign ownership for farmland or public parks or gardens, and the ownership certificates ultimately expire.  Even so, it’s hard to imagine the regulatory structure being anything like it is today in fast-moving Vietnam a half century from now.

Economics appears to be a driver of the new policy.  Vietnam is experiencing a prolonged stagnation in real estate values.

Under current regulations, a foreigner is allowed to lease land on a long-term basis, but they cannot own houses; there are  427 exceptions countrywide, but very few foreign home-ownership permissions have been granted over the past five years.

In any case, opening home ownership to foreigners in Hanoi could be a turning point for Vietnam’s dismal real estate market.

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One response to “Borrowing the Vietnamese People’s Property

  1. Yes, the nee Law has been passed, but the implimenting Decree does not make it possible till 1 July 15. And it’s only for residential property. Further, in Vietnam theory is one thing, practice yet another. Corrupt bureaucrats eill put every obstruction in the world up in order to extort the maximum moey for any foreign buyer, and msybe, just msybe, he’ll get this lease certificate in 2 years’ time. In addition, if he sells, how does the foreigner repatriate his money back to his home country due to the Vn Government’s ridiculous currency controls. There is no legislation to cover this. I know what I’m talking about. I’vebeen in Vn for 26 years!

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