Reform des Unternehmens- und Investitionsgesetz 

January 2, 2016  |   No Comments Yet

 

Tags: foreign ownership vietnam, real estate law, vietnam new housing law

Recent changes to Law on Residential Housing in Vietnam are granting more privileges to Foreigners who wish to own a residential property. We hope that the below article, based on information from one of the leading law firms in Vietnam will answer majority of questions prospective buyers might have:

 

On 25 November 2014, the National Assembly passed Law No. 66/2014/QH13 on Real Estate Business (New Law on Real Estate Business) and Law No. 65/2014/QH13 on Residential

Housing (New Housing Law), which will come into effect as from 1 July 2015, replacing the Current Law on Real Estate and the Current Housing Law.

 

ELIGIBLE OWNERS OF RESIDENTIAL HOUSING

 

Similar to the Current Housing Law, the New Housing Law classifies the eligible owners of residential housing in three categories being Vietnamese Entities; Overseas Vietnamese; and qualified foreign individuals and organisations (Foreign Entities).

 

As compared to the Current Housing Law, the New Housing Law provides newly favourable conditions for owning residential housing in Vietnam, especially applicable to Overseas Vietnamese and Foreign Entities. In particular:

 

All Overseas Vietnamese who are permitted to enter Vietnam are eligible to own residential housing. It is also noted that qualified Vietnamese residing overseas are now entitled to the same rights and obligations of Vietnamese individuals, households and organisations*. The pilot scheme under Resolution 19/2008/QH12 permitting Foreign Entities to purchase and own one condominium in Vietnam (Resolution 19) has concluded with unexpected results, failing to improve the housing market for Foreign Entities. The New Housing Law has addressed this issue by easing conditions for Foreign Entities to purchase and own houses in Vietnam. Accordingly, Foreign Entities are required to satisfy fewer conditions to own residential housing in Vietnam.

 

In particular, the following entities are entitled to residential housing ownership**: 

 

Foreign Entities investing in the construction of residential housing in accordance with the relevant property project (Foreign Investors);

Foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign investment funds and branches of foreign bank operating in Vietnam, other than the Foreign Investors (Foreign Organisation);

Foreign individuals who are permitted to enter Vietnam, other than Foreign Investors, and who do not fall within the category of persons entitled to diplomatic or consular immunity and privilege (Foreign Individuals).

It is noted that Foreign Investors are entitled to the same rights and obligations of house owners as those applicable to Vietnamese individuals, households and organisations, except if they construct residential houses on leased land, in which case they are only entitled to lease such residential houses.

 

ELIGIBLE HOUSES OWNED BY FOREIGN ENTITIES

 

Under the New Housing Law, Foreign Entities are entitled to own all types of commercial residential housing, including condominiums and separate residential houses (e.g. villas, townhouses) (Separate Houses) in residential housing projects***;

 

DURATION OF OWNERSHIP

 

Similar to Vietnamese Entities, Overseas Vietnamese can enjoy housing ownership on a stable and long term basis. However, a Foreign Individual will only be permitted to own a house for a period of up to 50 years as from the date of issuance of the certificate on ownership of such house; the actual duration is set out in the certificate on ownership and may be extended if permitted by law. In addition, a Foreign Individual who is married to a Vietnamese citizen is entitled to an indefinite ownership term of their houses with the same rights and obligations as those applicable to Vietnamese citizens. A Foreign Organisation may own a house for a duration not exceeding the term of its Investment Certificate or establishment license****.

 

CONDITIONS ON THE NUMBER OF HOUSES OWNED BY FOREIGN ORGANISATIONS AND FOREIGN INDIVIDUALS

 

The number of condominiums to be owned by Foreign Organisations and Foreign Individuals shall not exceed 30% of the total number of condominiums in one single condominium building.

The number of Separate Houses to be owned by Foreign Organisations and Foreign Individuals shall not exceed 250 Separate Houses in an area having the population equivalent to an

administrative level of a ward (or cap Phuong in Vietnamese).

 

OWNERSHIP RIGHTS

 

Overseas Vietnamese will have the same ownership rights as those of Vietnamese Entities. For example, they will be permitted to sell or mortgage their residential property. A Foreign Individual may also have the same ownership rights as Vietnamese individuals, except that before leasing out their house, a Foreign Individual shall notify the relevant State agency of the leasing transaction and pay the relevant taxes in accordance with the applicable law.

 

Foreign Organisations are only entitled to use their houses as a residence for their employees and are not allowed to lease out nor use it for office use or any other purpose.

 

PAYMENT FOR PURCHASE OF RESIDENTIAL HOUSE

 

For the purpose of controlling housing transactions of Foreign Entities, the New Housing Law strictly requires all payments for purchase and hire-purchase be made through a licensed credit institution in Vietnam.

 

* Article 10 and 11 of the New Housing Law.

**Article 159.1 of the New Housing Law.

***Article 161.2 of the New Housing Law.

****Article 161.2 of the New Housing Law.

 

The above article is for information purpose only.

 

Source: Frasers Law Company (www.frasersvn.com)

 

March 23, 2016  |   No Comments Yet

 

In a recent article by Clarissa Sebag-Montefiore, published in the online edition of the Financial Times, the author argues that Vietnam, a country that wants to catch up with its richer Asian rivals it still offering good value for international homebuyers. A subsidiary of CVR: Central Vietnam Realty focusing on high-end sales – the Luxury Property Danang was mentioned in the article and we are very happy about that as we strive to bring the best of Da Nang’s property market to our clients.

 

Looking at the rising number of Golf Courses already built and over 60 more planned, many of which offer Golf Villas such as The Point within Danang Golf Club, it is pointed out how growing domestic interest in the sport, rising numbers of international tourists and an increase in foreign homebuyers are all helping to spur the growth.

 

Author also notes the importance of the new law:

 

“In July 2015, new laws opened up the Vietnamese property market to expats. Any foreigner with a valid visa, whether resident or tourist, can now buy property on a 50-year leasehold, with options for extension. There are restrictions: foreigners can only purchase 30 per cent of any single condominium building or a maximum of 250 houses in any one administrative ward (overseas Vietnamese, or Viet Kieu, are exempted from these limits).”

 

While the global financial crisis brought the prices down in 2008, the recovery is now very visible:

 

“Recovery came in late 2014, helped by a growing middle class, rising wages, and rapid urbanisation (by 2025, half of Vietnam’s population will live in cities). Cranes are once again rising across Ho Chi Minh City’s skyline, while construction workers camp in makeshift homes under highways and chimneys belch out factory smoke overhead.”

 

 

                                                                                                                                             Phu Quoc Island © Alamy

Author further points out that:

 

“Vietnam still looks like a bargain compared with the rest of Asia. Even in central Ho Chi Minh City, prime properties are priced at $3,000 to $5,000 per sq metre, well below Bangkok where equivalent properties cost up to $9,375 per sq metre. Rental yields in the country are 1.5 to 2.5 per cent higher than those in Hong Kong, Bangkok and Singapore, according to VinaCapital.

 

As such, Vietnam is shifting from a “frontier market [to] a place to invest in,” says Townsend. Coveted regions include the leafy expat enclave District 2 in Ho Chi Minh City. There, gourmet supermarkets and international schools sit next to riverfront restaurants such as The Deck Saigon, which serves foie gras dumplings and lychee cocktails.

 

Ha Long Bay, a Unesco world heritage site with a dramatic seascape of limestone pillars, is up and coming for second homes. Other coastal regions on the rise include Nha Trang in the south, Da Nang, which is Vietnam’s third largest city, and Phu Quoc island. Although rapidly developing, the latter is still significantly cheaper than Phuket or Bali.

 

Ha Long Bay is a popular place to buy a second home © Getty

Yet foreign uptake in these areas has been moderate at best. Local agents put this down to the fact that much of the legislation is still new. One issue is “getting money in and out of Vietnam once the home has eventually sold”, says Matthew Koziora, who leads the sales and marketing department at VinaCapital. Another is whether the home comes with a residential visa. “The new law does allow the foreign investor to generate rental income, but, once it is audited and local tax is paid, can that dividend be sent offshore? That has yet to be tested,” he says.

 

Vietnam has the potential to become a global tourism destination, says Jose Luis Calle, managing director of Lifestyle Retreats, who is developing a resort of 60 suites and villas in Mui Ne, on the country’s south-east coast. The numbers back him up. In 2015, 7.94m holidaymakers visited Vietnam, which together with 2014 were the highest numbers ever recorded. Direct international flights from across Asia to Da Nang more than doubled from 1,045 in 2012 to 2,521 last year.

 

 InterContinental Sun Peninsula Resort in Da Nang, where a four-bedroom villa is on sale for $3.28m

The international buyers that have bought in Vietnam tend to gravitate towards well-established branded projects. At the InterContinental Sun Peninsula Resort in Da Nang, a beachfront four-bedroom villa with two pools is on sale for £3.28m, through Luxury Property Da Nang.

 

 Three-bedroom villa at The Point within Danang Golf Club, last units starting at $315,000

For now, business is doing very well though, not least in golf. VinaCapital says it has sold about 90 per cent of units at The Point, a community of homes arranged around an 18-hole golf course in Da Nang, with the latest crop of homes going to buyers from Singapore, Hong Kong and the US in particular.”

 

Copyright The Financial Times Limited 2016. All rights reserved. Parts of the article published with approval of the FT. For Full article – click here

April 2, 2015  |   No Comments Yet

 

Are you in the process of relocating or thinking about moving to Da Nang, Vietnam?

 

Allow Central Vietnam Realty to help you find that perfect place where you can feel both comfortable and at home. Whether you’re a traveling couple, family of five or young entrepreneur, we will find the apartment, condominium, house or new business locale that suits you the best. From its pristine beachfront and bustling city center to local neighborhoods and quiet, isolated corners, whatever atmosphere or experience you’re looking to have, we can help you find it in Da Nang.

 

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As Da Nang locals ourselves, we know how the right home and area can either make or break one’s experience of Vietnam. That’s why we offer only the best houses on the market, work with the most reliable and trustworthy owners and keep our customers safety and satisfaction at top priority. We are a western-managed, locally run business that combines European standards and practices with local insights and knowledge. Our foreign-trained professionals are multi-lingual, well respected in the industry and most importantly, know the city back to front.

 

Years in the business have helped us find the best properties for the best prices, while establishing crucial relationships with property owners along the way. With a highly respected name in Vietnam’s real estate industry, CVR customers can rest assured that they’re getting the best deal out there. Whether you’re looking for a three-month lease, ten-year contract or to buy a house/piece of property, our excellent staff will assist you every step of the way. With a large list of properties that is constantly growing, we’ll make sure to find you that perfect place in Da Nang.

 

Not sure where to begin? Check out our up to date website for the latest properties to rent or own, or contact one of our personable staff to assist you with your search.

 

Don’t let a bad housing experience be your first impression of living in Vietnam. Find your new home, business or vacation getaway with Central Vietnam Realty- you’ll be glad that you did.