Foreign Ownership Restriction to Real Estate in Vietnam

Thi My Hanh Nguyen; Hoang Minh Hai Nguyen

doi:doi:10.11648/j.ijsts.20231104.13

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Foreign Ownership Restriction to Real Estate in Vietnam

Thi My Hanh Nguyen, Hoang Minh Hai Nguyen

Published in International Journal of Science, Technology and Society (Volume 11, Issue 4)

Received: 13 May 2023 Accepted: 6 July 2023 Published: 9 August 2023

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Abstract

Foreigners are restricted to own land plots and residential houses in Vietnam. Nonetheless, it is revealed in practice that foreigners may evade those restrictions by way of arranging nominee ownership for their Vietnamese spouses. This article discusses the legality and the lawful rights that foreigners may enjoy in case of disputing with their Vietnamese nominees or spouses by evaluating the latest jurisprudences developed in Vietnam over recent years. It is likely that in practice, the Vietnamese court recognizes that foreigners can only be reimbursed for their monetary contribution and is not entitled to co-hold the property title. To address this issue, the Vietnamese Government is currently amending the Law on Land and the Law on Housing, aiming to relax the restrictions on foreigners owning land use rights and residential houses in Vietnam. However, from a regulatory standpoint, this relaxation alone may not meet the high demand in the real estate market or effectively discourage foreigners from resorting to nominee arrangements. An alternative solution could be to establish the recognition of trust agreements between the true owner and the nominee. By adopting this approach, foreigners would still be able to retain the land use rights and ownership of the house without violating the restrictions outlined in the Law on Land and the Law on Housing.

Published in	International Journal of Science, Technology and Society (Volume 11, Issue 4)
DOI	10.11648/j.ijsts.20231104.13
Page(s)	153-156
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2023. Published by Science Publishing Group

Keywords

Real Estate Foreign Ownership, Foreign Ownership Restriction in Vietnam, Vietnam Land Laws, Vietnam Housing Laws, Nominee Arrangement in Vietnam

References

[1]	Thuy An. 2018. What Vietnamese real-estate market benefits from US-China trade war. Tuoitre Journal online. Source: https://tuoitre.vn/chien-tranh-thuong-mai-my-trung-bat-dong-san-viet-nam-huong-loi-20181129112747395.htm, consulted on 8 May 2023.
[2]	Law on Vietnamese Nationality No. 24/2008/QH12 dated 13 November 2008 passed by the National Assembly of Vietnam, as amended in 2014 by the National Assembly of Vietnam.
[3]	Law on entry, exit, transit, and residence of foreigners in Vietnam No. 47/2014/QH13 dated 16 June 2014 passed by the National Assembly of Vietnam, as amended in 2019 by the National Assembly of Vietnam.
[4]	Article 2. Law on Land No. 45/2013/QH13 dated 29 November 2013 passed by the National Assembly of Vietnam.
[5]	Article 5. Law on Land No. 45/2013/QH13 dated 29 November 2013 passed by the National Assembly of Vietnam.
[6]	Law on Land No. 45/2013/QH13 dated 29 November 2013 passed by the National Assembly of Vietnam.
[7]	Article 186.3, Law on Land No. 45/2013/QH13 dated 29 November 2013 passed by the National Assembly of Vietnam.
[8]	Article 7.5, Law on Residential Housing No. 65/2014/QH13 dated 25 November 2014 passed by the National Assembly of Vietnam.
[9]	The Savills Blog. 2018. Foreign Ownership in Vietnam Property Potential And Barrier. Source: https://www.savills.com.vn/blog/article/171842/vietnam-eng/foreign-ownership-in-vietnam-property-potential-and-barrier.aspx, consulted on 26 Jun 2023.
[10]	Tam Lua. 2019. When Foreign Husband And Vietnamese Wife Disputes Overs A Property Upon Divorce. Tuoitre Journal Online, Source: https://tuoitre.vn/khi-vo-viet-chong-tay-tranh-chap-nha-dat-sau-ly-hon-20190410213451285.htm, consulted on 26 April 2023.
[11]	It is common in practice in Vietnam that when a Vietnamese – foreign couple acquires or transfers an asset; the foreigners are usually guided to waive their rights in related to the fund which used to acquire the assets.
[12]	Chi Mai. 2013. Discussion on Property Dispute of Ms. Ngoc Thuy. Tuoitre Journal Online. Source: https://tuoitre.vn/doi-chat-ve-tai-san-tranh-chap-cua-nguoi-mau-ngoc-thuy-573975.htm, consulted on 9 May 2023.
[13]	Chau Thi Khanh Van. 2018. Settlement of disputes in case of nominee ownership - From theories to practices. Nghien Cuu Lap Phap. Issue 1 dated October 2018.
[14]	Nguyen Thi Minh Phuong. 2021. Disputes Over Housing Ownership of Vietnamese Residing Oversea and Their Nominee under the application of Caselaw No. 02/2026/AL in practices. Tạp chí Toà án online. Source: https://tapchitoaan.vn/tranh-chap-quyen-so-huu-nha-o-cua-nguoi-viet-nam-dinh-cu-o-nuoc-ngoai-nho-nguoi-dung-ten-ho-va-ap-dung-an-le-so-022016al, consulted on 26 Jun 2023.
[15]	Hai Lien. 2023. The National Assembly’s hearing on the explanation and the proposal for amendment of Law on Land. Vietnamese Government Journal Online. Source: https://baochinhphu.vn/quoc-hoi-nghe-giai-trinh-tiep-thu-chinh-ly-du-thao-luat-dat-dai-sua-doi-102230609092055445.htm, consulted on 27 Jun 2023.
[16]	Ha Van. 2023. The Government’s special meeting on the draft amended Law on Land and Law on Residential Housing. Vietnamese Government Journal Online https://baochinhphu.vn/chinh-phu-hop-chuyen-de-ve-cac-du-an-luat-dat-dai-sua-doi-va-luat-nha-o-sua-doi-102230410090647628.htm, consulted on 27 Jun 2023).
[17]	Hoai Thu. 2023. Proposal on the right of foreigners to purchase and own houses in Vietnam. Dan Tri Journal Online. Source: https://amp.dantri.com.vn/xa-hoi/de-xuat-nguoi-nuoc-ngoai-duoc-mua-so-huu-nha-tai-viet-nam-20230410213252748.htm, consulted on 27 Jun 2023.
[18]	Khánh Linh. 2023. Foreigners can own houses yet land use rights. Source: https://baodautu.vn/batdongsan/nguoi-nuoc-ngoai-duoc-so-huu-nha-nhung-co-phai-la-nguoi-su-dung-dat-d186011.html, consulted on 27 Jun 2023.
[19]	Nguyen, H. 2023. The institution of trust from comparative law perspective and its applicability in Viet Nam. VNUHCM Journal of Economics, Business and Law, 6 (4), 3485-3490. https://doi.org/https://doi.org/10.32508/stdjelm.v6i4.1026

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APA Style

Thi My Hanh Nguyen, Hoang Minh Hai Nguyen. (2023). Foreign Ownership Restriction to Real Estate in Vietnam. International Journal of Science, Technology and Society, 11(4), 153-156. https://doi.org/10.11648/j.ijsts.20231104.13

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ACS Style

Thi My Hanh Nguyen; Hoang Minh Hai Nguyen. Foreign Ownership Restriction to Real Estate in Vietnam. Int. J. Sci. Technol. Soc. 2023, 11(4), 153-156. doi: 10.11648/j.ijsts.20231104.13

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AMA Style

Thi My Hanh Nguyen, Hoang Minh Hai Nguyen. Foreign Ownership Restriction to Real Estate in Vietnam. Int J Sci Technol Soc. 2023;11(4):153-156. doi: 10.11648/j.ijsts.20231104.13

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@article{10.11648/j.ijsts.20231104.13,
  author = {Thi My Hanh Nguyen and Hoang Minh Hai Nguyen},
  title = {Foreign Ownership Restriction to Real Estate in Vietnam},
  journal = {International Journal of Science, Technology and Society},
  volume = {11},
  number = {4},
  pages = {153-156},
  doi = {10.11648/j.ijsts.20231104.13},
  url = {https://doi.org/10.11648/j.ijsts.20231104.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijsts.20231104.13},
  abstract = {Foreigners are restricted to own land plots and residential houses in Vietnam. Nonetheless, it is revealed in practice that foreigners may evade those restrictions by way of arranging nominee ownership for their Vietnamese spouses. This article discusses the legality and the lawful rights that foreigners may enjoy in case of disputing with their Vietnamese nominees or spouses by evaluating the latest jurisprudences developed in Vietnam over recent years. It is likely that in practice, the Vietnamese court recognizes that foreigners can only be reimbursed for their monetary contribution and is not entitled to co-hold the property title. To address this issue, the Vietnamese Government is currently amending the Law on Land and the Law on Housing, aiming to relax the restrictions on foreigners owning land use rights and residential houses in Vietnam. However, from a regulatory standpoint, this relaxation alone may not meet the high demand in the real estate market or effectively discourage foreigners from resorting to nominee arrangements. An alternative solution could be to establish the recognition of trust agreements between the true owner and the nominee. By adopting this approach, foreigners would still be able to retain the land use rights and ownership of the house without violating the restrictions outlined in the Law on Land and the Law on Housing.},
 year = {2023}
}

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TY  - JOUR
T1  - Foreign Ownership Restriction to Real Estate in Vietnam
AU  - Thi My Hanh Nguyen
AU  - Hoang Minh Hai Nguyen
Y1  - 2023/08/09
PY  - 2023
N1  - https://doi.org/10.11648/j.ijsts.20231104.13
DO  - 10.11648/j.ijsts.20231104.13
T2  - International Journal of Science, Technology and Society
JF  - International Journal of Science, Technology and Society
JO  - International Journal of Science, Technology and Society
SP  - 153
EP  - 156
PB  - Science Publishing Group
SN  - 2330-7420
UR  - https://doi.org/10.11648/j.ijsts.20231104.13
AB  - Foreigners are restricted to own land plots and residential houses in Vietnam. Nonetheless, it is revealed in practice that foreigners may evade those restrictions by way of arranging nominee ownership for their Vietnamese spouses. This article discusses the legality and the lawful rights that foreigners may enjoy in case of disputing with their Vietnamese nominees or spouses by evaluating the latest jurisprudences developed in Vietnam over recent years. It is likely that in practice, the Vietnamese court recognizes that foreigners can only be reimbursed for their monetary contribution and is not entitled to co-hold the property title. To address this issue, the Vietnamese Government is currently amending the Law on Land and the Law on Housing, aiming to relax the restrictions on foreigners owning land use rights and residential houses in Vietnam. However, from a regulatory standpoint, this relaxation alone may not meet the high demand in the real estate market or effectively discourage foreigners from resorting to nominee arrangements. An alternative solution could be to establish the recognition of trust agreements between the true owner and the nominee. By adopting this approach, foreigners would still be able to retain the land use rights and ownership of the house without violating the restrictions outlined in the Law on Land and the Law on Housing.
VL  - 11
IS  - 4
ER  -

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Author Information

Thi My Hanh Nguyen

Faculty of Law, Ho Chi Minh City Open University, Ho Chi Minh, Vietnam
Hoang Minh Hai Nguyen

Gojek, Ho Chi Minh City, Vietnam

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APA Style

Thi My Hanh Nguyen, Hoang Minh Hai Nguyen. (2023). Foreign Ownership Restriction to Real Estate in Vietnam. International Journal of Science, Technology and Society, 11(4), 153-156. https://doi.org/10.11648/j.ijsts.20231104.13

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ACS Style

Thi My Hanh Nguyen; Hoang Minh Hai Nguyen. Foreign Ownership Restriction to Real Estate in Vietnam. Int. J. Sci. Technol. Soc. 2023, 11(4), 153-156. doi: 10.11648/j.ijsts.20231104.13

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AMA Style

Thi My Hanh Nguyen, Hoang Minh Hai Nguyen. Foreign Ownership Restriction to Real Estate in Vietnam. Int J Sci Technol Soc. 2023;11(4):153-156. doi: 10.11648/j.ijsts.20231104.13

Copy | Download

@article{10.11648/j.ijsts.20231104.13,
  author = {Thi My Hanh Nguyen and Hoang Minh Hai Nguyen},
  title = {Foreign Ownership Restriction to Real Estate in Vietnam},
  journal = {International Journal of Science, Technology and Society},
  volume = {11},
  number = {4},
  pages = {153-156},
  doi = {10.11648/j.ijsts.20231104.13},
  url = {https://doi.org/10.11648/j.ijsts.20231104.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijsts.20231104.13},
  abstract = {Foreigners are restricted to own land plots and residential houses in Vietnam. Nonetheless, it is revealed in practice that foreigners may evade those restrictions by way of arranging nominee ownership for their Vietnamese spouses. This article discusses the legality and the lawful rights that foreigners may enjoy in case of disputing with their Vietnamese nominees or spouses by evaluating the latest jurisprudences developed in Vietnam over recent years. It is likely that in practice, the Vietnamese court recognizes that foreigners can only be reimbursed for their monetary contribution and is not entitled to co-hold the property title. To address this issue, the Vietnamese Government is currently amending the Law on Land and the Law on Housing, aiming to relax the restrictions on foreigners owning land use rights and residential houses in Vietnam. However, from a regulatory standpoint, this relaxation alone may not meet the high demand in the real estate market or effectively discourage foreigners from resorting to nominee arrangements. An alternative solution could be to establish the recognition of trust agreements between the true owner and the nominee. By adopting this approach, foreigners would still be able to retain the land use rights and ownership of the house without violating the restrictions outlined in the Law on Land and the Law on Housing.},
 year = {2023}
}

Copy | Download

TY  - JOUR
T1  - Foreign Ownership Restriction to Real Estate in Vietnam
AU  - Thi My Hanh Nguyen
AU  - Hoang Minh Hai Nguyen
Y1  - 2023/08/09
PY  - 2023
N1  - https://doi.org/10.11648/j.ijsts.20231104.13
DO  - 10.11648/j.ijsts.20231104.13
T2  - International Journal of Science, Technology and Society
JF  - International Journal of Science, Technology and Society
JO  - International Journal of Science, Technology and Society
SP  - 153
EP  - 156
PB  - Science Publishing Group
SN  - 2330-7420
UR  - https://doi.org/10.11648/j.ijsts.20231104.13
AB  - Foreigners are restricted to own land plots and residential houses in Vietnam. Nonetheless, it is revealed in practice that foreigners may evade those restrictions by way of arranging nominee ownership for their Vietnamese spouses. This article discusses the legality and the lawful rights that foreigners may enjoy in case of disputing with their Vietnamese nominees or spouses by evaluating the latest jurisprudences developed in Vietnam over recent years. It is likely that in practice, the Vietnamese court recognizes that foreigners can only be reimbursed for their monetary contribution and is not entitled to co-hold the property title. To address this issue, the Vietnamese Government is currently amending the Law on Land and the Law on Housing, aiming to relax the restrictions on foreigners owning land use rights and residential houses in Vietnam. However, from a regulatory standpoint, this relaxation alone may not meet the high demand in the real estate market or effectively discourage foreigners from resorting to nominee arrangements. An alternative solution could be to establish the recognition of trust agreements between the true owner and the nominee. By adopting this approach, foreigners would still be able to retain the land use rights and ownership of the house without violating the restrictions outlined in the Law on Land and the Law on Housing.
VL  - 11
IS  - 4
ER  -

Copy | Download