Land deed delays repel investors: EuroCham

By Anh Ky   January 17, 2024 | 04:54 pm PT
Land deed delays repel investors: EuroCham
Residential buildings in eastern Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Delays in granting title deeds to foreign apartment owners might prevent investors from infusing Vietnam’s property sector with more money, the European Chamber of Commerce in Vietnam (EuroCham) has said.

Foreign buyers who go through the process of meeting all requirements necessary to purchase of an apartment are still left at risk of serious, even deal-breaking, conflicts with sellers due to the amount of time it takes for them to receive their new land deed after the transaction, EuroCham reported in the newly-released 15th edition of its White Book, an annual publication providing insight into European businesses’ activities in Vietnam.

Without a title deed, foreign owners cannot sell the property to another buyer to recoup their investment, therefore foreign investors might be reluctant to inject more money into Vietnam’s property sector as a result, according to the White Book.

Vietnam’s Housing Law in 2014 gave permission for foreigners to own houses and apartment in Vietnam except in areas that are deemed sensitive to national security.

But since then, only 3,500 foreign organizations and individuals have come to officially own property units here.

Most buyers are from South Korea, China, Singapore, the U.S., Australia, Japan and Malaysia, according to the Ministry of Construction.

In 2022, Hanoi’s Department of Construction became the first government body to announce a list of apartments in which title deeds have been granted to foreigners.

Foreigners, however, cannot own more than 30% of the total number of apartments in a condominium. They cannot own more than 250 houses in an area that has a ward-level population figure.

They can own a housing unit for 50 years and can extend it for another 50 years. EuroCham is now urging Vietnam to announce the list of projects that do not allow foreign ownership.

go to top