The guide to buying a house in Vietnam in just 3 minutes has arrived!

Vietnam is emerging as a bright spot on the global investment map. With advantages like abundant labor resources, competitive production costs, and a proactive open-door policy, coupled with attracting significant foreign direct investment, particularly from major technology corporations, Vietnam is on the path to becoming "the world's new factory". The US-China trade war has further accelerated this process, as many companies have moved their production lines to Vietnam to take advantage of lower labor costs and favorable policies. There are opinions that Vietnam could become "the next China" and that Vietnam's "economic reforms and market opening" might replicate the economic miracle seen during China's economic reforms.

Since 2007, the Vietnamese economy has witnessed a period of rapid growth. The GDP has consistently exceeded growth expectations, maintaining an annual growth rate of over 5%, and in recent years, it has risen to 7%. This impressive growth is the result of several factors, including foreign direct investment, the development of the luxury real estate sector, and deep integration into the global economy.

Vietnam's rapid growth has caught the attention of global investors, turning the country into a new "gold mine". Along with this is a strong surge in the demand for real estate ownership in Vietnam. Explore exciting opportunities with Achieve Realty VN and learn the simplest home buying process in just 3 minutes through the article below!

Can foreigners buy houses in Vietnam?

Before 2015, foreign ownership of real estate in Vietnam was quite restricted. Foreigners often had to purchase through Vietnamese intermediaries, which posed many risks of fraud. However, as of July 1, 2015, the Housing Law has marked a significant turning point. Foreigners can now directly own properties in Vietnam like Vietnamese citizens. However, there are still some regulations to note:

• Ownership duration: For foreign organizations and individuals, the maximum ownership period is 50 years, but it can be extended once, as recorded in the property ownership certificate.
• Ownership ratio: In a building, foreigners cannot own more than 30% of the apartments. For individual houses (including villas and townhouses), foreigners cannot own more than 10% of the total units.

The types of housing currently available in the Vietnamese real estate market are single-family homes and apartments.

• Single-family homes: Typically older style homes, where Vietnamese own both the house and the land indefinitely.

• Apartments: Popular among the younger generation and suitable for the investment needs of foreigners. Foreigners can own apartments for a maximum period of 50 years, which can be extended once, therefore the ownership can be considered up to 100 years.

Foreigners should note the following: Due to ownership restrictions, foreigners are discouraged from buying used homes. However, if foreigners still wish to buy, they can only purchase from another foreigner. If foreigners wish to sell used homes, they can sell to both locals and foreigners.

Regarding loans, foreigners cannot take loans from Vietnamese banks to buy houses, along with very high local bank interest rates.

Necessary documents for buying a house include:

• Valid passport;
• Valid visa to enter Vietnam (ensure the visa is valid at the time of signing the sales contract) or visa exemption documents (for foreigners with Vietnamese spouses or children, or Vietnamese residing abroad).

Home Buying Process:

1. Choose a real estate organization experienced with foreign markets, understanding the Vietnamese market, to find a house that suits your needs, such as Achieve Realty VN; select a priority foreign real estate project, providing professional investment advice.
2. After selecting a house, customers deposit money to the agent to purchase the property;
3. For projects that have been opened for sale, customers can choose to buy directly, the deposit is paid directly to the developer, non-refundable;
4. For projects not yet opened for sale, the deposit is a prepayment, which can be refunded before officially choosing a house on the opening day;
5. After receiving the deposit, customers sign a deposit contract and documents related to the house purchase with the developer;
6. Customers pay directly into the developer's account according to the payment schedule of the sales contract, which can be paid in US dollars or Vietnamese Dong;
7. Within 30 days before the handover of the house, the developer will notify the customer of the handover date, and the customer will receive the house as per the provisions of the sales contract.