The Foreigner's Guide to Buying Property in Vietnam (2022)

Vietnam, being one of the fastest-growing economies in Southeast Asia, has attracted an increasing number of foreign investors and expatriates over the years to reside in its flourishing nation. 
 
Cekindo mentioned that alongside China’s global increase in production costs, Vietnam's 2.9% economic growth rate outperforms several Asian economies, as do its solid governance, political stability, transparency, and market liberalisation.

According to Cushman & Wakefield, the rising demands for manufacturing led to a hike in commercial rents in cities such as Ho Chi Minh – from 9.0% in 2019 to 10.6% in 2020. This led to apartment prices in the nation increasing by a shocking 90% between 2017 to 2020 due to the massive demand from foreign investors.

That said, if you’re looking to invest in Vietnamese real estate as an international investor, look no further than this easy-to-follow guide!

Are foreign investors allowed to invest in Vietnamese properties?

The short answer: YES! 

The Vietnamese Law on Residential Housing (LRH) grants foreign investors a significant amount of purchasing power, permitting them to purchase as many properties as they fit. That said, the Law on Residential Housing (LRH) further states that: 

• International investors with a travel tourist visa are allowed to buy property 
• There is no limit to the number of real estate units foreigners are allowed to buy, but no more than 250 houses in a single ward 
• Foreigners married to locals are given freehold ownership 
• Foreigners can purchase no more than 30% condo block units, and 10% landed project units 
• The leasehold period goes up to 50 years, and renewal is allowed
  
  

Real estate foreign ownership and the Pink Book in Vietnam 

According to Cekindo, before acquiring real estate in Vietnam, you must first obtain a property ownership certificate from the government. This certificate, often known as the Pink Book, declares that you fully own any real estate and other assets in Vietnam.

The Pink Book is a certificate the Ministry of Construction issued concerning home ownership and construction working rights.

This is a crucial document required before conducting any real estate transaction. The necessary details it holds serve as a form of verification and protection of your rights and obligations.

In summary, the Pink Book acts as a guide to: 

• Choose the best home in the best location for your intended outcome. 
• Evaluate whether the land rights use/zoning area matches your purpose (residential, commercial, etc.) to avoid converting the usage  
• Real estate and land are bound to appreciate over time

Hence, just like any international investment process investing in property as a foreigner has its fair share of challenges, but this makes the outcome all the more rewarding.

Start anew by taking a chance on Vietnam's real estate today! A fresh start in your life, all through the living spaces of this vibrant country.

International property investing goes beyond Vietnam; find your next real estate investment today when you reach out to our trained professionals!