Foreign organizations and individuals who break regulations on buying, selling, transferring and owning houses in Viet Nam will be fined 30 percent of the house's value if the Government approves the Ministry of Construction's proposal submitted last Wednesday.
The draft decree would modify the National Assembly resolution on allowing foreigners to own houses in Viet Nam.
According to the ministry, the regulation is a sanction not an administrative punishment, which is aimed at deterring organizations and individuals from breaking regulations when buying, selling, transferring or owning houses in Viet Nam.
According to Deputy Minister of Construction Nguyen Tran Nam, each eligible foreigner is allowed to own one house in Viet Nam in order to prevent speculation.
"Each eligible foreigner is permitted to own one house. If they want to own other house, they must sell the old one. In case speculation happens, the number of houses bought and sold constantly is small and will not impact much on the real estate market," Nam said.
Under the National Assembly Resolution, which takes effect on January 1, 2009, five different categories of foreign organizations and individuals are eligible to buy houses or apartments in Viet Nam.
Individuals who invest directly in Viet Nam or who are hired for management positions by local or foreign-invested companies in Viet Nam are eligible to own property in here.
Foreigners who receive certificates of merit or medals from the President or Government for their contribution to the country are eligible. Foreigners who work in socio-economic fields, hold a bachelor's degree or higher, and possess special knowledge and skills that Viet Nam needs, are also eligible.
The resolution also targets foreigners who marry Vietnamese residents, as well as foreign-invested companies operating in Vietnam that need to buy apartments for foreign employees, excluding companies operating in the real estate sector.
In order to be eligible to buy an apartment, foreigners must provide a passport or other forms of recognized identification.
They also need papers granted by Vietnamese immigration agencies allowing the buyers to reside in Viet Nam for 12 months or longer, in line with Vietnamese law.
Source: Vietnam News