Overseas Vietnamese Allowed to Buy Property in Vietnam from July 1, Market Expected to

Overseas Vietnamese Allowed to Buy Property in Vietnam from July 1, Market Expected to "Boom"

According to the Vietnam Industry and Trade Magazine, the Vietnamese government is expected to present the 2024 Land Law to the National Assembly, which will come into effect on July 1, 2024. A notable new provision in this law is the expansion of land use rights for overseas Vietnamese.

According to Article 5 of the still-effective 2013 Land Law, there is a distinction between "domestic individuals" and "Vietnamese residing abroad" in terms of land access. However, Article 4 of the 2024 Land Law regarding land users groups "domestic individuals" and "Vietnamese residing abroad who are Vietnamese citizens" into one group called "individuals." Additionally, the law adds a new group: "Vietnamese-origin individuals residing abroad."

Thus, regarding Vietnamese residing abroad (commonly referred to as "Viet Kieu"), the 2024 Land Law recognizes two groups eligible for land use rights certificates: "Vietnamese residing abroad who are Vietnamese citizens" and "Vietnamese-origin individuals residing abroad."

Viet Kieu Can Buy Property in Vietnam

The 2024 Land Law will make it easier for Viet Kieu to buy property in Vietnam, eliminating the need to rely on relatives to hold property titles. Article 28 of the law, concerning land use rights, allows Vietnamese-origin individuals residing abroad who enter Vietnam to transfer land use rights in industrial zones, industrial clusters, and high-tech zones (Clause c). They are also allowed to purchase or lease houses associated with land use rights, acquire residential land use rights in housing development projects, inherit residential land use rights and other types of land within the same plot, and receive gifts of houses with land use rights from heirs (Clause h).

It is evident that the term "Vietnamese-origin" has a broader scope than "Vietnamese residing abroad." According to Article 3, Clause 4 of the 2014 Nationality Law, Vietnamese-origin individuals residing abroad are defined as those who once held Vietnamese nationality, whose nationality was determined by descent, and whose descendants are living abroad for an extended period.

However, it is important to note that one of the mandatory conditions for Vietnamese-origin individuals to have land use rights and housing ownership under the above regulations is that they must be allowed to "enter Vietnam" and must provide documentation proving their Vietnamese origin.

Viet Kieu Can Buy Property in Vietnam

The 2024 Land Law significantly expands land use rights and housing ownership rights associated with land for overseas Vietnamese. Once the law officially takes effect, Viet Kieu will be able to buy houses and have the same land use and housing ownership rights as domestic citizens. Many will send money back to invest and buy property in Vietnam.

This will create a substantial demand in the real estate market, particularly in the high-end housing segment, which is currently experiencing an oversupply. At the same time, it will attract a large influx of remittances into the country.

At a 2023 seminar on property purchases for foreigners and Viet Kieu, Peter Hong, Chairman of the Overseas Vietnamese Business Association, stated that many overseas Vietnamese want to return to settle and invest in Vietnam but are unsure how to own property.

According to Peter Hong, there are currently about 5.5 million Vietnamese living abroad, with over 1 million being second or third-generation descendants of Vietnamese parents or grandparents. Among them, more than 20% are at retirement age, and most wish to return to their homeland to live, invest, and reconnect with their roots in their later years.

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