Can a foreigner own a house/land in Vietnam? If so, when did this law come into effect?
Ask:I am interested in developing in Vietnam, but worried about buying property. I know the law didn't allow it some time back, and I would like to know if it changed recently.
Property ownership, be it a foreigner or native, was very challenging years ago when the communist government was more controlling over the economy and private property. Technically, you could own property even if you were a foreigner, but the government could take it away from you without any reason and often without notice.
My Mother, who is Vietnamese and has been an America citizen since the 60's, had title to several properties in Thai Binh, which is a province Southwest of Hai Phoung in North Vietnam. The properties included land, homes, the family cemetery and other structures as a part of the family inheritance. The communists had taken posession of the properties decades ago, but returned some of the property in the 90's. Although title was returned to my Mother, this didn't mean she could take posession without any problems.
We had known from others in similar situations that the government would suddenly impose taxes and fines that would amount to more than the value of the property if Viet Kieu (foreign Vietnamese) took posession of their property in Vietnam. Such government practices were lifted a few years ago, and Viet Kieu are able to take posession of their property with less issue.
Currently, foreigners purchasing property is more prevalent, but the process is not as straightforward as in America. The government seems to cause problems with foreigners purchasing homes, which is usually resolved by paying off the proper officials. Such issues are quickly disappearing with the new leadership and Vietnam continuing to be more open towards foreign investors.
If you are intending on investing and developing real estate in Vietnam, I would strongly advice using trusted real estate agents and brokers who have experience working with foreign investors.