“There are different provisions of laws on the conditions, duration, forms of ownership, rights and obligations of foreign invested enterprises owning houses in Vietnam depending on such enterprises’ business sectors.“
1. Foreign invested enterprises (hereinafter referred to as “FIEs”) conduct real estate business activities in Vietnam by investing in the construction of houses for the purposes of sale, leasing or lease purchasing.
When the Investment Certificate expires, the FIE has the liability to cede the leasing houses and other unsold houses not subject to demolition to the People’s Committee of the province where the houses reside. Chairman of the provincial People’s Committee shall decide to establish state ownership over such houses and appoint an enterprise with state-owned housing management functions to administer and utilize such houses in accordance with laws.
One should also note that when FIEs – which are not entitled to owning houses in Vietnam or just entitled to owning apartments of commercial housing development project – are donated or inherit an apartment of the commercial housing development project, they can only enjoy the full value of such apartment after directly selling it or authorizing someone to do so with sufficient documentation as prescribed.
2. For other FIEs not implementing real estate business activities, in the event of arising housing needs for their employees, such enterprises are permitted to purchase and own one or several apartments of commercial housing development project and outside of the areas restricting or prohibiting foreigners from residing and traveling in Vietnam.
Enterprises may only use houses for residential purpose, not for rent, for office or other purposes.
The duration of housing ownership in Vietnam is in correspondence with the time limit prescribed in the Investment Certificate of the enterprise, including extended time. The ownership duration is calculated from the date of granting of the Certificate of Housing Ownership and is also stated in such Certificate. In the event of expired investment period, dissolution or bankruptcy, houses of FIEs shall be handled in accordance with provisions of laws on investment and bankruptcy and relevant regulations of Vietnamese laws.
One should also note that if an FIE is donated or inherits other types of housing, such enterprise may only select to own apartments of commercial housing development project. If the house gifted or inherited is not an apartment of commercial housing development project, the enterprise has the right to donate or to sell such house to those subject to owning houses in Vietnam to enjoy its value.
PLF Law Firm