Vietnam has passed a law allowing foreigners to own homes as part of its efforts to boost a weakening property market and accelerate economic growth, Bloomberg News reported on Wednesday.
Foreigners with a valid visa as well as foreign companies and international organizations operating in the country now will be permitted to acquire houses and apartments. Before, the law limited ownership to foreigners married to Vietnamese and those deemed to make significant contributions to the nation’s development.
The new rules also allow maximum foreign ownership of 30 percent in any apartment building or 250 houses in a ward, acording to the news agency.
Vietnam is bolstering efforts to boost economic growth to 5.8 percent this year and clear up bad debts in the financial system, some of which are tied to property.
“It is a very helpful move, a good change of policy to open up the real estate sector not only for overseas Vietnamese, but also for foreigners,” said Alan Pham, the Ho Chi Minh City-based chief economist at VinaCapital. “It projects an image of an opening of the economy to foreign capital, and it might help the bad debt problem.”
– Contact us at [email protected]