Ministry drafts decree to encourage overseas Vietnamese to buy homes

The Construction Ministry has drafted a new decree designed to make it easier for Viet kieu, overseas Vietnamese, to buy residences in Viet Nam.

The draft decree would supersede Decree No 90/2006/ND-CP of September 6, 2006, that expanded the number of Viet kieu eligible to buy houses in Viet Nam, the ministry’s House Management Department director Nguyen Manh Ha told VN News yesterday.

The Viet Nam News understands that feedback to the draft decree has been gathered from other ministries and it is now with the Justice Ministry.

The decree will go to Prime Minister Nguyen Tan Dung for expected approval by the end of April.

The draft decree divides eligible Viet kieu into two categories.

The first is for Vietnamese citizens living abroad, including Vietnamese nationals and foreign-passport holders who retain their Vietnamese nationality.

They will be allowed to own an unlimited number of houses in Viet Nam in the same way as Vietnamese living permanently in Viet Nam.

Vietnamese living abroad, and who have not retained their nationality will be included in this first category if eligible as listed by the Housing Law, Article 126.

The second is for other Vietnamese living abroad and who have been in Viet Nam for at least six months or hold visa-exemption certificates will be allowed to own a single residence.

Prevailing Decree 90 stipulates that only Viet kieu who are long-term investors; scientists or cultural experts; those who have made significant contributions to the country; or those who have been allowed to live in Viet Nam for a long time can own an unlimited number of houses.

It also allows Viet kieu who have been staying in Viet Nam for at least six months in one visit to own a single residence.

Construction Ministry officials are known to believe that the decree fails to identify who is an overseas Vietnamese and lacks detailed supplementary documents to show how long a Viet kieu has been a resident and of which groups he, or she, is a member.

"I have read the regulations. They are quite ambiguous. I don’t know whether I am eligible and what to do to buy a house," said German passport-holder Ho Hiep.

"I think the Government’s policy is very good but its popularisation is more important, said Canadian Viet kieu Nguyen Hoai Bac who has been an investor in Viet Nam since 1992.

"But the policy should be turned into law.

"Decrees are less than a law and I’m afraid that Viet kieu may still face difficulties when working with local authorities."

But demand by Viet kieu to buy residences is difficult to predict.

Hiep said it was not really necessary for him to buy a house because as the chief representative of a German construction company, his rent of more than US$3,000 a month was paid for him.

"But I think I must buy a good apartment in the future if the company changes its policy to transfer a fixed monthly housing allowance to my bank account instead of directly paying the fees," he said.

Nguyen Hoai Bac said he lived in the house of his wife’s family.

The Viet Nam News understands that the draft decree clearly stipulates the documents required to prove a person an overseas Vietnamese.

As such, it is held to be both more practical and more detailed than the ruling decree.

Only about 130 overseas Vietnamese had bought houses since Decree 90 came into effect more than one year ago, said the House Management Department director Nguyen Manh Ha.

The number was too few when compared with a total of about 3.2 million overseas Vietnamese, he said.

Most of the 130 live in southern Viet Nam, especially HCM City.

The proposed changes to the decree would help realise the Government’s policy of considering overseas Vietnamese as an integral part of the Vietnamese community, Prime Minister Nguyen Tan Dung said in his summary of a meeting between representatives of the Construction, Foreign, Public Security and Justice Ministries to discuss changes to the decree last September.

The law asit stands

The legal documents that now govern overseas Vietnamese buying residences in Viet Nam include:
– Housing Law, adopted on November 29, 2005, Article 126 to 130.
– Decree 90/2006/ND-CP, of September 6, 2006, Article 64 to 68. (VNS)