Part of the package attracting foreign talent

Vietnam’s real estate market has expanded rapidly alongside its economic growth, industrialization, urbanization, and rising foreign investment. However, while the domestic housing market has been buoyant, the housing segment for foreign buyers remains relatively small. According to the Ministry of Construction, a total of 6,188 homes owned by foreign organizations and individuals have been issued ownership certificates nationwide to date. 

Since the Law on Housing 2023 took effect, 1,519 foreign individuals have purchased and gained ownership of apartments. These figures remain modest compared with the approximately 160,000 foreign nationals living and working in Vietnam who are eligible to purchase homes. This raises the question of why the domestic housing market has grown so strongly while the segment for foreign buyers has yet to reach its potential. Developing this market requires addressing several fundamental issues.

First is the legal framework governing foreign ownership of housing. The Law on Housing 2023 specifies the eligible entities, conditions, forms of ownership, quotas, rights, and obligations of foreign organizations and individuals purchasing homes in Vietnam. However, implementation challenges and differences in how local authorities apply the regulations require further clarification. In particular, proposed legal amendments concerning the scope of housing available for foreign ownership should be considered carefully to ensure policy transparency and predictability.

Second is housing supply. Foreign nationals may own homes only in eligible projects and areas, subject to limits on the proportion of apartments that can be foreign-owned in each building. Beyond legal eligibility, housing must meet expectations for living space, amenities, transportation, maintenance services, and multilingual support. Assessing supply therefore requires more than counting the number of available apartments. It is also necessary to determine how well properties match actual demand in terms of location, quality, purchase and rental prices, operating costs, and rental investment potential.

Third is accurately identifying customer demand. It should not be assumed that all foreign nationals working in Vietnam want to buy homes. The decision to rent or purchase depends on length of stay, job requirements, family circumstances, budget, and investment expectations. Direct engagement with foreign residents and companies employing international workers is needed to understand their preferred housing types, locations, and occupancy periods, as well as the barriers preventing them from purchasing property.

Fourth are transaction procedures and the issuance of ownership certificates. Even Vietnamese buyers can face difficulties verifying property information, reviewing contracts, making payments, and completing legal documentation. These challenges can be greater for foreign buyers because of language barriers and unfamiliarity with administrative procedures. 

Finally, the government has a responsibility to ensure a safe living environment and protect property rights. Foreign buyers need access to clear, fair, and timely dispute resolution mechanisms and legal procedures. When ownership rights are protected, market information is transparent, housing supply meets demand, and transactions become more convenient, the housing market for foreign residents will be better positioned to develop sustainably. This would also strengthen Vietnam’s appeal to international experts and foreign investment. 

                                                                 * * *

Experience shows that foreign homebuyers in Vietnam tend to favor central urban areas because of their infrastructure and services. However, not all buyers need luxury housing. An engineer working in Vietnam for two years may prefer to rent near the workplace, a manager relocating with their family may prioritize schools, healthcare, and reliable property management, while a buyer may focus on legal certainty and resale potential. Housing supply must address these distinct needs.

Foreign demand for homeownership still has room to grow, potentially absorbing part of the available housing supply, improving urban services, and creating jobs. However, foreign buyers should not be treated as a guaranteed source of demand for luxury real estate. The market can develop sustainably only when properties meet genuine user needs and are operated effectively.

To capitalize on this opportunity, developers should focus on three priorities that the market has made clear. First, research customers by nationality, length of stay, family circumstances, budget, and workplace, and design projects that meet the needs of both domestic and foreign buyers. Second, engage proactively with FDI enterprises, industrial parks, and employers of foreign employees from the earliest stages of project planning. Third, establish dedicated support teams with expertise in foreign languages, law, and cross-cultural transactions. 

I would also emphasize the role of real estate exchanges and brokers. Foreign buyers are at a disadvantage because of language barriers, unfamiliarity with local laws, and limited access to market information. Brokers must do more than introduce properties. They need to explain purchase and rental conditions, ownership periods, costs, legal status, and project ownership quotas. Any information that has not been verified must be clearly identified as such, especially before a buyer pays a deposit.

In the secondary market, whether the seller is a Vietnamese individual or a foreign property owner may affect the buyer’s eligibility to acquire the property under the Law on Housing. The fact that a project has remaining capacity for foreign ownership does not mean every transaction is legally permissible. A standardized pre-transaction checklist would help protect buyers, businesses, and the reputation of the brokerage profession.

At the same time, on behalf of VARS, I propose three measures: introducing a pre-transaction checklist for foreign buyers that covers buyer eligibility, project legality, ownership quotas, ownership periods, and financial obligations; training brokers in multilingual advisory services, professional ethics, and legal restrictions; and coordinating the publication of regular market surveys by location and property segment. 

                                                          * * *

Bac Ninh currently has 20 commercial housing projects officially approved for foreign ownership, offering more than 2,900 homes. Of these, 13 projects, comprising approximately 1,100 homes, were announced before August 1, 2024, under the Law on Housing 2014. The remaining seven projects, offering approximately 1,800 homes, were announced after August 1, 2024, under the Law on Housing 2023. These projects are concentrated primarily in central urban areas.

In addition, the city has developed rental housing projects and worker accommodation facilities in industrial parks that can be leased by businesses to house their foreign experts and employees, with a total supply of more than 6,000 units.

Our review indicates that housing supply has largely taken shape across the city. However, the availability of suitable properties that foreign nationals can access and legally own remains insufficient relative to actual demand. Drawing on our experience in the State management of housing and the real estate market, we have also identified several issues requiring further attention: the legal and regulatory framework, public disclosure and foreign residents’ access to information, interagency coordination, and data infrastructure.

In response to these conditions, the Department of Construction has identified four key priorities.

First, it will continue working with relevant agencies and organizations to review commercial housing projects across the city. This will involve identifying eligible projects and determining the number of homes that can legally be offered to foreign organizations and individuals. We will also assess how housing supply is distributed relative to areas with high concentrations of foreign experts, engineers, and workers, providing a basis for recommending appropriate housing development strategies.

Second, we will explore ways to disclose information through a centralized, consistent, accessible, and regularly-updated system, enabling foreign residents, businesses, and developers to research available options independently.

Third, we will strengthen connections between housing supply and demand. Effective implementation will require coordination between government agencies, project developers, businesses employing foreign workers, and relevant organizations to understand actual needs and guide the development of suitable housing products.

Fourth, we will develop a multilingual online data portal or housing guide. This will serve as an important channel for providing essential information on housing projects, including their locations, types and scale; the number of homes eligible for foreign ownership; legal status and transaction conditions; relevant regulations and procedures; and contact details for developers and competent authorities. 

                                                          * * *

As an FDI enterprise at the VSIP Industrial Park with more than 300 foreign employees, we currently arrange accommodation for our experts close to their workplace, primarily in apartment complexes or buildings operated on a hotel-like model. In practice, companies can choose from several options, including individual apartments, serviced apartments, long-stay hotels, or allowing experts to select their own accommodation within the company’s budget and support policies. Each option has its advantages, but the key is to ensure that it meets both the experts’ needs and the company’s operational requirements.

In my view, housing for foreign experts is not simply an employee benefit. It directly affects human resources management, the ability to attract international talent, and the stability of business and production operations. The current challenge is not just a shortage of housing, but also a lack of suitable supply in terms of location, quality, rental costs, supporting services, and amenities. Foreign experts need secure, comfortable accommodation in a good living environment with convenient access to their workplace.

If housing is scattered across different locations, far from industrial parks, or supported by inconsistent service quality, companies face additional transportation costs, greater management demands, and more time spent resolving related issues. Renting properties across multiple locations also increases the administrative workload, from managing contracts, deposits, and utility payments to handling property handovers, maintenance, and lease renewals, as well as coordinating legally required accommodation notifications and temporary residence registrations.

What companies need, therefore, is not simply a greater number of apartments, but a well-developed housing system that offers consistent quality, transparent information, reasonable costs, and professional services. When these conditions are met, companies can reduce indirect management costs, deploy their workforce more efficiently, and give foreign experts greater confidence in committing to the company over the long term. 

                                                   * * *

Once issued a certificate of homeownership, foreign nationals generally enjoy the rights of homeowners under Vietnamese law. However, several provisions of the Law on Housing 2023 warrant particular attention.

Under Points (c) and (d), Clause 2, Article 20, foreign individuals may own homes under agreements arising from purchase, lease-purchase, gift, or inheritance transactions for a term of up to 50 years from the date the ownership certificate is issued. The ownership period may be extended once, for a further term of up to 50 years, upon request. The ownership term must be clearly stated in the certificate.

Foreign individuals married to Vietnamese citizens living in Vietnam may own homes and enjoy the same homeowner rights as Vietnamese citizens. Those married to overseas Vietnamese who are permitted to enter Vietnam may own homes and enjoy the rights of homeowners in the same manner as overseas Vietnamese.

Foreign organizations may own homes under agreements arising from purchase, lease-purchase, gift, or inheritance transactions, but the ownership period cannot exceed the term specified in the investment certificate issued to the organization, including any extensions. The ownership period begins on the date the organization receives its homeownership certificate and must be clearly stated in that document.

Before the ownership period expires under the Law on Housing 2023, a foreign homeowner may personally or through an authorized representative gift or sell the property to an eligible buyer under Vietnamese law. If the ownership period expires without the owner selling or gifting the property, the home becomes public property.

To navigate the process of finding, purchasing, and exercising ownership rights over housing in Vietnam, foreign nationals should familiarize themselves with the Vietnamese legal system and any specific regulations applicable in their locality. Vietnam’s public service system has developed significantly, with property identification, registration, and information lookup systems now in place to facilitate public access to information. 

Foreign buyers can also seek advice from consulting centers, law firms, and lawyers specializing in real estate. These professionals can explain the relevant procedures and assist with the legal steps required to establish ownership and exercise homeowner rights. If difficulties or disputes arise, foreign owners should contact competent authorities, consulting centers, or lawyers to protect their lawful rights and interests. 

Vietnamese law and society uphold fairness, humanity, and the protection of legitimate rights and interests, regardless of whether a homeowner is Vietnamese or foreign. Foreign nationals should therefore feel able to seek assistance whenever necessary. 

                                                                * * *

Through our project development experience and interactions with foreign customers, we have identified three key factors influencing housing choices: convenient connectivity between home and work; property quality and the living environment; and financial viability, in that prices must fit buyers’ budgets while rental and purchase options should offer flexibility and potential for rental income.

Housing requirements also vary across customer groups. Engineers, experts, middle managers, and senior executives each have distinct needs. In general, however, international experts and executives seek high-quality housing supported by integrated amenities and services.

Bac Ninh’s FDI profile differs from that of many other cities and provinces, as most foreign-invested enterprises and corporations here focus on high-tech industries. As a result, workers, managers, and senior executives have higher expectations for their living standards than their counterparts in other markets.

Nevertheless, Bac Ninh faces a significant shortage of premium apartment complexes comparable to Landmark, Keangnam, and Lotte in Hanoi. This gap deserves greater attention as the city seeks to diversify housing supply and better meet the needs of foreign customers. Developing suitable housing options would not only help attract international experts and executives but also encourage them to stay and build long-term careers in Bac Ninh.