The national legislators agreed the resolution will be implemented on a trial basis for five years, as of January 1, 2009.

Under the resolution, foreign individuals and organizations who invest directly in the country and those hired as executives by Vietnamese or foreign-invested enterprises will be entitled to purchase and own apartments in Vietnam.

The resolution also benefits foreigners that have made a special contribution to Vietnam recognized by the State President and the Prime Minister, college graduates with special expertise working in socio-economic fields, and foreigners who have married Vietnamese citizens.

Foreigners who want to buy houses are required to have a residency permit for more than one year without diplomatic privileges.

They will be allowed to buy and own apartments in housing development projects in areas they are not banned from living or moving around.

They are permitted to own apartments for a maximum of 50 years from the certified date of ownership but are obliged to sell or donate their apartments within one year of their ownership certificates’ expiry date.

The resolution also gives foreign-invested businesses the right to buy and own apartments. However, they must not get involved in real estate development and must have a real need for employees’ accommodation.

Foreign-invested businesses are required to have investment licences granted by an authorized Vietnamese agency and are allowed to own apartments while they are investing in the country, which is stated in their investment licenses.

The Housing Management Department under the Construction Ministry reported that about 80,000 foreigners are now living and working in Vietnam, of whom 21,000 pass the criteria for owning property in the country.

The department said foreigners have leased around 220,000sq.m of housing space in Hanoi and close to 660,000sq.m in Ho Chi Minh City. They mostly rent villas, attached houses and apartments for periods ranging from three to five years.