Foreigners entering Viet Nam are no longer automatically allowed to own houses in the country, according to the latest draft of the amended Law on Housing.

Foreigners will be allowed to own their houses for a maximum of 50 years from the date the house ownership certificate was granted.

The National Assembly's Standing Committee was still discussing the latest version of the law last Wednesday and was expected to submit the final draft to the National Assembly for approval by year-end.

The amended law, which will take effect on July 1, 2015, aims to tighten regulations on the right of foreign individuals and organisations to own houses in Viet Nam. However, to what extent the regulations will be tightened remains a controversial matter.

The regulation allowing all Viet kieu (overseas Vietnamese) and foreigners to own houses in the country was seen in the previous draft, along with the Standing Committee's comments, during a meeting last month.

At that meeting, National Assembly Chairman Nguyen Sinh Hung said foreigners who bought houses for accommodation, doing business, studying or settling in Viet Nam would be encouraged, but those who would enter the country for several days and leave after buying a house would be discouraged.

The draft sets clear conditions for foreigners to buy houses in Viet Nam. They must be working, studying or living in the country to be eligible for house purchases.

In addition, the number of apartments in a building or area that will be sold to foreigners will be capped to ensure security.

Payments must be done through banks and credit institutions accredited for the purpose to prevent speculation and money laundering.

Foreigners will be allowed to own their houses for a maximum of 50 years from the date the house ownership certificate was granted.

Extensions will be allowed but must be in compliance with existing laws.

VNS/VNN