Can overseas Vietnamese mortgage their houses?

Lawyer Nguyen Thu Thuy, YouMe Law Firm LLC answers:

Clause 1 and Clause 2, Article 44 of the 2024 Land Law (effective from August 1, 2024) stipulate the rights and obligations regarding land use of people of Vietnamese origin residing abroad who are sổ nhà in Vietnam; foreigners or people of Vietnamese origin residing abroad are not eligible to own houses attached to land use rights in Vietnam as follows:

1. Overseas Vietnamese who are allowed to enter Vietnam are allowed to own houses attached to land use rights in Vietnam; have land use rights through receiving land use rights transfer in housing development projects.

2. Overseas Vietnamese people who are subject to the provisions of Clause 1 of this Article have the following rights and obligations:

a) General rights and obligations stipulated in Articles 26 and 31 of this Law;

b) Transferring the right to use residential land when selling, donating, bequeathing, or exchanging housing for organizations, individuals, or people of Vietnamese origin residing abroad who are eligible to own housing in Vietnam; donating housing attached to the right to use residential land to the State, residential communities, or donating to build houses of gratitude, charity, or solidarity. In case of donating or bequeathing to a person who is not eligible to own housing in Vietnam, this person shall only enjoy the value of the housing attached to the right to use residential land and shall not be granted a Certificate of land use rights or ownership of assets attached to the land;

c) Transfer, lease, donate, bequeath, contribute capital using land use rights according to the provisions of this Law;

d) Mortgage of housing attached to land use rights at a credit institution licensed to operate in Vietnam.

Thus, overseas Vietnamese who own houses attached to land use rights in Vietnam or have land use rights due to receiving land use rights transfer in housing development projects are allowed to mortgage houses attached to land use rights at credit institutions licensed to operate in Vietnam according to the regulations cited above.