Obtaining finance in Vietnam
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Obtaining finance in Vietnam
This is intended as a guide for foreigners looking to obtain finance to buy real estate in Vietnam.
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Bao Tri PhotographySaigon Vietnam - Bitexco Financial Tower
Mar 4, 2017
Very important information to read:
This article is intended as a preliminary guide only and refers to some but not all elements required to consider in detail prior to starting any property dealings or due diligence. Property dealings are often complex, especially in foreign countries and we highly recommend you seek independent professional advice... read more...
This article is intended as a preliminary guide only and refers to some but not all elements required to consider in detail prior to starting any property dealings or due diligence. Property dealings are often complex, especially in foreign countries and we highly recommend you seek independent professional advice... read more...
Foreign buyers face a number of challenges when trying to secure finance in Vietnam. According to Savills, the 2015 changes to the Housing Law allow foreigners to ‘pay for the property via a financial organization operating in Vietnam’. However, there are two hurdles to overcome before onshore debt can be contemplated; the first is foreign investment regulations for individuals from the State Bank of Vietnam, the second is that the debt could only be tied to the length of a visa, effectively two years.
Can foreigners borrow to invest in real estate in Vietnam?
In most cases, foreign buyers — unless they are part of the Vietnamese diaspora — buy properties using loans from foreign banks.
In particular, ANZ Vietnam, Commonwealth Bank and Standard Chartered offer loans to foreign investors. They have English-language websites and staff who are able to assist foreign buyers in English.
Do I have to be a permanent resident of Vietnam?
Standard Chartered and ANZ require a copy of a national ID card or passport, a valid work permit/visa, or a permanent residency. Commonwealth Bank will allow a temporary residence book (KT3) among the other documents.
How much can I borrow?
Standard Chartered offers up to 75 per cent of the value of a first or resale completed property or property under construction. For alternative properties, Standard Chartered offers loans of up to 60 per cent of the house value. For Commonwealth Bank, a maximum of up to 75% of the mortgaged property’s value applies or under their apartment lending program, you can secure your under-construction apartment as collateral to borrow up to 60% property value for 20 years. ANZ also has a loan value of up to 75% of the property’s value.
What are the loan terms?
All banks offer terms up to 25 years for foreign buyers.
Can I get a loan for an investment property?
Standard Chartered offers loans for investment properties.
Source: Jones Lang LaSalle Vietnam Property Investment Guide 2016.
ANZ Vietnam
Commonwealth Bank
Standard Chartered
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Very important information to read:
This article and the above linked articles are not complete and are intended as preliminary guides only. These guides refer to some elements to consider prior to starting any property dealings or due diligence. Property dealings are often complex areas, especially in foreign countries and we highly recommend you seek independent professional advice... read more...
This article and the above linked articles are not complete and are intended as preliminary guides only. These guides refer to some elements to consider prior to starting any property dealings or due diligence. Property dealings are often complex areas, especially in foreign countries and we highly recommend you seek independent professional advice... read more...
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