Cash banned for foreigners' property trade in Vietnam

Foreigners buying or selling houses in Vietnam are required to carry out the transactions through banks in the country and not in cash, local newspaper Vietnam News reported Saturday.

Foreigners can get mortgages if they meet banks' requirements, the State Bank of Vietnam, the central bank, said in a document it has issued to guide the sales of houses by foreign individuals and organizations.

The tenor of the loans cannot exceed the time they live and work in Vietnam, while for organizations and other legal entities, it will not exceed their licence period.

Amendments to the Housing Law that took effect on July 1 permit foreigners and overseas Vietnamese to buy housing if they have a visa to enter Vietnam. They can buy, lease out, gift, and inherit property.

There are a few restrictions, one of which is that combined foreign ownership should not exceed 30 percent of an apartment project.