For the last decade, Vietnam has been opening its doors to the world.  In that time, McDonalds have opened their first branches here, WTO membership has been secured, and foreign tourism – though currently stagnating – has become an integral part of the Vietnamese economy.

Beautiful riverside Saigon Pearl apartment price from $125.000

On July 1^st 2015, another milestone was met: for the first time, foreigners were allowed to buy property in Vietnam.  2 months on, a steady flow of purchases have been welcomed by the industry as a sign the policy will boost a market which has suffered over-capacity in recent years. 

While bottom-line contributions to the economy – which is still experiencing robust growth – are the key driver of the changes, there is fervent hope that an additional benefit will be felt in improvement of Vietnam’s international business reputation.

Although cross-border trade and exports are healthy, Vietnam still suffers an unwanted reputation for ‘dodgy dealing’ and limited transparency.  Concerns abound that this may discourage foreigners from investing capital in.

But what are the realities of the situation?

Question time

If our inbox is anything to go by, the realities matter far less than suspicions that all is not as it seems.  Expats resident in Vietnam and buyers overseas have inundated us with questions, laden with concern and cautiousness.  Some have had bad experiences trading on the ground, or dealing with the authorities, while others have simply read horror stories on the internet and fear the worst.

The questions have a repetitive ring to them:

• “Can I actually buy property, and then sell it afterwards?”
• “Is it true that I can’t take my money out of Vietnam?”
• “Are there any safeguards if it all goes wrong? I’ve heard it’s the wild west out there….”

Simple questions, but – as with any aspect of life in a developing country – the answers are not always straightforward.  We’ve tried our best, however, to come up with answers for these and other key points which honestly reflect the situation as it stands.

1. “Is it really ownership, or just a lease?”

Perception: Foreigners don’t have the same right to buy as locals, and ‘foreign property ownership’ is effectively just a lease with severe limitations.

Reality:  In many media articles and in government output, the allowed ownership term has been described as a ’50 year lease’.  The term ‘lease’ is interchangeable in modern English with ‘rent’, and this is the source of confusion. 

The new law does limit the term of ownership to an initial 50 years, with an extension of 50 years allowable after that.  However, this is very different from a ‘lease’, and is in line with neighboring countries like Singapore and Thailand.

And unlike a lease, if a foreigner buys a property, there is no other ‘owner’ with overall rights to the residence, office etc. The foreigner owns the property entirely, just as a Vietnamese person would own it. 

The difference between local and foreign ownership is this: after 50 years, or 100 years after extensions, you are compelled to sell the property. You can sell it to whoever is eligible to buy it, and revenue from the sale would be yours. Period.

Vinhomes Central Park overview

2. “Can I transfer cash out of Vietnam?”

Perception: Getting cash into Vietnam is easy, but banks and the authorities will block any transfer of money out of the country.  They want to keep the money in the country at all costs.

Reality: It’s not as quite as easy transferring money from bank to bank in your own country, but it’s pretty straightforward – as long as everything is legal and above board – although exchange rates might prove problematic.

Sending money home from a sale does require a few hurdles to be jumped, but it is a transparent process regulated by the State Bank.  They stipulate the procedures to the commercial banks, who are required to check the legality of all money going out of the country.

We spoke to Techcombank, which is backing some big new projects like Vinhomes Central Park and Masteri Thao Dien, and were told the steps to transferring your cash out following the sale of a property are:

1. Retain all documentation, including banking transactions, proving the property you’ve sold is yours and the proceeds are rightfully yours.
2. Take this, along with ID like passport, Visa and/or resident’s card, to the relevant bank, and fill out the transfer order forms
3. The bank then checks your paperwork, and that the amount being transferred doesn’t exceed the proceeds of the sale. If it all checks out, they process the transfer.

There is one issue which might cost foreigners to lose some cash in such a transaction: exchange rates.  By law, all purchases must be in the local currency – Vietnamese Dong (VND).  The buyer is required to transfer the cash into the country in foreign currency, and then convert it to VND prior to purchase.

The reverse then applies after a sale – VND has to be converted back into foreign currency before it can be transferred out.

The big banks offer globally competitive currency exchange fees, and remain a better option than using secondary or ‘black market’ sources, especially for preserving the legality of the sale.  The real question for every buyer and seller – as with any international transaction – is: will global exchange rates help or hinder your profit margin at the end of the day?

3. “Are there any agents we can trust?”

Perception: Everything in Vietnam is about getting quick cash today and not thinking about tomorrow, and it makes vendors impossible to verify.  Can any local agent be trusted?

Reality: Sadly, there are too many bad agents out there for this to be entirely in the ‘myth’ category.  But there ARE good ones, and there are ways to find them.

Though there are isolated cases of outright theft in the industry, the biggest issue that all buyers – foreign and domestic – face with disreputable agents is what can be charitably called ‘misdirection’:

• assurances that facilities can be included when they can’t;
• promises of lovely views tarnished by the reality of a new adjoining construction;
• wildly overestimating completion and delivery times; and
• a complete lack of transparency in dealing with problems and questions on every level.

As agents ourselves, we despair at hearing tales of dodgy dealings.  Most Vietnamese people are honest, and feel genuine anger and embarrassment each time a fellow countryman behaves dishonorably towards an honest foreigner.

Don’t despair though – here are some tips on avoiding the bad guys:

1. Check their trade memberships: the industry as a whole is keen to improve its reputation, and bad agents tend to shy away from its glare by acting alone. Always check whether an agent is part of an association which regulates its membership, such as Ho Chi Minh City Real Estate Association, the Hanoi equivalent, or the national association, VnREA.
2. Take on two: want to verify the answers you get from an agent? Speak to a competitor, and compare the information.  If something doesn’t add up, then move on.  It’s a buyer’s market out there, so use this to your benefit.
3. Ask lots of questions: don’t be afraid of asking the most searching queries. If the answer is always “Yes, of course” or a broad, smiley shrug, they’re probably a wrong ‘un: good agents want you to have all the information you ask for, not just tell you what you want to hear.
4. Research, research, research: Found somebody whose website looks great? Ask around about them, whether a friend or an online expat/business community.  Check and double check every reference you get, and if they don’t provide them, say goodbye.
5. Check the menu: does an agent keep offering you property in a development you’ve already rejected? If so, go elsewhere.  A good agent is there to help you find the right solution for you, not their mates at a project offering them extra commission, and should have a wide range of options available.

We of course can’t guarantee these steps will always lead to a good experience, but they will help.

4. “Won’t the government change its mind?”

Perception: Vietnam’s communist government lacks transparency, and is prone to sudden changes.  They are pro-foreign money now, but they could well change their policies in a heartbeat.

Reality: It’s true that the Vietnamese policy-making machine is far from open and accountable, and remains a mystery to those outside its inner circle.

However, it’s track record suggests it isn’t prone to knee-jerk changes in big chunks: in fact, quite the opposite.  Big changes happen slowly – too slowly for some – and any major policy shifts which would reduce their standing in international circles (apart from China perhaps) are thought to be seriously unlikely.

Especially so in 2015, when the previous decade has seen the Government double down time and again to increase – not decrease – its entanglements with foreign bodies.  From WTO membership in 2007 right through to the imminent TPP deal, international trade ties are deepening all the time, and any moves – like suddenly changing foreign property laws – would do lasting harm to these pursuits.  Details have been amended through subsequent circulars, and further updates are expected, but the core of the legislation is likely to be unmoved for some time.  Foreign ownership is here to stay.

Of course, there is technically the possibility that a big change could occur. But isn’t there also a technical possibility that Canada could declare war on the USA?

5. “Is it true we can buy property but not land?”

Perception: the law says that while foreigners can buy property, they can’t own land.

Reality: Entirely accurate – but this goes for all buyers, not just foreigners.  Officially, the state is the sole owner of all land in the country.

Gateway Thao Dien, Beautiful riverview apartment

6. “Why can we only buy apartments, and in certain areas?”

Perception: Foreigners are corralled into buying in certain districts, and certain types of property.

Reality: The law is clear on this: though there are some restrictions on the quantities of foreign ownership, individuals retain the right to buy any kind of property, in any part of the country.

The broadest restriction is this: each individual ward (or Phuong) can only allow 250 houses, or 30% of an apartment block, to be purchased by foreigners.  Currently, there’s plenty of capacity for anyone to buy where they want, and any local authority resisting this faces investigation higher up the food chain, and even by the police.

There are other caveats yet to be clarified, such as foreign ownership being disallowed in areas owned by the military, but risks around contravening this are minimal.

7. “Is our investment safe in Vietnam?”

Barring the acts of criminals, it’s as safe as it is at home.  Of course, the value of property can go down as well as up, but the same is true anywhere.  Right now, the market looks positive, and the deepening of US-Viet ties look set to keep it buoyant in the long term.

Just the beginning

So, is it safe for foreigners to buy property in Vietnam?  We think so.  We think it’s a good investment too, but it’s important to note that there are hurdles to jump along the way.  These are just some of the issues facing all buyers – foreign and domestic – in an emerging market taking its biggest steps to openness in history.  We’re only 2 months into this ‘brave new world’ and some parts are still to settle down and reveal themselves, while other issues are yet to emerge.  When they do, we’ll let you know about it honestly and objectively.

It’s important to note that, yes, we are an agency – and we would love to sell you a property –  but in addressing these questions, we feel the right thing to do is to give you an honest appraisal based on facts and experience.

Got any questions you want answered about the property market here in Vietnam?  Get in touch and let us know.
Subcribe our Newsletters

VietApartment NEWS

(Any reproduction of this material by any means, in whole or in part, is prohibited without written permission from VietApartment.com)

Vinpearl Premium Villa Facing the ocean

Many of these rules might be plain common sense to some, but the best routes to a successful transaction are often the simplest.  The new law which came into effect on July 1^st 2015 has added a new dimension to the property market never before seen in Vietnam: legal ownership options for foreigners.

Mr. Ngo Dinh Han, real estate lecturer at the University of Economics Ho Chi Minh City, is positive about the impact of these changes, but is keen to reinforce good practice in this brave new world.  Here are his 8 key rules of thumb for a safe and productive investment:

• Get certified

It’s not enough to have a Vietnamese name.  To qualify as a Viet Kieu, and enjoy the same ownership rights as citizens of the country, you need to have your identity documented.

Currently, Vietnamese origin can be certified by the diplomatic missions of Vietnam abroad, the State Committee of Vietnamese living abroad, or regional Departments of Justice.  This should be done as early as possible, or your ability to buy as a Viet Kieu will be limited.

If you can’t verify your origin, you can still buy legally on the same terms as non-Vietnamese foreigners.

Vinhomes Central Park Overview

• Clear your cash flow

If you’re paying via a bank transfer, consult with financial institutions at either end of the transaction to ensure the specific needs of the law are met.  There needs to be a paper trail documenting the origin of your money before a purchase can be ratified.

As for where the money comes from, it’s advisable to generate the cash from your overseas base, to limit exposure to Vietnamese banks’ lending rate fluctuations.

• Keep it legal

Do not part with money without legalities being entirely secured.  This means ensuring the property has a “Pink book”, without which ownership cannot be verified.  If someone offers you a bargain but doesn’t have the paperwork, run away from them. Quickly.

If you’re looking to buy into a new or developing project, double check both the legalities, reputation and realities of the developer you’re planning to do business with.

• Know what you want

Don’t just look at prices and promising rates of return.  Is the property what you actually want?

If you’re buying for rental purposes, is the Villa in Thu Dau Mot really your best option?  If you’re buying now to live in later, will you want to have a property next to a university or industrial park?

Location, as ever with property, is the biggest factor.  But not the only one.  If you’re planning to buy without a deep understanding of the area, conditions, prospects and outcomes of similar projects, then – take a breath, step back and do your homework.

• Work with professionals

A professional, independent brokerage firm might be the wisest part of your investment plans.  Regulations and legislation can be cumbersome, and stump even the natives, despite them being long-exposed to Vietnamese bureaucracy.

Engaging a third party to assist in the purchase is vital in negotiating what is still a new, emerging market.  A trusted partner on the ground will have up to date insight into the real state of the market, as well as essential knowledge of how to deal with all aspects of the agreement.

• Off-plan legalities

By law, new developments must be fully guaranteed by the banks.  If you’ve met all of your own obligations, this is hugely advantageous: if the developer fails to deliver as agreed, this guarantees a refund of all your payments to that date.

You can check which projects have been certified via the State Bank, who can tell you which of 33 banks are backing your project of interest.  If you can’t get this verified, then do not buy off-plan.

• Manage your property

Your investment is only as good as the state of your property.  Ensuring the property is well-maintained is vital to securing any kind of return.

If you have family happy to keep an eye on the place and respond to the needs of tenants, great.  If you don’t, use an asset management company – it’ll pay for itself in the end.

Beautiful riverside Saigon Pearl-good investment now 

• Get a lawyer

If you’re doing this right, then you will have a lot of legalities to manage – your own Viet Kieu origin, dealings with brokerage and asset management companies, not to mention contracts, money transfers and keeping up to date with legislative changes.

Don’t be a hero – get a specialist lawyer you trust, and let them carry the load.

—

Of course there are things you can’t predict, and bad luck and dodgy dealing can always happen.  But with the post-1^st July law changes already boosting the market, it’s still a great time to buy – and these tips are a great place to start.

Subscribe our newsletters

VietApartment NEWS

>Share if this blog is useful

NO.1 CITY GARDEN

You will have windy river-view and city-view apartment, only 7 minutes to Saigon Business Center. Especially, pets are allowed here.

Address: 59 Ngo Tat To, Binh Thanh, HCMC

Finished in 2012

Apartment area: 68.5 to 117.5sqm (3 bedrooms) and penthouse

Selling price: 1.645-1.911$/1sqm (included VAT)

Number or apartment: 926

Renting price of furnished 1 bedroom unit: 1000$/month

Management fee: 19.800 VND/1sqm

Developer: Can Ho Vuon Pho Vietnam Ltd

NO.2 SAIGON PEARL

Your apartment will face to Saigon River and City center. You will have heavenly riverside environment and it takes you only 8 minutes to Saigon Business Center.

Address: 92 Nguyen Huu Canh, Binh Thanh, HCMC

Finished in 2012 (last building)

Apartment area: 1, 2, 3, 4 and penthouse

Selling price: 1.800-2.800$/1sqm (included VAT)

Number or apartment: apx 1500

Renting price of furnished 1 bedroom unit: 950$/month

Management fee: 18.700 VND/1sqm

Developer: Vietnam Land SSG Group

NO.3 ESTELLA (1)

One of the best living space in District 2. Estella apartment has created a unique brand for Tien Phuoc and Keppel Land in Vietnam. Quality of Singaporean living standard in Vietnam!

Address: Hanoi Highway, An Phu, District 2, HCMC

Finished in Dec 2012

Apartment area: 98 – 104, 110 – 124, 148 – 171 and penthouse 250sqm

Selling price: 1.600 – 1.780$/1sqm (included VAT)

Number or apartment: 719

Renting price of 1 bedroom: $850/month

Management fee:  16.500 VND/1sqm

Developer: Tien Phuoc and Keppel Land (Singapore)

NO.4 THE VISTA AN PHU

Favorable living space of many Japanese and Korean in Vietnam. Different quality of living than surrounding buildings. You will have very kind neighbor when live here.

Address: Hanoi Highway, An Phu, District 2, HCMC

Finished in Dec 2011

Apartment area: 101 – 135 – 142sqm, duplex 407sqm and penthouse 450sqm

Selling price:  1.290 – 1.555$/1sqm (included VAT)

Number or apartment: 750

Renting price of furnished 2 bedrooms unit: 950 $/month

Management fee:  16.000 VND/1sqm

Developer: Capitaland

NO.5 XI RIVERVIEW PALACE

Unique project for European and American residents with only large-area apartment type. Riverside, green environment, clean space to live!

Address: 190 Nguyen Van Huong, Thao Dien, District 2, HCMC.

Finished in 2011

Apartment area: 145 – 201sqm (4 types of apartment)

Selling price:  2.130 – 2.300$/1sqm (included VAT)

Number or apartment: 258

Renting price of furnished 3 bedrooms: 2000$/month

Management fee:  16.000 VND/1sqm

Developer: GS SD

NO.6 THE MANOR OFFICETEL

Known as very safe place to stay. With features facing to Saigon River and following European style, The Manor is a favorable destination of many foreign residents to enjoy life!

Address: 91 Nguyen Huu Canh, Binh Thanh, District 2, HCMC

Finished in 2009

Apartment area: 34- 51- 65, 74 – 95, 120 -140 sqm

Selling price:  1.700 – 2.500$/1sqm (included VAT)

Renting price of 1 furnished bedroom: 900$/month

Management fee:  –

Developer: Bitexco

NO.7 THAO DIEN PEARL

Right at the east gate of Saigon, closed to new metro line, Thao Dien Pearl is truly a pearl-place to live besides Saigon River!

Address: 12 Quoc Huong, Thao Dien, District 2, HCMC.

Finished in August 2013

Apartment area: 95 – 115, 106 -122 – 132 -137 (3 bedrooms)

Selling price:  $1.530/1sqm (included VAT)

Number or apartment: 466

Renting price of a furnished 2 bedrooms unit: 1000$/month

Management fee:  12.000 VND/month

Developer: Vietnam Land SSG Group

NO.8 CANTAVIL AN PHU – PREMIER

Cantavil An Phu – Premier is a great place to live and do business in District 2. Most of foreigners love living here!

Address: Hanoi Highway, An Phu, District 2

Finished in 2013

Apartment area: 75, 80 – 97, 120, 150 4 bedrooms.

Selling price:  1.290 – 1.500$/1sqm (included VAT)

Number or apartment: 405

Renting price of a furnished 1 bedroom unit: 550$/month

Management fee:  9.900VND/month

Developer: Thu Duc Housing Corp.

NO.9 IMPERIA AN PHU

Imperia An Phu is a peaceful living space at the East gate of Saigon and closed to new Saigon Business Center in District 2. Many Korean and Japanese love living here!

Address: An Phu, District 2, HCMC

Finished in Oct 2011

Apartment area: 92, 131 – 135, Sky-villa 232sqm, duplex 398sqm

Selling price: 1.380 – 1.600 $/1sqm (included VAT)

Number or apartment: 700

Renting price of a furnished 2 bedroom unit: 800$/month

Management fee:  16.100 VND/month

Developer: INVESKIA Ltd

10 SUNRISE CITY (SOUTH)

Sunrise City is the only one candidate from District 7 in this golden list. It is truly worthy place for you to live in the South of Saigon.

Address: 27 Nguyen Huu Tho, Tan Hung, District 7, HCMC

Finished in 2011

Apartment area: 56 – 76, 99 – 106, 120 -123

Selling price: 1.500 – 1.650$/1sqm (included VAT)

Number or apartment: ~700

Renting price of a furnished 2 bedrooms unit: 1.200$/month

Management fee:  13.200 VND/month

Developer: Novaland

All of figures of selling and renting price in this article are updated numbers in October 2015.

For further projects, please visit our gallery.

To receive current price, register to visit apartment, please call 0982.89.50.89 or email us at our business department address: alexhoang@vietapartment.com. Thank you!

VietApartment.com

Saigon Center at Tet holiday

As of July 1^st 2015, foreigners with valid Visas can now buy a house, apartment or building anywhere in Vietnam.  This is the first time property has been made available to foreigners without family ties to Vietnamese nationals.

Though there is broad availability, some limitation on supply exists: in each ward (or Phuong) 250 houses, and 30% of apartment blocks are available to foreigners.  New developments are being built to increase capacity and cater to foreign tastes and standards, and prospects for growth – thanks to pro business legislation and infrastructure investment – are excellent.

Who can buy:

Previously, only blood relatives of Vietnamese nationals and foreigners married to locals were permitted to buy property here.  As of July 1^st 2015, property is now available to:

• Foreign nationals with a valid Vietnamese visa of one day or more.
• Foreign investors and companies registered in Vietnam
• Viet Kieu: people of Vietnamese birth or descent resident abroad.

What are the conditions?

The Vietnamese constitution states that all land is owned by the state.  The property on that land is purchasable, however.  The terms will initially be for up to 50 years, with an extension of 50 years thereafter.  Rights of sale after expiration of the term are guaranteed on a free-market basis, meaning equity can be retained.

About the Vietnamese property market

The market has a strong cost to growth potential ratio, given the stability of the Government and its commitment to attracting foreign investment, particularly in comparison with saturated and politically uncertain neighbors like Thailand and Malaysia.

Though there has been a slowdown, growth – unlike in many Western countries post-2008 – has continued.  The economy, driven by manufacturing and exports, grew at a rate of 5.98% GDP, with growth of 13.6% expected by 2025.

What parts of Vietnam are attractive to foreigners?

Foreign attention is focused on areas rich in commercial possibility:

• Ho Chi Minh City, commercial and investment capital of Vietnam
• Hanoi, seat of government and cultural center
• Nha Trang and other coastal regions popular with foreigners (Russians in particular) and local tourists
• Phu Quoc, an island primed for vast commercial and tourism investment
  
  

  Ho Chi Minh City overview                      

How much is a typical property?

Prices are competitive but vary according to type, style and location:

Homes and villas:

Typical 3-bed family homes come in at

• Ho Chi Minh City: $50,000 to $250,000
• Nha Trang: $50,000 to $ 100,000
• Hanoi: $100,000 to $300,000

Around $1.000.000 to $1.500.000 buys a luxury, 5-bed property.

Apartments

A Western-style apartment with 3 bedrooms in a new, purpose-built development starts at Ho Chi Minh City: $50,000, rising to $150,000.  Other units consider luxury apartments begin at $250,000.

Beautiful riverside Saigon Pearl apartment price from $100.000

How does this compare with neighbors?

Neighboring countries are seeing lower growth prospects and overheated real estate markets.  Other ASEAN governments are seeking to limit rather than encourage foreign ownership.

In Bangkok, prices can start at around $1million for a condominium, while at the lower end foreigners are required to invest a minimum $250,000.  Investors have seen a yield of as little as 5% as the Thai economy suffers a prolonged period of low growth.

In Kuala Lumpur, a similar minimum of $250,000 is required for foreigners to invest in the market, while in Indonesia there are substantial hurdles for any foreigner to buy property.

What else should an investor know?

There is a genuine upward curve to Vietnamese investment prospects, with international agreements and accompanying infrastructure development looking to boost property values substantially over the next decade.

The Trans-Pacific Partnership (TPP) will soon come into force, and Vietnam is expected to benefit most from membership of the world’s largest trading bloc. Closer to home, South-East Asian economic ties will be solidified and enhanced by membership of the ASEAN Economic Community (AEC), raising prospects and standards still further.

Vietnam is preparing the way for greater investment and collaborations through infrastructure and developments, such as:

• A brand new Metro system in Ho Chi Minh City, which is expected to have a dramatic impact on property values;
• New international airports, catering for expected increases in tourist numbers;
• New highways and inter-city railways.

While the future looks bright, Vietnam remains a developing country, and the potential for growth reflects the fact that the landscape is far from perfect.  Corruption and bureaucracy – long felt to be Vietnam’s greatest hindrance – are being acknowledged and challenged as a priority as the country seeks to integrate still further with the international community.  Uncertainty over future legislation is tempered by recognition that Vietnam has one of the most stable governing regimes in Asia, benefiting growth prospects.

Benthanh Market, symbol of development in Saigon

Overall however, the picture is very positive.  In addition to the positive economic forecasts, Vietnamese people welcome foreigners to one of the most optimistic nations in the world, a nation with high literacy, improving education and knowledge of English and strong work ethic.

–
Stay tuned to this blog for further updates on the market.  If you have any question or need advice requirements about property Vietnam, please contact us.

VietApartment NEWS

APARTMENT LEASE CONTRACT

  No: ………………………………………

The Lessor:

                  Represented by: ……………………………Position………………………………

                  ID card NO: ………………………………………………………………………. .

                  Address:………………………………………………………………………… .

                  Telephone: ……………………………………….. .

                  VAT code: …………………………………………………. .

                  Bank account: ………………………Bank name: ………………………………

Hereinafter referred to as “the Lessor”

The Lessee:

                        Nationality: ………………………………………………

                        Passport/ID No: …………………… . Issued on:………… …… .In………………

                        Date of birth: ……………………………………………………………………

                        Telephone: ………………………………………………………………………….      

                        E-mail:…………………………………………………………………………………………………………

Hereinafter referred to as “the Lessee”

The Lessor agrees to let and the Lessee agrees to lease on the following terms:

ARTICLE 1: PREMISES

The Lessee agrees to rent and the Lessor agrees to lease the Apartment, unit No:…………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………

Along with the fixed furniture, decoration and wooden furniture for the residence purpose.

ARTICLE 2: RENT

The Lessee agrees with the Lessor as following:

1. The monthly rental shall be:……………………………………………………. (not including VAT of 10%)

(In words:……………………………………………………………………………………………………. ).

2. The rental shall be exclusive of utilities such as:

• Laundry, electricity (………………………VND/kWh), pure water (………………………VND/bottle). These charges shall be paid separately, according to the actual account consumption and are the subjects that will be changed by supplier at prevailing rates.
• Motor bike parking fee:……………………………….VND/bike/month (if any)

3. The rental includes:

– Room cleaning……………………………..time(s) per week

– Bed sheet and pillowcase changing ……………………..time(s) per week

– Internet ADSL

– Water consumption

– 24 hour security

– Furniture equipment

– Cable TV

– Garbage removal daily

4. The rental shall be fixed during the term of the lease

ARTICLE 3: TERM

1. The period of lease:…………………months

Commencing on ……………………………..and expiring on ……………………………

2. And then, the Lessee has priority to renew this lease for another period, but the Lessee has to inform the Lessor in advance at least forty five (45) days in written notice.

ARTICLE 4: DEPOSIT

1. The Lessee shall pay the Lessor a deposit of ………………………………..VND (In words……………………………………………………………….). This deposit shall be held by the Lessor as security for the due performance and observance by the Lessee of all its obligations under this Agreement and shall not be treated as payment of the rent.
2. The deposit shall be refunded in the same currency (which was paid before) from the Lessor to the Lessee within 3 to 5 working days since the contract expired.
3. The Lessee has to pay completely all bills of utilities such as electricity consumption, laundry service, drinking water, etc… be responsible and bear all costs for any damage or losses of the interior furnishing and facilities caused by the Lessee itself or its visitors during the use of such premises before getting back the Deposit.

ARTICLE 5: PAYMENT

1. The Lessee shall pay the rent by bank transfer through the Lessor’s Viet Nam Dong Account at the selling exchange rate issued by Vietcombank, HCM City branch at the time of payment. Bank charges shall be paid by the Lessee (if any)

VIETNAM DONG ACCOUT:

• Account’s Name: ……………………………………………..
• Account’s number: …………………………………………
• Bank name: …………………………………………………

2. The Lessee shall pay the monthly house rental (……………..) on the first day of the payment period without any demand to pay a debt.
3. If the House Rental remains unpaid at the expiration of five (5) days after becoming payable (whether formally demanded or not), the Lessee shall pay interest on any unpaid sums at the rate of 0.5% per month calculated from day to day from the date the unpaid sums become due until the date they are paid.
4. If the payment is delayed over seven (07) days from the started payment above, the Lease is considered to be expired and the Lessor reserves the right to terminate the Lease without any prior notice and any compensation for the Lessee. In this case, the Lessee will lose its security deposit for the penalty and shall be payable overdue dates of the stay calculating from the first day of the payment and unpaid arising services as well such as: electricity, laundry, hiring car., etc…(if any).

ARTICLE 6: RESPONSIBILITIES OF THE PARTIES

Both parties mutually agree to undertake to the following responsibilities:

1. Responsibilities of the Lessor
2. To hand over the house and facilities to the Lessee on validity date of the House Lease Contract.
3. To guide the Lessee to comply with the regulations on registration of temporary residence.
4. To promptly repair all the damage related to the construction (such as: walls, roof, foundation, drains, electricity & water system, leakage, air conditioners, water heaters) as requested by the Lessee; except the small damage and the other damage caused by the Lessee and its visitors, then the Lessee has to fix it.
5. If there is a need to do the maintenance or repair work, the Lessor must inform the lessee in writing or telephone in advance and the latter to permit the Lessor and its authorized agents to carry out the repair and maintenance works. If the Lessee or the Lessor hinders the repair, thus damaging the safety of the renting house, the hindering part mast bear the cost arising from the consequences.
6. Responsibilities of the Lessee
7. Upon the acceptance of the Lease Agreement, identify cars or international passports of the Lessee and sharers are required to be photocopied and sent to the Lessor before check-in date or upon check-in.
8. To pay the rent on time.
9. To use the premises for the right purpose as specified. Any repairs and renovations which are needed to satisfy its own requirements must be subject to the consent of the owner and must comply with the regulations on capital construction of Vietnam.
10. To be responsible and bear all costs for any damage or losses of the interior furnishing and facilities caused by the Lessee itself (except normal wear & tear), for damage caused by the Lessee and its visitors during the use of such premises and for protecting all its own personal property and effects.
11. To comply with the regulations on the general protection of sanitation environment order and security within the residential areas. The Lessee shall not do anything which may become a nuisance, annoyance, damage or disturbance to the Lessor or the occupiers or nearby premises whether within the Building or otherwise and shall not use the Premises for any illegal or immoral purpose.
12. Not to be entitled to transfer this lease contract or to sublet the premises to another Lessee without the Lessor’s advance written approval.
13. No clothes, sheets, blankets, laundry of any kind or other articles shall be hung out or exposed on any part of the building.
14. Nothing shall be done in the building which will impair the structural integrity of any building.
15. On the expiration of this Agreement, to quietly yield up the building and deliver all locks and keys to the Lessor together with all Fittings therein in the condition as the Premises, Fittings and Inventory were at the commencement of the Term.

ARTICLE 7: QUANTITY RESIDENCE OF THE LESSEE

1. Maximum resident is two (02) persons for one bedroom, four (04) people for two bedrooms, six (06) people for three bedrooms.
2. Guests are responsible for showing passport or identification.

ARTICLE 8: TERMINATION

1. Termination by the Lessor

The Lessor may at any time lawfully re-enter the building and terminate this Agreement:

• The Rent or any amount payable under this Agreement or any part thereof shall at any time be unpaid for eight (08) days after becoming payable (whether formally demanded or not);
• The Lessee is in breach of any term of this Agreement.
• The Term has expired
• The premises are to be demolished under a decision by a duty-authorized body or to be burned or (not caused by negligence of the Lessee)

2. Termination by the Lessee

If the Lessee terminates the Agreement prior to expire date:

• The Lessee is not allowed to terminate the leasing contract before its expiry date, unless the Lessor does not guarantee to provide the leasing house as per the contract’s terms and conditions. In case, the Lessee terminates the leasing contract prior to its expiry date, shall lose Deposit.
• The Lessee, in this time, will guarantee to pay completely the renting house of the last month and all bills of utilities.

ARTICLE 9: COMMITMENT BY BOTH PARTIES

• The Lease contract shall be properly implemented upon execution by both parties. Any amendment and addition must be agreed upon in writing by both parties.
• If there is any dispute or breach of lease by either party, the matter will be settled through conciliation and negotiation.
• If solution could not be found, the matter shall be brought to the HCM City Court for Judgment.
• In case, if the Vietnamese government enacts any new law or regulation on house leasing. Both parties will re-negotiate the related terms and conditions to make them in line the new law or regulation.

The contract is made in four (04) copies, two (02) in English and two (02) in Vietnamese with equal validity. Each party keeps 1 copy in each language. The contract is valid from the signed date.

                                                                             Ho Chi Minh City , ……………………..

                                THE LESSEE                                                            THE LESSOR

                                     (On behalf)                                                                 (On behalf)

To download standard rental contract from, CLICK HERE 

————————————————————————————————————————–

Saigon Pearl apartment for rent and for sell with very affordable price, contact us now!