After seven years in Vietnam Sonia, a British and French national, still has to live in a rented house despite her financial ability and intention to buy an apartment in the country.

Sonia, who married a local man three years ago, decided to buy a 99.8-square-meter flat at US$90,000 in 2012, but the plan was delayed due to legal issues, she said.

“I was not legally allowed to register the apartment under my name,” she said.

While Vietnam has recently paid attention to foreigners and overseas Vietnamese who wish to own an apartment in the country by releasing several policies and pilot programs, reality shows it is truly a tough road to ownership.

Getting married to a local is only one of the required conditions, and what hindered Sonia’s house purchase plan is that she does not have a temporary residence card, she said.

“I tried to get her the card but it is very difficult as she does not have a college degree as well as other legal certificates,” her husband Le Viet Hung said.

The couple and their 3-year-old son thus have to rent an apartment for VND8 million ($385) a month, while Sonia is taking an online course to get a bachelor degree from a French college, hoping to be able to complete the residency procedures in order to make the purchase official.

For Ash, an Aussie, and Joseph, a Frenchman, the solution is having a local register for the apartments under the latter’s name, a choice they admit is risky.

The two may lose their apartments, one in District 1, and one in District 4, in the event of a dispute, they said.

The issue is no simpler for overseas Vietnamese.

Jeanne Huynh, a Viet kieu from France, was able to buy an apartment in District 7 for her and her husband, while her five children are not so lucky.

“My daughter also wanted to buy an apartment but she does not have the one-year permanent residence card, as per law,” Jeanne Huynh said.

Nguyen Xuan Truong, a Viet kieu of Singaporean nationality, said he had to give up his house-buying plan due to the lack of a temporary residence card.

Complex procedure

Many expats in Ho Chi Minh City said it is difficult to own an apartment in the country thanks to a myriad of legal procedures and requirements.

House buyers must have a permanent residence card lasting at least one year, and have to meet a number of other requirements, including working in the eco-social sectors with a university degree, being married to a local; or having contributed to the country’s development, according to Resolution No. 19 and Decree No. 51 of the government.

As of February 2013, there were only 427 cases of foreigners buying apartments in Vietnam, according to the General Department of Land Management. Ho Chi Minh City saw the largest number of cases at 342. The figure, however, remains modest, as there are some 80,000 expats living and working in the country.

“The complex procedures have discouraged foreigners and Viet kieu from buying apartments in Vietnam,” commented economic expert Bui Kien Thanh.

“The conditions should be loosened to enable these buyers to own apartments in Vietnam, which will also help increase consumption for the high-quality segment of the local apartment market,” he added.