actual chance to reside anywhere in Ho Chi Minh City

That does sound strange. Maybe you can share some more information.
What district/areas?
Home or apartment or condo? New or existing?
Who told you that it was not available to foreigners?
Are you buying or renting?

My first guess would be, the real estate agent is trying to take advantage of you. The agent probably has another location that will pay them more in commission. But there are some local people that just do not want to rent/sell to foreigners because of fear of additional paperwork or other hassles.

There are many places in HCMC,  you can surely find another.

thanks!  no real estate agent in between. it's only me and the landlord who get the limitations from the district local policeman in charge.  more strange is the policeman provided to my possible landlord other locations to check (???) for me supposedly better and not too much more expensive.  it' s like the policeman is acting as real estate agent himself.   B T W the house is located in district 12 and having a lot of personal stuff I took along with me, 3 dogs, a wife who likes gardening ans stay home  replacing with a different ones it's not that easy

Mmmm the policeman is acting for his brother, cousin, friend, wife, uncle etc who is an estate agent or who owns properties. It will be something like that.

Yep, agree with Matt, the copper is making business for the relatives. I lived out that way about four years ago, there are no restrictions as to where you live, as long as you are registered with the local mafia, sorry,police.

Geez Col!

..isn't it a bit risky calling them by their real names..?

I just hope you don't have any 'accidents'.   

Please stop living dangerously!