Ever wondered how Southeast Asia’s hot markets can boost your business or investment portfolio? Compared to other countries in the region, Vietnam’s property ownership laws and investment regulations offer unique advantages and challenges for foreign investors.

As a strategic consultant with over 20 years of experience in FDI and manufacturing across dynamic markets like Vietnam, I’ve seen firsthand the game changing potential of this region. Vietnam is a rising star not only for its economic growth but also for the opportunities for foreign capital thanks to its political stability and infrastructure development. Its cities are hubs for investors and expats, with vibrant economic activity and connectivity.

The country offers a great mix of investment incentives, rich culture and strong economic prospects that makes it an attractive destination for both residents and investors. Let’s explore how you can invest smartly in its real estate sector.

2025 Key Takeaways:

• New Laws Effective: The amended Housing Law and Land Law, passed by the Vietnamese government and effective January 1, 2025, will refine and clarify the rules for foreign investors, impacting Vietnam’s property market.
• Leasehold, Not Freehold: Foreigners can’t own land. You acquire a 50 year leasehold for the structure, with an option to renew once. This ownership structure is governed by Vietnamese law and property laws.
• Ownership Quotas Apply: Foreign ownership is capped at 30% of the units in a condo building and up to 250 individual houses in a designated area.
• Overseas Vietnamese (Viet Kieu): The new laws greatly expand property rights for overseas Vietnamese, giving them almost the same rights as local citizens and will impact Vietnam’s property market.
• Due Diligence is Key: Navigating the legal landscape requires professional guidance. Engaging a reputable lawyer and real estate agent is a risk free strategy for a smooth transaction, especially with the importance of understanding property investment risks and property laws.

Can Foreigners Buy Property in Vietnam?

Yes, foreigners can buy property in Vietnam but it comes with rules. However buying property in Vietnam as a foreigner involves navigating a complex legal landscape. There are significant restrictions on foreign land ownership and foreigners often face challenges if they want to buy land as direct land ownership is generally not allowed and legal limitations apply. This opportunity was largely unlocked by the 2015 Housing Law and further clarified by the new laws effective in 2025, so it’s essential to research the Vietnamese real estate market thoroughly before making a purchase.

Vietnam Property Ownership Laws

The legal basis for foreign property ownership is that all land belongs to the people and is managed by the state. Under Vietnamese law and property laws, foreigners can’t own land but can lease land for a certain period and acquire the right to use the land and own the structure built on it for a specified period. The new Land Law effective in 2025 aims to create a more transparent and effective legal system which is good news for international investors.

A notable update in the 2025 Land Law is the expansion of land use rights for overseas Vietnamese (Viet Kieu). As detailed in an article from Vietnam Law Magazine, those who can prove their Vietnamese origin are granted property rights almost on par with local citizens, a big shift that can open up new investment channels. Foreigners usually get a long term leasehold with an initial term of 50 years which can be renewed, not outright ownership.

2015 Housing Law – Key Provisions

Since July 2015, foreigners with valid visas can buy apartments and houses in commercial projects, capped at 30% of condo units per building and 10% or 250 houses per ward (Decree 95/2024). Property investment does not grant residency or citizenship; explore employment or business visa pathways for long-term stays.

Ownership Limitations and Restrictions

While you can invest, there are boundaries. Knowing these rules is key to avoiding pitfalls.

• Ownership Caps: Foreigners can own up to 30% of the units in any one condominium building. For landed properties like villas or townhouses, the cap is no more than 10% of the total homes in a single residential project or 250 houses in an area equivalent to a ward. These caps may vary depending on the property type and location, especially in major cities like Hanoi and Ho Chi Minh City where demand and project quotas can differ.
• Ownership Tenure: The standard term of ownership for foreigners is 50 years. A one-time extension of another 50 years may be possible upon application.
• Prohibited Zones: For national security reasons, some areas are off-limits to foreign buyers. Always check if the project you’re interested in is approved for foreign ownership.

Ownership opportunities in major cities are different from those in other areas as property type and foreign ownership quotas can vary depending on the project and location.

What Kind of Property Can Foreigners Buy?

Your investment options are focused on properties within commercial development projects. Foreigners can buy certain types of Vietnamese property such as apartments and units within approved real estate in Vietnam projects but are generally not allowed to own landed housing. The legal rights for properties foreigners can buy include a 50 year leasehold with possible renewal and there are specific restrictions on the number of units foreigners can own in a single project.

Condominiums vs. Landed Property

The most straightforward and popular choice for foreign investors is to buy an apartment or condominium. Buying a landed property like a villa or a townhouse is also possible but only within designated commercial developments. The process and requirements may differ for each property type especially on the property’s legal status, ownership rights and value so it’s important to understand the specific steps and requirements involved.

Leasehold vs. Freehold

Vietnam operates on a leasehold system for foreign buyers. You own the building but the land is leased from the state. Foreigners lease land from the state under a long term leasehold arrangement usually with an initial term of 50 years. This leasehold agreement is for 50 years. Vietnamese citizens are granted indefinite land-use rights.

Resale vs. Off-Plan Properties

You have the choice between buying a property directly from a developer before it’s completed (off-plan) or buying it from an existing owner (resale). Off-plan properties can offer attractive pricing and payment schedules but carry risks related to construction delays or developer reliability. Resale properties provide more certainty about the finished product but may come at a higher price. When buying a resale property, the property transfer process involves legal procedures to update ownership records and you will need to pay property transfer tax and capital gains tax if you are selling the property for a profit.

Buying Property in Vietnam Process

A structured approach is key to a smooth and secure transaction. Understanding the buying process is crucial as it helps buyers navigate legal requirements, due diligence and negotiations. For certain types of property investment like participating in development projects, an Investment Registration Certificate is required. Partnering with professionals is not just recommended; it’s a necessity.

Step-by-Step Transaction Process

1. Due Diligence: Once you have selected a property, the first critical step is to do due diligence. A lawyer can verify the seller’s ownership certificate, check the project’s legal status and confirm it’s approved for foreign buyers. Also check the land registry to verify the property’s legal status, restrictions and any charges against it.
2. Reservation Agreement: To secure the property you’ll sign a reservation agreement and pay a deposit which is usually refundable.
3. Sales and Purchase Agreement (SPA): The next step is to sign the formal SPA. This is a legally binding contract that should be reviewed thoroughly by your lawyer and notarized.
4. Payment: Payments are made in installments according to the payment schedule outlined in the SPA.
5. Ownership Certificate: After all payments and handover of the property, the final step is to apply for and receive the Certificate of Land Use Rights and Ownership of House and Other Land-Attached Assets, commonly known as the “pink book.”

After these steps the property transfer process involves completing all legal procedures, updating ownership records and transferring ownership rights.

Documents Required

To buy a property you’ll generally need a valid passport with a Vietnamese entry stamp. For certain types of property investment like participating in property development projects an investment registration certificate may also be required. The seller must provide the property’s ownership certificate and related legal documents for the project.

Role of Real Estate Agents and Lawyers

Engaging an experienced, bilingual lawyer is highly recommended to protect your interests. They can manage due diligence, review contracts and ensure all legal requirements are met. A reputable real estate agent can help you find suitable properties and navigate the local market. Using property websites to research listings and trends in the Vietnamese real estate market is also essential especially for real estate investors looking for opportunities and up-to-date information.

Costs & Taxes

Strategic financial planning means looking beyond the sticker price to understand the total investment required. Property cost and purchase price in Vietnam can vary greatly depending on the buyer’s financial capability as there is no fixed minimum investment – buyers should assess their own financial situation to determine what is affordable and suitable for them.

Property Price vs. Actual Cost

Upfront costs range from 13–18%, including 10% VAT on new properties, 0.5% registration tax, and notary fees (Bamboo Routes, 2025). A 2% Personal Income Tax (PIT) applies to resale profits, covering any capital gains (Global Property Guide, 2024). Per Decree 95/2024, goods below $3 may be exempt from certain taxes, easing costs for smaller transactions.

Registration Fees, Notary, VAT, Personal Income Tax

• Value Added Tax (VAT): 10% VAT applies to new properties purchased from a developer.
• Registration Tax: 0.5% tax on the property value to register the ownership.
• Notary Fees: Minor, typically based on the property’s value.
• Personal Income Tax (PIT): 2% PIT when you sell the property.
• Property Transfer Tax: This tax is required during the legal transfer of a property’s ownership. It’s a percentage of the property’s value and necessary to complete the transaction according to Vietnamese law.
• Capital Gains Tax: When reselling or leasing a property, a capital gains tax may apply to the profit made from the property’s sale. This tax is usually calculated based on the difference between the property’s purchase price and selling price, affecting the overall return on investment.

Maintenance & Management Fees

For condominiums, a one-time maintenance fee or “sinking fund” of 2% of the pre-tax property price. And monthly management fees for common areas and facilities. These fees may vary depending on the property type and location.

Financing Property in Vietnam

Can Foreigners Get Mortgages?

Getting a mortgage from a Vietnamese bank as a non-resident is difficult and often requires a work permit and proof of local income. Eligibility for mortgage loans from Vietnamese banks may also depend on the property type as certain types of property can affect the approval process and loan terms for foreigners. Some international banks in Vietnam like HSBC may offer loans to qualified foreign clients but eligibility is strict. Most foreign buyers buy property with cash.

Alternative Financing Options

Some developers offer their own payment plans that can spread the cost over the construction period. Another option is to secure financing from a bank in your home country but this depends entirely on that bank’s policies. The choice of financing method often depends on the buyer’s financial capability and the availability of foreign capital for property investment in Vietnam.

Currency & Transfer Considerations

All property transactions in Vietnam must be done in Vietnamese Dong (VND). You will need to consider currency exchange rates and the process for transferring funds into Vietnam to buy and repatriate funds when you sell. Vietnam’s policies are designed to attract foreign capital so it’s easier for international investors to participate in the market. Plus the country offers many benefits such as strategic location, investment incentives and growing infrastructure making it an attractive destination for foreign investors.

Where to Buy Property in Vietnam

Where you invest is as important as how you invest. Vietnam’s cities offer different strategic advantages. Property prices in Vietnam’s major cities like Ho Chi Minh City and Hanoi are generally lower than many other Asian countries so they are attractive for investors. Understanding property prices in these major cities is crucial when planning to buy or invest.

• Ho Chi Minh City: One of Vietnam’s busiest cities and the country’s economic engine, HCMC has high rental demand and strong potential for capital appreciation especially in District 2 (including the new Thu Duc City) and District 7.
• Hanoi: The capital is a stable market, popular with diplomats and expatriates, offering consistent rental yields. Property prices in Hanoi are competitive so Vietnamese property in the capital is attractive to both local and foreign buyers.
• Da Nang, Nha Trang, and Coastal Cities: These cities are hotspots for tourism related properties like condotels and vacation homes, blending lifestyle with investment.

When comparing major cities, property prices and investment opportunities can vary greatly, with busy cities like Ho Chi Minh City often commanding higher prices but also greater returns.

Risks and Things to Watch Out For

A forward thinking strategy includes robust risk management. When buying property or investing in Vietnam’s real estate market you need to be aware of the legal and financial risks involved including foreign ownership restrictions, legal hurdles and market specific challenges.

Ownership Misunderstandings

The most common misunderstanding is the nature of leasehold ownership. It’s important to understand that you are buying the structure for 50 years not the land itself. Renewal of the lease while possible is not guaranteed and depends on government discretion at the time. As a foreign owner property investment in Vietnam allows you to own real estate but it does not grant permanent residency or any direct pathway to long term residency status.

Legal Loopholes

The legal framework is still developing and regional interpretations of laws can sometimes vary. According to NT Partner Law Firm, it’s important to understand the regulations around foreign ownership limits and transaction procedures to ensure a smooth transaction. For any foreign investor understanding Vietnamese law and property laws is crucial to avoid legal pitfalls and ensure compliance throughout the process. This is why a qualified lawyer is necessary to verify every detail of the transaction.

Common Scams or Red Flags

Be wary of developers with a bad track record or projects without proper permits. A major red flag is any seller or agent who rushes you or discourages legal review. As part of your due diligence always check the land registry and review title deeds to confirm the legal status and any restrictions on the property. Also use reputable property websites to research and verify the legitimacy of real estate in Vietnam before committing. As mentioned in a 2024 article by Vietnam Briefing a draft decree for the new Housing Law aims to clarify the criteria for projects eligible for foreign ownership which should help reduce ambiguity.

Alternatives: Leasing or Long-Term Rentals

When Leasing Is a Better Option

If you are not ready for a long term financial commitment or if your stay in Vietnam is temporary, leasing is a far more flexible and less capital intensive option. It allows you to enjoy the lifestyle without the legal and financial responsibilities of ownership. Also foreigners can lease land for up to 50 years and the choice of property type – apartments or houses – can further enhance the flexibility and attractiveness of leasing for some buyers.

Rental Agreements and Tenant Rights

Rental agreements are straightforward and tenant rights are generally well protected. Standard leases are usually 1-2 years and require a security deposit. However rental agreements and tenant protections may vary in residential projects especially for properties foreigners are allowed to lease due to specific regulations and ownership restrictions.

Conclusion

Is Property Investment in Vietnam for You?

Vietnam is an attractive opportunity for investors who are willing to do their homework. Its strong economic growth, growing middle class and improving legal transparency are the fundamentals. For those with a long term vision the potential for high rental yields and capital appreciation is a tide that can lift all boats. But note that property investment in Vietnam does not grant permanent residency or Vietnamese citizenship; alternative pathways to permanent residency exist and should be considered. The key is to approach the market with strategic insight and professional guidance.

Ready to unlock your growth potential in one of Asia’s most dynamic markets? Partner with us to turn challenges into wins, because when it comes to securing your next breakthrough the only way is forward.

You might also like: Vietnam Real Estate Market Overview (2025): Trends, Forecasts & Regulatory Insights

 Ready to enter one of Asia’s most dynamic real estate markets? As a business consultant with over twenty years’ experience advising on foreign direct investment—and well-versed in Vietnam’s Investment Law and FDI regulations—I’ve guided countless investors through the legal and procedural complexities on the ground in Vietnam, China, and Malaysia. Vietnam consistently ranks among the most promising destinations—its commercial and cultural hubs, Hanoi and Ho Chi Minh City, attract investors under clear legal frameworks governing foreign property ownership. For foreigners and expats looking to invest, the real estate sector is the direct gateway to this growth story but success requires a clear strategy.

Vietnam has been actively trying to attract foreign capital, with government policies and incentives to create a favorable investment environment for international investors.

2025 Key Points:

• The Door is Open, With Clear Rules: Foreigners may acquire leasehold interests under the amended Housing Law (effective Jan 1, 2025), which mandates detailed seller disclosures and enhances transparency for overseas buyers.
• Leasehold, Not Freehold: Under Clause 3, Article 188 of the 2025 Land Law, land remains state‑owned; foreigners receive 50‑year leaseholds (renewable once) on structures and use rights only—full land ownership remains prohibited.
• Due Diligence is Essential: Verify the “pink book” land‑use certificate, confirm developer licensure under the Law on Real Estate Business 2024, and ensure project zoning approvals before committing funds.
• Hire Qualified Professionals: Retain a Vietnamese‑licensed real estate lawyer (per Circular 16/2023/TT‑BTP), plus a vetted agent—only they can navigate title registration and FDI compliance.
• Stick to Approved Developments: Target developments explicitly authorized for foreign sales—condominiums (max 30% foreign‐ownership quota) or villas in projects with Ministry of Construction approval.

Vietnam Real Estate

Vietnam’s real estate market has become the hot spot for foreign investors looking for growth and diversification in Southeast Asia. The country’s dynamic economy, rich culture and beautiful landscapes have made property in Vietnam more and more desirable for both lifestyle and investment purposes. For foreign buyers understanding the Vietnamese real estate market is crucial – especially the changing laws around foreign property ownership.

The Vietnamese government has taken many steps to attract foreign investment including simplifying the process for getting investment registration certificates and relaxing the restrictions on foreign ownership. With the right guidance and clear understanding of the legal framework buying property in Vietnam can be a rewarding experience and access to one of Asia’s most promising real estate markets.

Vietnam Property Market Overview

The Vietnamese property market is growing rapidly driven by urbanization, a growing middle class and steady foreign investment. Major cities like Ho Chi Minh City and Hanoi are at the forefront with high demand for both residential and commercial properties pushing up property prices. The Vietnamese real estate market offers a wide range of opportunities from luxury real estate developments to more affordable apartments and commercial spaces catering to all types of investors. Foreign investors are attracted to the market’s potential for capital appreciation and rental income with the ability to buy apartments, houses and villas under clearly defined ownership terms. As the market matures Vietnam is the destination for those looking to invest in real estate in a growing economy.

Can Foreigners Buy Vietnamese Property?

Yes, they can. The opportunity for foreign investment in Vietnamese real estate is clear and established. According to Vietnamese law foreigners can buy property in Vietnam but there are specific regulations and restrictions on the types of properties and the legal framework for ownership. Let’s break down the legal foundation for how foreigners buy real estate in Vietnam.

Legal framework (2025 Housing Law update)

 The 2015 Law on Housing first allowed foreign property purchases; now, the amended Housing Law and Law on Real Estate Business (effective Jan 1, 2025) further clarify foreign‑ownership terms, impose stricter licensing under Decree 02/2025/NĐ‑CP, and raise qualifications for real estate agents to boost market integrity.

As a detailed 2024 analysis from law firm Tilleke & Gibbins points out on Lexology, these updates aim to create a more transparent and stable market by clarifying rules for property development and foreign investment. This is a good news for international investors.

Ownership types: Leasehold vs Freehold

Key point: Vietnam’s leasehold model grants foreigners up to a 50‑year right to structures (renewable once—Clause 3, Article 188, Land Law 2025). This covers only the building and use rights; land remains state property. No foreigner may hold freehold title to land.

The lease land arrangement allows foreign investors to secure use of the property for up to 50 years with possibility of renewal but with certain limitations on transfer and inheritance. Think of it as a long term right to the asset and the land it sits on which is a common model in many parts of Asia.

Who qualifies? (expats, overseas Vietnamese, legal entities)

Under Article 5, Housing Law 2025, eligible buyers include:

1. Foreign individuals holding valid entry visas or residence permits.
2. Foreign‑invested enterprises, branches, or rep‑offices with an Investment Registration Certificate.
3. Overseas Vietnamese (Viet Kiều), who enjoy near‑equal ownership rights—but note that only Vietnamese citizens may register residence and access land‑use incentives.

Step-by-Step Guide to Investing in Vietnam Real Estate

A disciplined process is the key to turn opportunity into a successful investment. Understanding the purchase process is essential to avoid risks and ensure a smooth transaction. Here is a proven roadmap.

Step 1 – Check eligibility and investment goals

 • Verify Eligibility: Confirm visa or residence status per Immigration Law 2024.
• Investing as an individual or through a company?: If investing via a legal entity, secure an Investment Registration Certificate under Law on Investment 2020 (amended 2025).
• Define objectives: Rental income, capital gain, vacation use, or business base. These will determine your property choice.

Step 2 – Choose your property type (residential, commercial, industrial)

Your investment goals will point you to the right segment. Residential condos are the most straightforward for individual investors. However foreign ownership within residential projects is subject to specific quotas and legal restrictions that limit the number of units foreigners can own in these developments. Commercial or industrial properties are good options for those looking to invest through a legal entity to support business operations.

Step 3 – Work with a licensed agent or law firm

Don't go it alone. Partnering with a reputable, licensed real estate agent and an experienced lawyer is a non-negotiable, risk-free strategy. For legal advice, it's crucial to retain a real estate lawyer licensed under Circular 16/2023/TT-BTP. To find property and navigate the market, an agent registered with the Ministry of Construction (per Decree 02/2025/ND-CP) can offer valuable expertise, connections, and regulatory knowledge. They are your eyes and ears on the ground, protecting your interests and helping you find the right property and negotiate deals.

Step 4 – Due diligence on title, developer and zoning

This is where you go big or go home on your research. Your lawyer must verify the property’s “pink book” (ownership certificate), confirm the developer’s track record and legal standing and ensure the project is fully permitted and zoned for foreign ownership.

As part of due diligence, it’s essential to verify the legal status of the property, including checking for any restrictions or charges registered against it. Always check the land registry to confirm legal ownership and uncover any encumbrances before making a purchase.

Step 5 – Sign purchase agreement and complete transaction

Once due diligence is complete you will typically sign a reservation agreement to secure the unit with a deposit. This is followed by the formal sales and purchase agreement which is a legally binding contract outlining the purchase price, payment schedule and transfer of ownership. Make sure your lawyer reviews every clause before you sign and the document is notarized. The payment schedule in the sales and purchase agreement is crucial as it outlines the timing and amount of each installment, often coordinated with mortgage arrangements and legal requirements.

Step 6 – Get your pink book

After the final payment and handover, the last step is to apply for and receive your pink book. This is the ultimate proof of your ownership rights to the property. The pink book is the official document of the property’s ownership and status.

What Kind of Property Can Foreigners Buy?

You have your options clear but specific. Under Vietnamese law, international buyers can buy property from foreign property owners, so the market is open to a wider range of investors. Foreign investments have shaped the types of properties available to foreigners, especially in commercial projects.

• Condos in approved commercial projects: This is the most popular and easiest route. Foreigners can own up to 30% of the units in a single condo building. Property owners, including foreigners, can sell or transfer their property to other eligible buyers.
• Villas and landed houses (limited under quota): You can also buy villas and townhouses but only within a commercial development project. The foreign ownership quota for these is 10% of the properties in a project or 250 houses in a ward-level administrative area.
• Industrial and commercial property (via legal entity): To invest in standalone commercial or industrial property, you need to set up a foreign-invested company in Vietnam.

Investing in Land as a Foreigner

For foreign investors interested in land, Vietnam offers opportunities and challenges. Foreigners can’t own land directly but can secure long-term investment through leasehold agreements, up to 50 years with the possibility of renewal. The process starts with an investment registration certificate from the Vietnamese government, a crucial step to ensure your investment is recognized and protected.

You need to navigate local building regulations and property laws to avoid legal pitfalls and comply. Research the local market, including land prices, property values and rental yields, to make informed decisions. By understanding the leasehold structure and complying with the laws, foreign investors can participate in the real estate in Vietnam and benefit from the growing property market.

Costs and Taxes for Investors

A good financial plan accounts for all costs, not just the purchase price.

• Purchase price vs hidden fees and property cost comparison: The price on the contract is just the start. When considering property cost in Vietnam, compare the price per square metre to other countries. Vietnam is often cheaper but you should also budget for international transfer fees which can add up.
• Taxes: VAT, registration, personal income tax:
• Value Added Tax (VAT): 10% on developer‑sold new properties (per Law on VAT 2008, amended 2024).
• Registration Fee: 0.5% of contract value, per Circular 123/2024/TT‑BTC.
• PIT on resale: 2% of the transfer price under Decree 65/2024/NĐ‑CP.
• Maintenance, property management and rental taxes: For condos, there is a one-time 2% maintenance fee (sinking fund). Expect monthly management fees. If you rent out the property, you will be subject to rental income tax.

Financing Your Investment

Can foreigners get a mortgage in Vietnam?

Getting a mortgage from a local Vietnamese bank as a non-resident foreigner is difficult. Some international banks like HSBC may offer loans to expats with a work permit and local income but requirements are strict. Mortgage eligibility and terms vary depending on property type, location and residency status.

Cash payments and fund transfers

Most foreign buyers use cash. You will need to transfer funds into a Vietnamese bank account to make the purchase as all property transactions must be in Vietnamese Dong (VND). Understanding currency conversion and international bank transfer process is crucial.

Bank recommendations (HSBC, Vietcombank, SCB)

Reputable international banks like HSBC or major local banks like Vietcombank are generally good options to open an account to handle the transaction.

Best Places to Invest in Vietnam (2025)

Location is key. Vietnam Briefing’s 2024 outlook confirms the country as a prime investment destination, highlighting several key areas.

• Ho Chi Minh City:  Avg. USD 2,000–3,000/m² (District 2), yields ~5–8% (JLL Q1 2025).
• Hanoi: 5–7% rental yields in Tay Ho, per CBRE March 2025 Outlook.
• Da Nang, Nha Trang: Tourism-driven condotels with 6–8% returns.
• Binh Duong, Bac Ninh: Industrial zones with USD 25.4B FDI and 10% CIT incentives for high-tech projects.

To research properties in these investment areas, property websites are the primary source and should be used in conjunction with local agents and networks.

Property Management for Foreign Investors

Effective property management is key to maximizing returns and protecting your investment in the Vietnamese real estate market. For foreign investors, working with a reputable real estate agent or property management company can simplify the process of finding reliable tenants, collecting rent and maintaining the property to high standards.

Stay informed about your tax obligations, such as the property transfer tax, to ensure compliance with local regulations. Monitor the local market—track property prices, rental income and land prices—to make informed decisions and adapt to changes. By using professional property management services and staying on top of legal and financial responsibilities, foreign investors can navigate the Vietnamese real estate market with confidence and achieve long-term success with their property investments.

Legal & Regulatory Tips for Safe Investing

How to avoid scams and unclear land titles

Your best defense is due diligence. As advised by the property experts at Best Real Estate HCM, always ask to see the master title deed for the entire project. Work only with established developers and don’t rush into a transaction.

Why using a real estate lawyer is essential

A lawyer’s role goes beyond reviewing a contract. They verify all legal documents independently, protect your interests during negotiations and guide you through the ownership registration process. This is the foundation of a risk-free investment.

Latest changes in land, housing and foreign investment laws (2024–2025)

Stay updated on the new laws taking effect in 2025. These reforms are for your benefit, increasing transparency and predictability. The latest changes also impact real estate investment opportunities and clarify legal requirements for foreign investors, making it easier to understand the process and limitations. They are the government’s commitment to making Vietnam a more attractive and secure FDI destination.

Conclusion

Process summary

Investing in Vietnam real estate follows a clear legal roadmap:

1. Verify visa or corporate eligibility (Immigration Law 2024; Investment Law 2020).
2. Define goals—income, appreciation, or business base.
3. Select pre‑approved projects (ministry‑approved).
4. Conduct title and developer due diligence (Housing Law 2025).
5. Complete the sales contract, notarization, and registration (Land Law 2025).
6. Secure your pink book (Certificate of Land Use & Ownership).

Pros and cons of investing in Vietnam

The biggest benefit is the potential returns, with one of the fastest growing economies in the world. The economic wave is lifting all boats, creating strong demand and capital appreciation. The biggest risks are regulatory misunderstandings and market fluctuations. But with the new laws and a disciplined approach, these risks can be managed.

Invest in tomorrow’s breakthrough, today. Work with us to turn market challenges into winning strategies—because when it comes to your future growth, there’s only forward.

You might also like: Buying Land in Vietnam in 2025: Navigating Land‑Use Rights Without Surprises

With a trio of new laws governing Land, Housing, and Real Estate Business set to take full effect, the old rulebook isn't just being updated, and it's being rewritten entirely. While this transition promises a more transparent market, it also introduces a higher level of demand and complexity. 

This shift clearly separates the prepared investor from the unprepared, creating immense opportunity for one and significant risk for the other.

I. Introduction To Vietnam’s Real Estate Market

Vietnam’s real estate market has rapidly transformed over the past few years, emerging as a hotspot for foreign investors seeking both growth and stability. 

Affordable property prices, especially when compared to many countries in the region, have made Vietnam’s major cities like Ho Chi Minh City and Hanoi particularly attractive. The country’s robust economy, fueled by rising income levels and a young, dynamic population, has led to a surge in demand for properties across various segments. 

Investors are drawn not only by the potential for capital appreciation but also by Vietnam’s abundant natural resources and strategic location in Southeast Asia. Whether you’re looking for a modern apartment, a traditional house, or a commercial property, the Vietnamese real estate market offers a diverse range of options to suit different investment goals. 

As a result, buyers and investors are increasingly viewing Vietnam as a prime destination to capitalize on the country’s ongoing economic growth and favorable investment climate.

II. Land Is Getting Pricier And More Transparent

The single biggest change investors must prepare for is the end of the state-controlled land pricing framework for most calculations. 

From our work with over 3,000 consulting projects, we’ve learned that underestimating land acquisition costs is one of the quickest ways to derail a project budget. The new laws aim to close the gap between official prices and actual market value.

It is essential for investors to verify land prices and all related costs under the new market-based system before finalizing any investment decisions.

1. Market-Based Land Valuation Becomes The Standard

According to an analysis of Law No. 31/2024/QH15 on Land (2024), the new legislation mandates that land valuation must now reflect market prices. This is a monumental shift. 

Previously, administrative pricing kept official costs artificially low, but now, investors must budget for valuations that mirror reality. 

This impacts everything from land use fees and taxes to the compensation costs for site clearance. The practical approach that works across cultures is to build these higher, more realistic costs into your financial models from day one.

Additionally, the time required for updated land valuations and obtaining related approvals can affect overall project timelines, so it is important to factor these timing considerations into your planning.

2. Easier Transfers Of Agricultural Land

The reforms also signal a shift in how agricultural land can be used. The new Land Law makes it easier to transfer and consolidate agricultural land, with the area (size) of the land being a key factor in these decisions, directly impacting pricing and investment potential. 

This creates pathways for its conversion to industrial or urban use. This mirrors trends we have seen in other ASEAN markets like Indonesia, where industrial land expansion is a government priority. 

This opens strategic opportunities for investors who can identify high-potential conversion sites early.

3. Public Disclosure Of Land Use Plans

Transparency is a core theme of the reforms. Provincial and district-level land use plans must now be publicly disclosed. 

For investors, this is a powerful tool. Having access to official planning data allows you to align your strategy with government development goals, positioning your investments in areas primed for infrastructure growth and appreciation long before the projects break ground.

Investors are advised to follow official news channels for timely updates on public land use plans and related regulatory changes.

III. A Smarter, More Accessible Housing Market

The reforms extend beyond land to create a more structured and secure housing market for both developers and buyers. The focus is on protecting consumers and encouraging sustainable development rather than short-term gains, ultimately helping buyers and developers create a more secure path to home ownership.

1. Stronger Push For Social Housing

The 2023 Housing Law, which an insight from Baker McKenzie suggests may take effect earlier than its official 2025 start date, introduces significant incentives for developers to invest in social housing. These include exemptions on land use fees and access to preferential financing. 

From a policy perspective, this is a clear signal that the government is committed to creating affordable housing, presenting a stable, policy-supported segment for long-term investors. Social housing is positioned as a key solution to address affordable housing shortages in Vietnam.

2. Expanded Rights For Foreign Buyers

Vietnam is further opening its doors to foreign investment in property. According to a report by Vietnam Briefing (2024), the draft decree for the new housing law clarifies and expands property ownership rights for foreign entities and individuals. 

These changes are expected to attract more foreign capital into Vietnam’s real estate market. This move is set to boost demand, particularly in the high-end and luxury segments in major hubs like Ho Chi Minh City and Hanoi. 

However, it’s critical to understand the nuances. For example, our work with Synergis International on their market entry M&A showed us that even with liberalized laws, the complexities of transaction structures require expert legal navigation to ensure full compliance.

3. Safer Real Estate Transactions

To curb risks associated with pre-construction sales, the new Law on Real Estate Business tightens the rules for selling future-formed housing. 

Developers must now have all necessary permits and meet financial obligations before collecting deposits. 

Under these new regulations, buyers are now required to sign clear, regulated agreements typically one for the land and one for the home to ensure transparency and protection. This improves buyer protection and reduces the risks that have historically plagued the off-plan market, fostering greater trust.

IV. The Paused 20% Profit Tax: A Signal of Future Market Regulation

Beyond the laws taking effect in 2025, it’s crucial for investors to watch the policy signals that indicate future direction. 

A perfect example was the proposed 20% tax on real estate transfer profits, a move that, as reported by Vietnam News (2024), immediately sparked significant investor concern. 

From a policy perspective, the objective was clear: to curb the short-term speculative "surfing" that can create market bubbles and instead encourage long-term, stable investment.

However, from my experience across ASEAN markets, the practical reality of such a tax is more complex. A significant tax on profits often gets passed down to the end buyer, which could have inflated final selling prices as sellers moved to protect their margins. 

While the Ministry of Finance has wisely withdrawn the proposal for further study citing the lack of a transparent data system to calculate profits accurately and investors should not ignore it. 

The fact that it was seriously considered signals the government's long-term intention to regulate the market more tightly. Think of it as a clear preview of future policy priorities aimed at ensuring sustainable growth over speculative gains.

V. Property Type Considerations In 2025

When evaluating opportunities in Vietnam’s real estate market in 2025, understanding the different property types is essential for making informed investment decisions. 

Apartments in high-rise developments are especially popular in major cities like Hanoi and Ho Chi Minh City, offering residents access to amenities such as swimming pools, gyms, and communal spaces. These features appeal to both local buyers and foreign investors seeking convenience and lifestyle benefits. 

On the other hand, houses and villas provide greater privacy and space, making them ideal for families or those looking for a more exclusive living environment. 

The location of a property remains a key factor influencing both demand and price, properties situated in central districts or near business hubs tend to command higher prices due to their proximity to essential services and employment centers. 

As the demand for properties continues to rise, investors should carefully assess the advantages of each property type, considering factors like amenities, location, and long-term value to ensure their investment aligns with their goals in Vietnam’s evolving real estate market.

VI. Real Estate Agencies And Services: Navigating The New Landscape

Navigating Vietnam’s real estate market has become increasingly streamlined thanks to the emergence of modern real estate agencies and services tailored to the needs of both local and foreign investors. 

These agencies offer a comprehensive suite of services, from property valuation and marketing to facilitating sales and handling legal documentation. 

For foreign investors, in particular, working with a reputable agency can be invaluable in understanding local regulations and ensuring a smooth transaction process. The rise of online platforms has further simplified the search for properties, allowing buyers and investors to browse listings, compare prices, and even take virtual tours of homes from anywhere in the world. 

As the market continues to evolve, it’s crucial for buyers and investors to stay informed about the latest trends and to partner with experienced professionals who can provide expert guidance and support throughout the investment journey. 

By leveraging these services, investors can confidently navigate the complexities of Vietnam’s real estate market and make well-informed decisions.

VII. Popular Cities For Investment

Vietnam’s major cities like Ho Chi Minh City, Hanoi, and Da Nang stand out as top choices for real estate investment, each offering unique advantages for buyers and investors. 

Ho Chi Minh City, the country’s economic powerhouse, boasts a vibrant property market driven by strong demand, modern infrastructure, and a thriving business environment. 

Hanoi, the capital, combines historical charm with rapid urban development, making it a magnet for both residential and commercial investments. 

Da Nang, known for its beautiful coastline and growing tourism sector, is increasingly attracting attention from investors seeking opportunities in both hospitality and residential properties. 

Additionally, the Vietnamese government has introduced various policies and incentives to encourage foreign investment in these cities, further enhancing their appeal. 

As the economy continues to expand and demand for properties rises, these major cities are expected to remain at the forefront of Vietnam’s real estate market, offering promising prospects for those looking to invest in the country’s future.

VIII. Strategic Investment Considerations For 2025

There are several key reasons why investors need to adapt their strategies in response to the 2025 reforms. Navigating this new environment requires a shift in strategy. 

The difference between successful and failed market entries from this point forward will be the ability to adapt to a more transparent and regulated system.

1. Cost Modelling In A Higher Price Environment

With market-based land valuation, your financial projections need to be rigorously updated. Investors should also account for the structure and availability of loans, including separate loans for land and construction, when updating their financial models. 

The old assumptions are no longer valid. In our experience, the most successful investors will be those who engage in detailed cost modeling that accounts for these new legal cost structures, ensuring their ROI projections remain realistic.

2. Compliance As An Investor Differentiator

In a market defined by transparency, deep compliance becomes a competitive advantage. The investors who can demonstrate a mastery of the new legal requirements will find their projects moving more smoothly through the approval process. 

The project for FacCo Hong Kong taught us this lesson well. By focusing on a compliant nominee registration and share transfer strategy, we reduced their establishment timeline by 89% from a projected three months to just ten days. This is the power of turning regulatory knowledge into a strategic asset.

Continuous study of evolving regulations is crucial for maintaining a compliance advantage.

IX. Economic Outlook For 2025

Looking ahead to 2025, Vietnam’s economic outlook remains highly positive, with the real estate market poised to play a pivotal role in the country’s continued growth. 

The combination of increasing foreign investment, a burgeoning middle class, and sustained demand for properties, especially in major cities suggests that property prices will remain on an upward trajectory. 

Affordable property prices compared to many countries in the region continue to attract both local and international buyers, while the government’s commitment to economic reform and infrastructure development further strengthens the investment climate. 

As the market evolves, investors and buyers must stay alert to new trends and regulatory changes to maximize their returns and minimize risks. With its dynamic economy, rising demand, and diverse property offerings, Vietnam is set to remain a leading destination for real estate investment in 2025 and beyond.

X. Conclusion: Playing The Long Game In Vietnam’s Real Estate

The landscape of Vietnamese real estate is fundamentally shifting from one of speculative, short-term gains to one that rewards strategic, long-term investment. 

These reforms while adding layers of cost and complexity are ultimately building a more stable and predictable market for serious international players. 

From our experience across ASEAN, these are the hallmarks of a maturing market. Success is no longer about who gets in the fastest, but who builds the most resilient and compliant foundation for growth.

Navigating this transition requires more than just reading the new laws; it requires a deep understanding of how they are implemented on the ground. 

The difference between a successful market entry and a stalled one often comes down to the strategic guidance you receive from day one. 

If your organization is planning its next move in Southeast Asia, our team at Viettonkin Consulting can help you turn these regulatory complexities into a competitive advantage. 

We leverage insights from over 3,000 successful projects to build FDI strategies that are not only compliant but also operationally effective for the long term.

Within the ever-evolving sphere of Vietnam's real estate, discerning foreign investors unearth abundant opportunities for property investment. As we delve into revenue sources and tax considerations, a profound understanding of the market becomes crucial. This introduction lays the groundwork for exploring Vietnam's real estate landscape, illuminating the rights and obligations of foreign investors, and navigating the tax intricacies necessary for well-informed investment real estate decisions in this thriving market.

Real Estate Landscape and Investment Climate for Foreign Investors

Foreign Investment in Vietnamese Real Estate

As of July 2023, Vietnam has become a magnet for global investors, attracting over 37,500 projects with a cumulative investment exceeding $450 billion. Notably, the real estate sector boasts 1,100 projects, totaling $66.4 billion, constituting a substantial 15% of total foreign investment. At an international conference on the development potential of the Vietnam real estate market, Mr. Nguyen Anh Tuan, Deputy Director of the Foreign Investment Agency, highlighted real estate as the most enticing field for foreign investors in Vietnam. With 48 countries involved, Singapore, Korea, the British Virgin Islands, and Japan lead the way, and Ho Chi Minh City emerges as the frontrunner among 45 provinces/cities. Noteworthy projects, like the Ho Tram project in Ba Ria-Vung Tau and the smart city in Hanoi, showcase the sector's vibrancy.

Advantages Drawing Foreign Investors to Vietnam

The allure of Vietnam for foreign investors in real estate is multifaceted. Political stability, safety, robust economic growth, competitive production costs, abundant human resources, a promising market, and a strategically favorable geographical location are among the key attractions. Additionally, Vietnam's extensive coastline provides opportunities for resort real estate, while substantial infrastructure investments further enhance the nation's appeal.

Evolving Policies and Legislative Framework

Amid global economic shifts, the Vietnam Real Estate Brokers Association emphasizes the need for agile adjustments to foreign investment policies. Recommendations include creating a competitive and open investment environment, reviewing and supplementing land resources, enhancing power infrastructure, and developing supporting industries. The 15th National Assembly's recent passage of amended laws, including the Law on Housing and the Law on Real Estate Business, demonstrates Vietnam's commitment to fostering a conducive environment for foreign real estate investors.

Revenue Sources from Real Estate for Foreign Investors

Investing Trends and Lucrative Markets

Foreign Direct Investment (FDI) projects in Vietnam's real estate market showcase a sustained interest among foreign investors. Mr. Nguyen Anh Tuan, Deputy Director of the Foreign Investment Agency, notes that Vietnam's large population and strong urbanization trend make its real estate market attractive. Specifically, residential and office real estate gain prominence, driven by increasing customer demand and reasonable property prices in major cities like Hanoi and Ho Chi Minh City.

Diverse Avenues for Profit

Foreign investors in Vietnamese real estate discover diverse revenue streams, fueling a lucrative venture. The primary source, rental income, capitalizes on the high demand for quality residential and commercial spaces, especially in key cities. Rental markets in Ho Chi Minh City and Hanoi offer promising opportunities, ensuring a steady income stream for investors.

Beyond rentals, investors can tap into substantial capital gains by investing strategically in appreciating properties. The growing middle and upper-class demographic, coupled with rapid urbanization, ensures a sustained boost in housing demand. As property values appreciate in strategic locations, investors stand to benefit from considerable returns on their portfolios.

Exploring Development Opportunities

Profit opportunities for foreign investors extend to engaging in property development projects. Strategic participation in upcoming projects allows investors to leverage Vietnam's dynamic real estate market. Investing in new residential or commercial developments aligns seamlessly with the evolving needs of the Vietnamese market.

Moreover, the resort real estate segment, especially in destinations like Phu Quoc, Nha Trang, and Phan Thiet, presents enticing prospects for investors seeking to diversify their portfolios. Additionally, the emerging healthcare real estate segment offers a novel opportunity for FDI investors with foresight and adaptability. As Vietnam's real estate market continues to evolve, these diverse revenue streams provide a solid foundation for foreign investors to explore and capitalize on the country's growing opportunities.

Tax Rates and Implications for Foreign Investors

Scope of Real Estate Trading for Foreign-Invested Enterprises

Article 10 of the Law on Real Estate Business 2023 delineates the permissible forms and scope of business related to residential houses, construction projects, and land use rights with technical infrastructure within real estate projects. This regulation extends to the transfer of real estate projects and applies to organizations, individuals within the country, Vietnamese residing abroad, and organizations with foreign investment. The specified forms of business in this context are outlined as follows: 

• Investing in the construction of residential houses and construction projects for various purposes such as sale, lease, or lease-purchase.
• Engaging in the construction of technical infrastructure within real estate projects with the option for transfer, lease, or re-lease of land use rights that already have existing technical infrastructure. 
• Participating in the purchase or lease-purchase of residential houses, construction projects, or specific floor areas for subsequent sale, lease, or lease-purchase. 

These provisions under Article 10 offer a structured framework that allows diverse business activities in the real estate sector, promoting flexibility and opportunities for various entities involved.

Vietnam's Real Estate Tax Landscape

Vietnam maintains low real estate taxes compared to global standards, contributing only about 0.1% of the total budget revenue and less than 0.05% of GDP. The country primarily taxes non-agricultural land use, with rates varying based on usage and exceeding the limit. Notably, there is no tax on housing and other assets invested in land, posing attractive conditions for real estate investors.

Tax Implications for Foreign Property Owners

Notably, Vietnam's tax regulations treat foreign and local property owners equally. Foreigners owning rental properties in Vietnam adhere to the same tax regulations as Vietnamese citizens. This involves registering and paying taxes on rental income, with the obligation triggered when the annual aggregated rental income surpasses the 100-million-VND tax-free threshold. This equal treatment fosters transparency and consistency in Vietnam's real estate tax framework, providing foreign investors with a clear understanding of their tax obligations in the rental property sector.

Final Thoughts

As you delve into the dynamic realm of Vietnamese real estate, the significance of well-informed decisions in property investment becomes evident. From understanding the market landscape to exploring diverse revenue sources and navigating favorable tax conditions, the key to success lies in strategic choices. Transitioning seamlessly from these insights, Viettonkin emerges as your trusted partner, offering expert guidance in every aspect of real estate investment. Explore your potential with Viettonkin, where our seasoned team ensures your journey is not just guided but optimized for success. Connect with us for personalized consultations and comprehensive support.

Amidst the vibrant landscape of Hanoi, the realm of real estate unfolds with dynamic shifts and promising avenues. For potential investors, comprehending the intricacies of this market is not merely a choice; it's a strategic imperative. As we delve into the current state of Hanoi's real estate, we unravel trends, explore growth potential, and navigate through diverse property investment options like residential real estate, commercial real estate, and land investment. Join us on this illuminating journey where market insights metamorphose into informed decisions, guiding you through the evolving world of real estate in Hanoi.

Overview of the Real Estate Market in Hanoi

Current Market Trends

As of the third quarter of 2023, the nationwide real estate market maintains a subdued state, yet Hanoi stands out with relatively stable transaction rates and selling prices. Despite the absence of sudden growth, this stability signals optimism amid market challenges. Ministry of Construction statistics for the same period reveal 863 housing projects underway nationwide, with Hanoi hosting 48 projects, surpassing Ho Chi Minh City in higher-ranked projects. The primary market witnessed a notable 7% increase in apartment selling prices compared to the second quarter and a substantial 14% rise from the same period in 2022. In the secondary market, average sales prices reach approximately 32 million VND/m2, reflecting a 2.7% quarterly and 0.8% yearly increase. Looking ahead to 2024, the apartment market in Hanoi is anticipated to strengthen, with an estimated new primary supply of nearly 16,000 units. Foreign direct investment (FDI) in real estate is poised to increase, with a forecasted influx of projects from foreign investors. Despite the potential for rental exploitation, estimated at only 1% - 2% of the total investment value per year, the market remains buoyant. Real estate prices in suburban areas, including Dan Phuong, Dong Anh, and Hoai Duc, have witnessed a substantial 12-15% increase compared to the 2018-2019 period. The eastern region, particularly Gia Lam, is emerging as an improved housing market thanks to ongoing infrastructure projects. The fourth quarter of 2023 is expected to see new project-driven supply, and by 2025, Dong Anh is anticipated to lead with a 23% market share of future supply.

Potential Areas for Growth in the Next 3-5 Years

West: After the merger of Ha Tay into the capital, the Western real estate structure experienced a significant rise. Key traffic infrastructure developments such as Nguyen Trai road, Thang Long avenue, and Le Van Luong street catalyzed a boom in the Western Capital's real estate market. However, the potential for this area remains relatively limited, with noticeable vacancies along Highway 32. The West holds promise as satellite towns like Hoa Lac, Son Tay, and Xuan Mai are planned, with potential benefits from university relocations and the proposed Metro line 5 to Hoa Lac.

East: As part of the Northern key economic triangle of Hanoi - Hai Phong - Quang Ninh, the East is poised for urban expansion. While suburban areas in the East currently offer lower apartment prices, the region holds potential for investors over the next 5-10 years. However, the Eastern region, including Gia Lam and Dong Anh, faces challenges such as extended travel time to the inner city. According to Savills' report, the East has witnessed robust growth in the low-rise segment supply, increasing from 8% in 2014 to 15% in the first half of 2023. The East, including Gia Lam and Hung Yen, is perceived as a future hotspot, boasting a large land fund, diverse real estate supply, and substantial infrastructure development.

North: The Northern region, encompassing Dong Anh and Me Linh, is expected to be one of the most potential areas in the Hanoi real estate market. The North benefits from key infrastructure projects such as Ring Road 2 and Ring Road 3, Nhat Tan bridge, Thang Long bridge, and upcoming Tu Lien bridge. Additionally, planning for Metro line 6 and Metro line 2 contributes to the North's growth potential. Soc Son is anticipated to become one of Hanoi's five satellite urban areas.

South: The South, including Hoang Mai and Thanh Tri, holds advantages as a traffic gateway and benefits from the planned belt road system. However, predictions for the area's real estate market are comparatively modest. Despite being the least favored, the South is strategically important for Hanoi's urban planning, with expansion approved to 2050.

In this landscape, the East, with projects like Ecopark and Vinhomes Ocean Park, emerges as a rising star. The area's large land fund, integrated urban areas, and natural incentives position it as a potential new center for Hanoi, attracting both residents and investors. As Vietnam's supply chains grow, and jobs shift from the old city, the Eastern region is poised for significant real estate development and price appreciation over the next 5 years.

Real Estate Investment Options in Hanoi

Land Investment

The land investment landscape in Hanoi reflects stability in transaction activities, with selling prices holding steady or experiencing slight increases, particularly in areas with ongoing investments in transport and technical-social infrastructure. For instance, land in Nguyen Khe, Hai Boi, and Co Loa communes (Dong Anh district) ranges from 18 to 40 million VND/m2, displaying consistent pricing from the beginning of 2023 to the present. Conversely, areas like Kim Chung, Di Trach, and An Khanh (Hoai Duc district), undergoing infrastructure expansion with the construction of Ring Road 3.5, have witnessed a modest price uptick of 5 to 7%, reaching 65 to 75 million VND/m2.

Residential Properties: Apartments and Houses

Recent developments in the Hanoi real estate market reveal a substantial number of mid-high-end products in newly opened projects. A notable shift, especially in the third quarter of 2023, is the emergence of affordable housing segments priced between 25 - 35 million VND/m2. Despite challenges in the mid-high-end segment due to high prices and lower transaction volumes, the affordable segment has gained attention. The apartment segment, in particular, remains resilient, serving genuine housing needs. Market research indicates a 1% increase in demand for purchases and a significant 6% rise in rental demand compared to the second quarter. Apartments priced from 2 - 4 billion VND are particularly sought after, showing signs of robust absorption, especially in the central core area of the Capital.

Commercial Real Estate

Hanoi continues to lead the country in attracting foreign investment (FDI), securing nearly 2.53 billion USD in new grants and capital increases during the first nine months of 2023. The retail sector is witnessing notable expansions from prominent brands like Muji, Starbucks, and Central Retail, drawing attention from various fashion and cosmetics brands from China, Korea, and Japan. This surge in activity is anticipated to contribute to a more vibrant market in the first half of 2024, reflecting the capital's resilience and attractiveness to international investors and retail giants alike.

Pros and Cons Analysis of Each Option

Land Investment

Advantages:

• Potential for Appreciation: Land investment in Hanoi offers the potential for substantial appreciation, especially in areas with ongoing infrastructure development and urban expansion.
• Diverse Usage: Land can be used for various purposes, providing flexibility for investors to develop residential, commercial, or mixed-use projects based on market demands.

Disadvantages:

• Lack of Immediate Income: Unlike rental properties, land typically doesn't generate immediate income, and returns depend on the timing of development and market conditions.
• Regulatory Risks: Land investments are subject to regulatory changes, and investors must navigate zoning laws and development regulations, adding a layer of complexity.

Residential Properties: Apartments and Houses

Apartments’ advantages:

• Steady Rental Income: Apartments offer a consistent stream of rental income, making them attractive for investors seeking regular returns.
• Lower Maintenance: Compared to houses, apartments often require lower maintenance, with building management handling common areas and exterior upkeep.

Apartments’ disadvantages:

• Limited Outdoor Space: Apartments may lack private outdoor spaces, limiting their appeal to tenants who prioritize this feature.
• Market Saturation: In certain areas, the market for apartments can be saturated, leading to increased competition and potential challenges in rental pricing.

Houses’ advantages:

• Larger Living Spaces: Houses provide more significant living spaces and often include private yards, appealing to families and individuals seeking more space.
• Potential for Value Appreciation: Similar to land, houses can appreciate in value over time, offering potential returns upon resale.

Houses’ disadvantages:

• Higher Maintenance: Houses typically require more maintenance, and property owners are responsible for the upkeep of both the interior and exterior.
• Longer Vacancy Periods: Houses may experience longer vacancy periods between tenants, impacting the overall rental yield.

Commercial Real Estate

Advantages:

• Higher Rental Yields: Commercial properties generally offer higher rental yields compared to residential properties, providing attractive returns for investors.
• Diverse Investment Options: Commercial real estate includes a variety of options such as retail, office spaces, and industrial properties, allowing investors to diversify their portfolios.

Disadvantages:

• Economic Sensitivity: Commercial real estate is often sensitive to economic fluctuations, and economic downturns can impact occupancy rates and rental incomes.
• Higher Entry Costs: The initial investment required for commercial properties is typically higher than residential properties, posing a barrier to entry for some investors.

Final Thoughts

In dissecting Hanoi's ever-evolving real estate dynamics, gaining insights into market trends, growth prospects, and diverse investment options is essential. Astute decision-making is the linchpin for flourishing real estate ventures. As you navigate the landscape, trust Viettonkin as your seasoned partner, offering specialized expertise and tailor-made solutions to optimize your property investments. Ensure your success in Hanoi's competitive real estate market with Viettonkin.

In the dynamic realm of Vietnamese real estate, the term "condotel" stands out as a compelling fusion of condominium and hotel, offering unique investment opportunities and challenges. This article delves into the intricacies of the condotel market in Vietnam, shedding light on its definition and its profound impact on the country's real estate landscape. Explore the diverse condotel in Vietnam scene as we navigate through key aspects of ownership, revealing insights into property management, and providing a comprehensive step-by-step guide for those interested in venturing into this thriving market.

Understanding the Condotel Market in Vietnam

Overview of Condotels in Vietnam

The term "condotel" refers to a unique hybrid property type combining features of condominiums and hotels, presenting an innovative investment avenue in the Vietnamese real estate sector. Typically, condotels allow individual ownership of units within a larger development managed as a hotel. According to the Vietnam Real Estate Association, the country boasts approximately 239 tourism property projects, encompassing a staggering 114,000 condotels with an estimated value of around 297 trillion VND. These projects are strategically concentrated in areas with robust tourism markets, including Ho Chi Minh, Hanoi, Da Nang cities, and provinces such as Binh Dinh, Khanh Hoa, Binh Thuan, and Ba Ria-Vung Tau.

Benefits and Risks of Condotel Ownership

Investing in a condotel provides distinct advantages, including the potential for consistent rental income, professional property management, and the possibility of property appreciation. The Vietnam Real Estate Association underscores that condotel supply represents a significant 80% of the overall second home supply in key coastal destinations, underscoring their substantial market presence as of 2019. Motivated by the pursuit of quicker returns on investment and a growing confidence in hospitality ventures, developers have propelled the popularity of condotels. While traditionally seen as a "lifestyle product," buyers are increasingly recognizing them as lucrative investment prospects, particularly given the intense competition in this sector. Nevertheless, investors should be mindful of risks such as market fluctuations, varying occupancy rates, and potential shifts in management policies. A thorough understanding of these intricacies is essential for making well-informed investment decisions in the dynamic realm of real estate.

Step-by-Step Guide to Buying a Condotel in Vietnam

Legal Considerations

Investing in a condotel involves navigating specific legal considerations, and recent regulatory developments have brought positive changes to the landscape. The issuance of the government’s Decree 10/2023 marks a significant milestone for the resort real estate market, providing a transparent legal framework for condotels. Under this decree, condotels, officetels, resort villas, and other tourism-related buildings on commercial and service land meeting legal requirements will be granted land-use right certificates. The certificates, valid for 50 years (or up to 70 years for specific projects), bring clarity to ownership and legal status. This crucial step enhances transparency, creating a more secure environment for both developers and buyers. As the market eagerly awaits these certificates, projected to impact approximately 83,000 condotel apartments nationwide, as per data from the Ho Chi Minh City Real Estate Association, it is imperative for potential investors to grasp the evolving legal landscape, seeking counsel from legal professionals well-versed in real estate transactions. Additionally, understanding foreign ownership regulations is critical for prospective buyers, with specific provisions governing leasehold duration, ownership limits, and the acquisition process.

Financial Planning and Investment

Diligent financial planning stands as a fundamental aspect of the condotel acquisition journey. Potential buyers must meticulously evaluate their budget, delving into the array of financing options available for condotel acquisitions. While condotel and second-home products might not promise exceedingly high returns, a thorough financial analysis remains crucial. Anticipated operating yields fluctuate depending on factors such as unit price, size, and prevailing market conditions. Smaller, more budget-friendly units could yield returns of up to 8% of the purchase price, whereas larger, more luxurious units might see yields between 4% and 5%. Operating costs, spanning from 45% to 65% of gross revenues, underscore the need for a comprehensive financial strategy. Seeking guidance from financial consultants and real estate experts offers valuable perspectives, assisting buyers in making well-informed decisions aligned with their financial objectives.

Choosing the Right Condotel

Choosing the appropriate condotel property is a significant decision in the buying process. Buyers need to weigh various factors, such as location, developer reputation, amenities, and the property's potential for appreciation. Conducting due diligence on the developer's track record and the details of the condotel project is essential. Evaluating the property's suitability for investment goals and intended use is important. Real estate agents play a valuable role, providing assistance, insights, and organizing on-site visits to contribute to the decision-making process. Thoughtful consideration of these factors guarantees a successful and rewarding condotel investment experience.

Ensuring Successful Condotel Ownership

Ongoing Property Management

Effective property management is integral to the success of condotel ownership. Owners must recognize the importance of maintaining their property to ensure long-term value and guest satisfaction. Professional property management services play an indispensable role in handling day-to-day operations, maintenance, and guest interactions. By entrusting these responsibilities to experts, condotel owners can focus on the overall success of their investment.

Maximizing Rental Potential

To optimize rental income, condotel owners should employ strategic approaches. This involves implementing effective marketing tactics to attract a steady stream of guests. Pricing strategies tailored to market demand and collaboration with rental management services can significantly enhance rental yields. By adopting a proactive approach, owners can tap into the full income potential of their condotel investments.

Staying Informed on Market Trends

Staying informed on market trends and regulatory changes is key to making informed decisions. Owners need to remain vigilant about shifts in the real estate market, tourism industry, and relevant regulations. This knowledge equips them to proactively adapt their strategies, capitalize on emerging opportunities, and mitigate potential risks. Being well-informed positions condotel owners for sustained success in a dynamic market landscape.

Final Thoughts

In wrapping up our exploration of the condotel landscape, it's clear that this investment avenue is brimming with potential in Vietnam's thriving real estate sector. Highlighting the allure of growth and diverse opportunities, condotels seamlessly blend leisure with financial gains. Looking ahead, recognizing the essential role of professional consulting services becomes crucial. Viettonkin, a standout in Vietnam's real estate, stands ready as your reliable partner, poised to enrich every facet of your condotel investments. From legal considerations to optimizing returns, Viettonkin ensures a comprehensive approach. Uncover the expansive possibilities with Viettonkin, unlocking the full potential of condotel ownership.

In the bustling landscape of Vietnamese real estate, a shop house stands as a distinctive and versatile asset. Defined by its unique combination of commercial and residential spaces, a shop house is a prominent feature in the country's property market. Beyond its structural appeal, owning a shop house in Vietnam comes with a myriad of advantages, ranging from its strategic locations conducive to business visibility to its potential for generating additional income streams. As we delve into the core of shop house ownership, this article will explore its dual-purpose versatility, strategic advantages, and long-term investment potential. Join us in unraveling the effective ways to operate a shop house and navigating the legal complexities of acquiring one in Vietnam.

Advantages of Owning a Shop House in Vietnam

Versatility and Dual Purpose

In the vibrant landscape of Vietnamese real estate, the hallmark feature of a shop house lies in its inherent versatility. This architectural gem seamlessly combines both commercial and residential spaces, providing owners with a dual-purpose asset. The flexibility to conduct business operations on the lower levels while enjoying residential amenities above offers a unique proposition. This adaptability not only caters to entrepreneurial ventures but also opens avenues for creating additional income streams. Whether used for retail, services, or hospitality, the multifaceted nature of a shop house in Vietnam ensures that owners can diversify their revenue streams, contributing to the property's overall economic value.

Strategic Location and Visibility

A key advantage of owning a shop house is the strategic significance of its location. Success in commercial endeavors often hinges on accessibility and visibility, areas where shop houses excel. Situated in high-traffic zones, the location of a shop house becomes a potent factor for business success. The inherent visibility of these structures amplifies brand exposure, providing businesses a competitive advantage. Entrepreneurs looking for a thriving setting for their ventures discover that shop houses offer not just a physical space but also a strategic foothold in prime locations, maximizing their potential in Vietnam's dynamic commercial real estate sector.

Investment Potential

Beyond immediate utility, owning a shop house in Vietnam unfolds as a savvy long-term investment. The country's robust economic growth and increasing urbanization contribute to a rising demand for well-located commercial spaces. As a result, property appreciation becomes a key driver of value for shop house ownership. The investment potential extends beyond immediate returns, with trends indicating sustained growth in demand for these versatile properties. Exploring this facet involves understanding market dynamics, anticipating future trends, and positioning shop houses as valuable assets in an evolving real estate landscape. In essence, investing in a shop house aligns with the trajectory of Vietnam's flourishing real estate market, presenting an opportunity for both stability and growth.

Effective Ways of Running a Shop House in Vietnam

Business Planning and Strategy

Running a successful shop house demands a comprehensive and well-structured business plan. This foundational document outlines operational strategies, financial projections, and marketing approaches tailored to the unique dynamics of shop house operations. An effective plan should encompass a clear understanding of target audiences, pricing models, and competitive positioning. For different commercial real estate types housed within a shop house, such as retail, food services, or offices, the business plan should adapt to specific industry requirements. Maximizing space utilization is a critical aspect, and strategic planning ensures that each square meter contributes to the business's overall functionality and success.

Marketing and Customer Engagement

In Vietnam's competitive business environment, successful shop house owners prioritize effective marketing strategies. Utilizing the physical presence of the shop house is key, employing attractive storefront designs, window displays, and signage to enhance visibility and attract foot traffic. To reach a broader audience, incorporating digital marketing, social media, and online platforms is essential. Transforming the shop house into a hub for community engagement through events and collaborations fosters customer loyalty. Creating a welcoming atmosphere contributes to a positive brand image, enhancing the overall success of the shop house.

Legal and Regulatory Compliance

For shop house owners in Vietnam, understanding and navigating the legal landscape are fundamental. Awareness of legal considerations for shop house ownership is critical for compliance and smooth operations. This includes understanding zoning regulations, building codes, and obtaining the necessary permits for different business activities. Managing the property requires compliance with local laws, understanding tenancy regulations, and ensuring the safety and accessibility of the shop house. Proactive attention to legal compliance not only mitigates risks but also establishes a foundation for sustainable business operations within Vietnam's regulatory framework.

Legal Regulations on Shop House Ownership in Vietnam

Investing in a shop house in Vietnam requires a comprehensive understanding of the legal framework associated with property ownership. Here's a breakdown of crucial aspects to consider:

The process of purchasing a shop house in Vietnam involves several key steps. Initially, prospective buyers need to identify suitable properties, conduct due diligence, and negotiate terms with the seller. Engaging a qualified real estate agent or legal professional is advisable at this stage to streamline the process and ensure a smooth transaction. Once an agreement is reached, the buyer and seller sign a purchase agreement, and the buyer typically pays a deposit to secure the property.

Understanding the regulatory landscape is essential for navigating real estate transactions successfully. Vietnamese law outlines specific regulations and documentation requirements for property transactions. These may include proof of ownership, land use rights certificates, and any relevant permits. Adhering to these regulations ensures the legality and legitimacy of the property transaction.

Navigating legal complexities in commercial property for sale demands a careful examination of zoning laws and land use restrictions. Zoning regulations dictate the types of businesses allowed in specific areas, ensuring compliance with these regulations is vital for avoiding legal complications. Additionally, obtaining the necessary permits and licenses for commercial activities within the shop house is important. This includes approvals from local authorities, fire safety certifications, and adherence to environmental standards.

While shophouses in Vietnam are a distinctive blend of commercial and residential space, the legal aspects of transferring or buying and reselling a shophouse are akin to any other property type, such as flats or houses. Moreover, it's important to be aware of Vietnam's specific house ownership rights for foreigners, as legal regulations in this regard are subject to unique considerations and restrictions.

In summary, a successful venture into shop house ownership in Vietnam necessitates a thorough understanding of the legal intricacies involved in property transactions. Engaging professional guidance, staying informed about regulations, and ensuring compliance with legal requirements are key to a secure and successful investment.

Final Thoughts

In summary, acquiring a shop house in Vietnam unveils a distinctive array of benefits, encompassing adaptability, prime locations, and lucrative investment prospects. Grasping effective methods to manage a shop house and navigating legal frameworks is essential for prosperity. Recognizing the value of shop house ownership in Vietnam's dynamic real estate sector, underscores the importance of professional assistance. For tailored solutions and smooth transactions, place your trust in Viettonkin - a premier consulting ally with unparalleled proficiency in real estate in Vietnam. Explore your shop house potential with Viettonkin, initiating a journey into thriving real estate ventures.

In the thriving world of real estate development in Vietnam, real estate developers play a pivotal role in shaping the landscape. These visionary professionals, often referred to as land developers or estate developers, are the architects of modern cities, crafting everything from commercial skyscrapers to residential communities. Their influence extends beyond construction; they are the driving force behind the growth of the country's urban areas, catering to the needs of housing investors, businesses, and residents. This article explores the key traits that set successful real estate developers apart in Vietnam's competitive market, whether they specialize in commercial property development, office buildings, or residential land.

Vision and Strategy

In the dynamic world of real estate development in Vietnam, having a well-defined vision and strategy is the cornerstone of success. Real estate developers who thrive in this competitive landscape are those who not only possess a clear vision but also meticulously craft strategies that align with market demand and trends. 

Clear Vision and Strategic Alignment

One of the defining traits of prosperous real estate developers is their ability to envision the future. They understand the evolving needs of the market and envision projects that cater to those requirements. For instance, in the context of Vietnam's fast-growing economy, developers have recognized the demand for modern, mixed-use developments that combine residential, commercial, and recreational spaces. Visionaries like Vingroup have excelled by creating integrated communities like Vinhomes Ocean Park, Vinhomes Smart City, Vinhomes Central Park, aligning their projects with the changing lifestyle preferences of residents.

Market Demand and Trend Analysis

Successful developers don't operate in isolation; they are market-savvy professionals who keenly analyze current trends and anticipate future shifts. In Vietnam, this means understanding the rising demand for eco-friendly and sustainable developments. Sun Group, for instance, has gained recognition for its sustainable tourism and real estate projects, such as Sun World Fansipan Legend, which align with the growing global trend towards responsible and green living.

Long-Term Planning and Adaptability

In the realm of real estate development, a focus on the long term is essential. Thriving developers in Vietnam carefully plan and strategize for the years ahead. Their vision extends beyond immediate projects to consider how their developments will evolve over time. Furthermore, they possess the adaptability to pivot when necessary, responding to changing market dynamics. An exemplary case is CapitaLand, which, with its focus on quality and sustainable urbanization, has continually adapted its strategy to remain at the forefront of Vietnam's real estate market.

Local Expertise and Relationships

To thrive in the competitive realm of Vietnamese real estate development, local expertise and relationships are paramount. Successful developers recognize that a deep understanding of local markets and regulations is not just beneficial but crucial to success. Additionally, they understand the immense value in building strong relationships with local authorities, partners, and communities.

Navigating Complex Local Markets and Regulations

Vietnam's real estate market is intricate, with nuances that require intricate knowledge. Developers who excel in this market possess an in-depth understanding of local regulations, permitting processes, and land-use rights. They navigate these complexities with finesse, ensuring their projects remain compliant and avoid legal pitfalls. For instance, the Phu My Hung Development Corporation is celebrated for its profound understanding of Vietnamese regulations, which has enabled it to create successful urban developments in Ho Chi Minh City.

Building Strategic Relationships

In Vietnam, relationships matter immensely. Successful developers prioritize building strong connections with local authorities, fostering goodwill, and ensuring the smooth progression of their projects. They also establish partnerships with local businesses and investors, leveraging their resources and expertise. An exemplary case is Vingroup, which has strategically partnered with leading global brands to enhance the quality and appeal of its developments.

Leveraging Local Knowledge and Networks

In a country where local nuances matter, successful developers rely on their local knowledge and networks to identify opportunities and mitigate risks. They understand the importance of cultural sensitivity, which allows them to connect with communities and gain their support. Sun Group, renowned for its tourism and real estate developments, has excelled in leveraging its deep local knowledge and relationships to create projects that resonate with both locals and tourists.

Quality and Innovation

In Vietnam's dynamic real estate sector, quality and innovation are not just buzzwords but essential pillars that set apart successful developers. These developers understand the significance of delivering top-notch construction and innovative design to meet the evolving demands of the market.

Quality Construction and Innovative Design

Successful real estate developers in Vietnam understand that quality construction and innovative design are non-negotiable. They prioritize the use of top-notch materials and the employment of skilled professionals to ensure that their projects stand the test of time. Whether it's luxurious condominiums or commercial office spaces, quality is the hallmark. A striking example is the Keppel Land's Empire City project in Ho Chi Minh City, renowned for its state-of-the-art design and construction quality.

Sustainability and Eco-Friendly Practices

Sustainability is a growing concern in Vietnam, and leading developers embrace eco-friendly practices. They integrate energy-efficient technologies, use eco-conscious materials, and design projects that reduce environmental impact. Developers like CapitaLand are pioneering the way with eco-friendly developments like Vista Verde, which boasts green spaces and sustainable features that benefit both residents and the environment.

Technology and Innovation

In today's digital age, technology plays a pivotal role in real estate development. Successful developers leverage innovative technologies for efficient project management, smart building systems, and enhanced customer experiences. Construction enterprises such as Hoa Binh have adopted Building Information Modeling (BIM) for precise planning and execution. They exemplify this by incorporating advanced home automation systems into their residential projects, providing residents with a modern and convenient lifestyle.

Final Thoughts

In the highly competitive realm of Vietnam's real estate market, being a successful real estate developer transcends the mere construction of properties. It hinges on visionary strategies, an in-depth understanding of local dynamics, strong relationships with local authorities and partners, a commitment to top-notch quality, and a penchant for innovation. These traits and strategies are what set apart real estate developers who truly thrive.

As you navigate the dynamic landscape of Vietnam's real estate sector, it's essential to remember that challenges are part of the journey. Regulations, market fluctuations, and evolving demands may pose hurdles, but with the right attributes and insights, you can transform these into opportunities. Viettonkin, your trusted partner, is here to provide invaluable support, leveraging our expertise to guide your success in the vibrant world of Vietnamese real estate.Don't embark on your real estate journey alone. Partner with Viettonkin to harness our knowledge, experience, and extensive networks. Whether you're a housing investor, office building developer, residential land developer, or retail property developer, our services are tailored to your needs. Connect with us today to explore how we can shape your real estate endeavors into triumphs.

In an ever-evolving global real estate landscape, foreign investors are increasingly drawn to Vietnam as an alluring destination for property acquisitions. By providing up-to-date statistics, comprehensive analysis, and meticulous step-by-step instructions, this guide aims to arm foreign investors with the insights required to make well-informed decisions in Vietnam's burgeoning real estate market.

Why should investors buy a property in Vietnam?

Principal among the reasons to consider investing in property in Vietnam is the relative affordability of real estate compared to other nations within the region and worldwide. According to Vietnam Credit, the average price per square meter of apartments in Hanoi and Ho Chi Minh City – Vietnam's largest urban centers – was approximately $1,800 in 2023. This figure notably trails that of Bangkok ($2,600), Kuala Lumpur ($3,400), Singapore ($14,000), and Hong Kong ($28,000). Moreover, projections indicate that property prices in Vietnam are poised to grow by 6-8% annually over the next five years, promising a favorable return on investment for interested parties.

Furthermore, Vietnam presents a plethora of property types catering to various needs and preferences. Whether seeking residential properties for living or leasing, commercial spaces for business endeavors, or resort properties for investment or leisure, Vietnam has a selection to satisfy every investor. Among the most sought-after property types are below:

House ownership rights of foreigners in Vietnam

According to Article 7 of the 2014 Law on Housing in Vietnam, entities eligible for the ownership of Vietnam properties include: 

• Vietnamese organizations, households, or individuals;
• Overseas Vietnamese individuals;
• Foreign organizations and individuals as regulated by the regulations.

In detail, Article 159, Clause 1 of the Law on Housing stipulates specific conditions whereby foreign organizations and individuals are provided the right to acquire property in Vietnam. Several qualifying scenarios include:

• Foreign entities investing in project-based housing construction within Vietnam, as outlined in the Law on Housing, the Law on Real Estate Business, and corresponding regulations.
• Foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign-invested funds, and branches of foreign banks operating in Vietnam, provided they are registered to operate in the country.
• Foreign individuals holding authorization to enter Vietnam, lacking diplomatic immunity and privileges as prescribed by law.

It can be seen that foreigners are not allowed to have their name on Certificate of land use rights, ownership of houses and other land-attached assets for foreigners. However, foreigners are allowed to have the name on the Certificate of land use rights, ownership of houses and other land-attached assets belonging to apartments and separate houses in housing construction for investment projects.

How to buy a property in Vietnam?

While the property acquisition process in Vietnam hinges on factors such as property type, acquisition method, and buyer nationality, common steps persist across scenarios: 

• Step 1: Identifying a suitable property.

Foreign investors typically select apartments within commercial housing projects. Opting for reputable projects and investors mitigates risks, with a crucial review of eligibility for foreign sale per Vietnamese law. You can look for a property in Vietnam in top 3 trusted website below:

1. https://batdongsan.com.vn/
2. https://homedy.com/
3. https://dothi.net/

• Step 2: Executing a house sales and purchase contract.

Upon selecting an appropriate apartment, investors can formalize their intent by entering a deposit contract, the value contingent on mutual agreement or project-specific terms. This deposit influences house valuation, contract timing, and pertinent conditions. Subsequent steps include formalizing the house purchase contract with the project's investor, outlining the respective parties' rights and obligations.

• Step 3: Obtaining a Certificate of land use rights, ownership of houses and other land-attached assets

After Post-property receipt and tax obligation fulfillment, foreign investors will meet the conditions to be granted a Certificate as prescribed and proceed with procedures of obtaining Certificate of land use rights, ownership of houses and other land-attached assets, potentially facilitated by the project investor.

What needs to be mindful of when buying a property in Vietnam?

While acquiring property in Vietnam holds appeal, various legal parameters must be observed, in alignment with Decree 99/2015/ND-CP:Foreign organizations and individuals face legal restrictions on owning a property in Vietnam (Article 76 of Decree 99/2015/ND-CP). To be more specific, 

• Foreign investors can own no more than 30% of apartments within a building and no more than 30% of the total number of apartments of all these apartment buildings
• They can own no more than 250 individual houses within a project whose quantity of detached houses is equivalent to 2,500 houses. 
• In case the quantity of detached houses of a project is fewer than 2,500, foreign entities may own up to 10% of the houses of such a project. 
• If there are two or more projects where the total quantity of detached houses does not exceed 2,500 houses, foreign entities may own up to 10% of the houses of each project.

Foreign ownership extends to a maximum of 50 years.

• Property ownership is subject to specific conditions when acquiring from housing project investors, foreign entities/individuals who own property, or when inheriting or receiving properties from Vietnamese individuals, households, or organizations. This effectively means that direct purchases from Vietnamese owners are not allowed.
• Property acquisition is prohibited within areas designated for national defense and security.

To receive the Certificate of land use rights, ownership of houses and other land-attached assets, foreign investors must fulfill tax obligations and pay relevant fees, which include:

No	Fee/Tax	Rate
1	Registration fee	0.5% x property transfer price
2	Fee for notarizing the contract	To be determined based on the property transfer price
3	Fees for appraisal of dossiers	Based on the size of the land plot, the complexity of each type of application, the purpose of land use and the specific conditions of the locality.
4	Fees for issuing for appraisal of dossiers for issuance of Certificate of land use rights, ownership of houses and other land-attached assets land use rights	Based on specific local conditions and local socio-economic development policies

Final thoughts

Purchasing property in Vietnam represents a strategic and potentially lucrative choice, contingent upon adherence to the steps and insights outlined in this guide. Should questions, concerns, or further assistance arise, Viettonkin Consulting stands ready to help. As a premier consultancy firm in Vietnam, we provide a comprehensive array of services, including market research, business registration, legal support, tax advisory, accounting, auditing, and more. Our seasoned experts possess extensive expertise in Vietnam's real estate sector, poised to assist in property selection, purchase, and post-acquisition optimization. We are dedicated to delivering bespoke, high-quality solutions to our clients' unique requirements. 

Contact us now for more information!

The year 2023 holds great promise for Vietnam's real estate market, with expectations of a robust recovery. This resurgence can be attributed to several crucial factors, including the nation's unwavering political stability, a thriving economy, bolstered by supportive policies, and the untapped potential of the Vietnamese market amidst a backdrop of economic uncertainty. In this article, we will delve into the five pivotal trends that are reshaping Vietnam's real estate landscape in 2023 and beyond.

Highlight of Vietnam’s real estate market in H1 2023

According to Dr. Can Van Luc, an economist and member of the National Monetary and Financial Policy Advisory Council, the real estate market of Vietnam has encountered numerous challenges since the beginning of 2023. These difficulties arise from key legal principles and funding sources, as well as the burdensome effects of high inflation and interest rates. However, a glimmer of hope emerges on the horizon as the market has experienced a significant recovery since April 2023.

During the seminar "Overview of the real estate market in Q1 2023 and the development of the real estate market in Q2 of 2023," Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), shared an optimistic outlook that the domestic real estate market will experience positive changes thanks to the implementation of new government policies.

Starting from March 2023, the Government has made four critical decisions that bear immense importance for the market. One such decision is Decree 08, issued on March 5, which allows real estate businesses to issue and mature corporate bonds. This decree serves as a legal foundation for businesses to negotiate with bondholders regarding debt deferment, asset sales at discounted prices, and even asset exchanges for bonds. Since the issuance of Decree 08, the real estate market has witnessed an influx of newly issued bonds amounting to VND 24 trillion, with a significant portion of these funds flowing into the market.

Another pivotal resolution is Resolution 33, issued on March 11, 2023, which addresses various challenges faced by the real estate market and promotes its safe, healthy, and sustainable development. Mr. Luc commended this resolution as remarkably comprehensive, as it tackles obstacles in three crucial areas: legal bottlenecks and loopholes, capital sources, and social housing.

Additionally, Project 338, initiated on April 3, 2023, aims to invest in and construct at least one million social housing apartments by 2030. This project provides a solid legal framework for businesses and localities involved in the development of social housing.

Moreover, Decree No. 10, issued on April 3, 2023, offers guidance on the Land Law and supplements regulations pertaining to the granting of ownership rights for resort real estate.

These recent government policies demonstrate a concerted effort to address the challenges faced by the real estate market. By providing legal clarity, facilitating capital flow, and focusing on social housing development, they lay the groundwork for a more stable and prosperous future. As we move forward, it is expected that the real estate market will regain its momentum and pave the way for sustained growth and positive transformations in the coming months and years.

5 emerging trends in Vietnam’s real estate industry in 2023

The Surge of Social Housing

The residential real estate sector is poised for a remarkable recovery in 2023, primarily due to the persistent demand for affordable housing. Over the past period, the need for affordable housing has consistently remained high. Recent initiatives undertaken by both the government and businesses, such as the "Investing in building at least one million social housing apartments for low-income people and industrial park workers in the period of 2021 - 2030" project, have set the stage for the segment's resurgence in 2023 and the following years.

The projected surge in the supply of social housing holds the key to addressing the housing requirements of the majority of low-income individuals residing in urban areas and those employed in industrial parks. This development signals a positive shift in market supply, effectively targeting the appropriate audience with genuine housing needs. The addition of millions of social housing units will contribute to resolving the prevailing issue within the housing market, which is an excess of properties in the upper segment and a shortage in the lower segment.

The Rise of Green Real Estate

According to Mr. Nguyen Van Dinh, Chairman of the Real Estate Brokers Association, in the wake of the Covid-19 pandemic, the demand for this green real estate is poised to skyrocket, as individuals yearn for the security of a safe living environment. Consequently, a multitude of customers and investors are turning their attention toward green real estate projects in 2023 and beyond.

At COP26, Vietnam made a resolute commitment to become a net-zero country in terms of emissions by 2050. In line with this ambitious goal, numerous policies have been enacted to review and adjust relevant strategies, master plans, and development blueprints. Simultaneously, these initiatives aim to foster investor interest in Vietnam's thriving green real estate industry.

However, a recent report from the Ministry of Construction, presented during the Vietnam Green Building Week 2022, paints a sobering picture of the current state of green building development. The report reveals that the country currently boasts only over 233 green building projects, covering a total area of approximately 6 million square meters. This figure pales in comparison to the vast number of projects constructed and brought into operation over the past decade. Therefore, in order to achieve the established goals and keep pace with the global trend towards green and sustainable living, Vietnam continues to anticipate that the green real estate industry will remain an investment hotspot not only in 2023 but also in the years that follow.

The Digital Transformation of Real Estate

The global upheaval caused by the Covid-19 pandemic has acted as a powerful catalyst for digital transformation across various industries. As per the Property Insight Program, Vietnam's Proptech market has the potential to attract approximately $500 million in investment capital. With legal hurdles gradually being dismantled and capital flows becoming more favorable, 2023 is poised to be the year of significant development for the Proptech market.

The removal of legal obstacles and the improved accessibility of capital have laid a solid foundation for the rapid growth of the Proptech market in Vietnam. As investors recognize the immense potential of Proptech in streamlining real estate transactions and enhancing customer experiences, significant investment inflows are expected to pour into the sector.

The Evolution of House Rental 

In the period from 2021 to the present, the real estate market has witnessed a substantial surge in selling prices, with average price levels soaring by 30-40%. Surprisingly, this upward trajectory has not been mirrored in the rental market, which has struggled to keep pace. As the price levels reach new highs, the buying and selling market experiences a slowdown, prompting investors to redirect their attention to the rental segment.

Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the South region, foresees that the investment flow in 2023 will gravitate towards properties that can be leveraged for rentals, such as apartments, townhouses, and factories. This real estate category offers convenient access to loans and is considered a safe haven within an imbalanced market landscape.

Market realities validate this shift in focus, with a sustained high level of interest in rental properties since the end of 2022. Data from Batdongsan.com.vn reveals that nationwide demand for real estate rentals in the first month of 2023 experienced a staggering 101% increase compared to the same period in 2022.

Several factors contribute to this surge in rental demand. Many customers find themselves financially unable to purchase homes, prompting them to opt for rental accommodations. Additionally, certain groups engage in renting and subsequently subleasing to cater to the growing domestic tourism sector. Moreover, some organizations, having adopted remote work arrangements in 2022, are now returning to the rental market in 2023 to secure smaller premises, typically ranging from 50-70 square meters, within city centers for work purposes. Furthermore, the trend of urbanization is on the rise, with an increasing number of individuals migrating toward urban centers. This phenomenon fuels the demand for apartments and motels, making the rental market a more vibrant and dynamic sector.

Investors switching to construction contractors

In the intricate value chain of the real estate, construction, and building materials industry, businesses often progress from material producers to sub-contractors, general contractors, and ultimately project owners through various stages of growth.

However, faced with financial constraints and increasing competition, a notable shift is occurring as an increasing number of real estate companies venture into providing construction services as contractors instead of undertaking projects from scratch.

This trend has gained significant traction in several countries worldwide, most notably in China. Experts within the industry also suggest that a similar trend may emerge in Vietnam.

This shift towards becoming construction contractors offers real estate companies greater flexibility and agility in adapting to market dynamics. They can capitalize on their industry knowledge and networks to secure construction contracts, forging mutually beneficial partnerships with project owners while optimizing their own operational efficiency.

Final Thoughts

Given the challenges ahead, the Vietnamese real estate industry is anticipated to experience a positive recovery toward the end of 2023. By investing in Vietnam's real estate market, investors can contribute to the country's sustainable development goals, capitalize on the benefits of technological advancements, tap into the rental market's profitability, and participate in the industry's shifting dynamics. Whether it's investing in green projects, leveraging digital tools, exploring rental opportunities, or partnering with real estate companies as construction contractors, there are numerous avenues for investors to explore and thrive in Vietnam's real estate landscape.

To seize these compelling opportunities, investors can utilize Viettonkin's consulting service as a trusted partner in navigating Vietnam's real estate market. At Viettonkin, we offer tailored and comprehensive legal and business consulting services specifically designed for investors interested in the Vietnamese real estate market. Our team of experts is well-versed in the intricacies of Vietnam’s real estate landscape, providing strategic advice and practical solutions to help you navigate the complexities of the industry, ensure regulatory compliance, and maximize your investment potential.

By leveraging Viettonkin’s expertise and comprehensive support, investors can confidently invest in Vietnam's real estate industry and reap the rewards of this dynamic and thriving market.

Contact us today to unlock the full potential of your investments in Vietnam's real estate market.