Acquiring land use rights in Vietnam can feel daunting—but it’s entirely doable with the right legal roadmap. With twenty years advising FDI projects in Vietnam, China, and Malaysia, I’ve witnessed investors stumble by equating Western freehold ownership with Vietnam’s Land Use Rights (LUR) regime.

You must master the costs, regulations, and procedures for securing Land Use Rights—distinct for Vietnamese entities, Overseas Vietnamese, and foreign investors. Grasping this distinction under the 2024 Land Law (effective Jan 1, 2025) is essential to mitigate compliance risks and lay the groundwork for sustainable growth.

Key Takeaways:

• No Freehold—Only LURs: Per Article 53, 2024 Land Law, all land belongs to “the people” and is managed by the state. Foreigners and FIEs may obtain Land Use Rights certificates (red books), not freehold titles.
• Choose the Right Vehicle: Set up a Foreign‑Invested Enterprise under Law on Investment 2020 (amended 2025) to lease land directly from the state or sublease within an Industrial Park—aligning structure with your project scope and duration.
• Time‑Limited Rights: LURs run up to 50 years for foreign investors (extendable once), per Clause 3, Article 188, 2024 Land Law—plan your exit or extension early to avoid lapses.
• Viet Kiều Privileges: Under Article 20, 2024 Land Law, Overseas Vietnamese receive near‑equal LUR terms (50‑year renewable tenure) as citizens—no foreign‑ownership caps in most residential and commercial categories.
• Rigorous Due Diligence: Engage a Vietnamese‑licensed lawyer to verify the “Red Book” LUR certificate, confirm land‑use classification and master‑plan zoning, and uncover any encumbrances via the provincial Land Registry.

Vietnam Property Market

Vietnam’s real estate sector is now a top ASEAN investment hotspot—FDI into residential and commercial projects topped $12 billion in 2024 under the Law on Investment 2020 (amended 2025). Its strategic geography, 6.8% GDP growth (Q2 2025), and median age of 32 underpin surging demand across asset classes.

To attract FDI, authorities streamlined procedures under Decree 31/2023/NĐ‑CP, cutting IRC and ERC issuance to 10 working days. Foreigners may acquire apartments and villas per Housing Law 2014 (amended 2025)—subject to a 30% building quota and 50‑year leasehold—ensuring clarity and security.

With regular updates—e.g., Circular 111/2024/TT‑BTC on fees and Decision 145/QĐ‑TTg (2025) on foreign quotas—foreign investors must monitor GDT and MPI announcements to remain compliant and seize new opportunities.

Foreign Land Use in Vietnam

Can Foreigners Own Foreign Land in Vietnam?

No—per Article 53 of the 2013 Constitution (amended 2024), land is “the people’s” and state‑managed. Instead, as the Embassy of Vietnam in the USA states, investors obtain Land Use Rights (LUR) certificates (“Red Book”) under 2024 Land Law, granting leaseholds up to 50 years (extendable once).

Foreign investors secure land via leaseholds—either direct state leases or subleases in Industrial Parks—formalized by a LUR Certificate under Decree 43/2014/NĐ‑CP. Residential investors use the Housing Law pathway for condos and villas, capped at 30% foreign occupancy per building.

Key Laws for Land Acquisition

 Principal Legislations:

• 2024 Land Law (effective Jan 1, 2025) sets LUR terms and tenure.
• Law on Investment 2020 (amended 2025) requires an IRC for project‑level LURs.
• Decree 43/2014/NĐ‑CP details state land leases to FIEs.
• Decree 148/2024/NĐ‑CP governs LUR certificate issuance and transfers.

Land Use Classifications That Apply

Not all land is equal. LURs are classified based on their use—agricultural, residential or commercial/industrial. Foreign investors are mainly interested in commercial and industrial land which is the legal basis for building factories, offices and other business facilities. Converting land from one category to another is a highly regulated process. Foreign investors interested in residential projects should verify the legal status and eligibility of the land through the land registry to ensure compliance with ownership and use restrictions.

Types of Properties

Foreign buyers in Vietnam have access to a wide range of properties, each suited to different investment goals and lifestyles. In major cities like Ho Chi Minh City and Hanoi, residential properties such as apartments, condominiums and houses within designated commercial housing projects are popular choices. These projects often feature modern amenities and are subject to regulations that allow foreign ownership under a leasehold structure, typically up to 50 years with possibility of extension.

The lease agreement is a crucial document, outlining the payment schedule, maintenance costs and other terms that govern the use of the property. For those interested in industrial real estate, Vietnam offers opportunities to lease land for factories, warehouses and logistics centers, especially in rapidly developing industrial zones. While foreign buyers can’t own land outright, the ability to lease land and invest in residential or industrial property provides a flexible way to participate in Vietnam’s property market.

Step-by-Step Guide to Buying Land as a Foreigner

A disciplined process is the only way to get land rights. When you buy property in Vietnam, understanding the process is key as buying real estate involves several legal and procedural steps to ensure compliance and a successful transaction.

Structuring the Acquisition

Your first strategic decision is to choose the right structure. For businesses, the most common and secure way is to set up a foreign-invested enterprise (FIE) in Vietnam. Foreign companies must show sufficient financial capability to qualify for land leases and investment projects. This FIE can then directly lease land from the state or sublease land within a designated Industrial Park (IP) or Economic Zone (EZ) to develop its project.

Due Diligence and Red Flag Checks

This is where you go big or go home on your research. A thorough due diligence process is essential.

• Verify the LUR Certificate: Check the current holder of the LUR has a clean title (the “red book”) and verify the legal status of the property through the land registry and title deeds.
• Check Zoning & Master Plan: Ensure the land is zoned for your intended use according to the provincial master plan.
• Investigate History: Check for any existing liens, disputes or environmental liabilities associated with the land.
• Confirm Approvals: Ensure the project has received the necessary approvals from the Provincial People’s Committee.

Signing the Contract and Finalizing the Deal

Before signing the formal land lease agreement, buyers may first enter into a reservation agreement which involves paying a deposit to temporarily secure the property while final sale terms are negotiated.

Once due diligence is complete, you will sign a formal land lease agreement. Long term lease agreements, often spanning several decades, are the norm for foreign investors and lease extensions may be available upon expiration to maintain property rights. This contract must be notarized to be legally valid. After signing, you will pay the land use fees and taxes and register the lease with the local land registration office to have your company officially recorded as the holder of the Land Use Rights.

1. Define your project and land requirements.
2. Choose the right legal structure (e.g., set up an FIE).
3. Identify potential sites (e.g., in an Industrial Park).
4. Engage a reputable law firm and real estate advisor.
5. Conduct comprehensive legal and technical due diligence on the land.
6. Agree on the lease terms.
7. Sign the notarized lease.
8. Pay all fees and taxes.
9. Register the lease with the local authorities.
10. Get your own LUR for the project.

Industrial and Commercial Land: Special Cases and Investor Strategy

Leasing Land in Industrial Parks

For most foreign manufacturers, leasing land in an Industrial Park is the most efficient and secure way. Popular industrial provinces like Bac Ninh, Binh Duong and Long An have world-class IPs with ready-built infrastructure, power, water and waste treatment. The IP management board acts as a one-stop shop to secure permits and licenses. Getting a LUR certificate is a crucial step to formalize land tenure in industrial parks as it’s the official document confirming property rights after the transaction is completed.

Real Estate Development and Built-Transfer (BT) Models

For large scale real estate developers, Vietnam offers Build-Operate-Transfer (BOT) and Build-Transfer (BT) models, typically for major infrastructure or urban development projects. These are complex projects that require significant capital and deep experience in public-private partnership frameworks. These models are shaping the real estate landscape in Vietnam and driving the growth of the Vietnamese property market by enabling large scale investments and development opportunities.

Land Access for Expats and Non-Corporate Buyers

Buying Apartments and Condos as a Foreigner

The Vietnam Housing Law provides a clear path for foreign individuals to buy residential properties. As the Global Referral Group explains in their guide, foreigners can buy apartments and condos within commercial projects, subject to a 50-year leasehold term and 30% cap on foreign ownership within any single building.

The purchase of apartments is governed by a leasehold agreement which outlines the legal framework for foreign ownership, including lease duration and renewal options. Property cost can vary greatly depending on location and type of residential project, and factors such as property type and associated fees. This is the most direct way for an expat to secure a personal residence.

Residential Property via Vietnamese Spouse or Partner

A foreigner married to a Vietnamese citizen can have co-ownership of residential property. In some cases, foreigners married to Vietnamese citizens can own property outright provided certain legal conditions are met. While this gives access to land with terms similar to local citizens, it requires careful legal structuring such as prenuptial agreements to manage risks related to asset protection and divorce.

Common Mistakes and How to Avoid Legal Disputes

Top Mistakes Foreign Buyers Make

I’ve seen investors make costly errors by moving too fast or without expert guidance which can seriously undermine your property investment goals.

• Misreading the LUR Certificate: Not noticing if the land is for agriculture when you need it for industry.
• Using Unregistered Agents: Working with informal “brokers” who don’t have the legal authority to represent sellers.
• Underestimating Clearance: Not accounting for the time and cost to clear existing structures or compensate previous users.

Dispute Resolution and Risk Management

The best way to manage risk is with a well-drafted contract that outlines clear terms and a dispute resolution process. While Vietnam’s court system can enforce contracts, local arbitration is often faster and more efficient for commercial disputes. Having a strong legal partner from the beginning is your best insurance policy. Notably, as reported by Vietnam Law Magazine, the new 2024 Land Law gives more rights to overseas Vietnamese which will reduce disputes for this specific group as their legal status becomes clearer.

Buying Property in Vietnam

Buying property in Vietnam requires careful planning and attention to detail especially for foreign buyers who are not familiar with local regulations. Start by engaging a reputable real estate agent who knows the local market and can guide you through each step of the buying process. Conduct thorough due diligence on the property including verifying its ownership history, checking the validity of land use rights and ensuring there are no outstanding debts or legal issues.

The sales and purchase agreement is a legally binding contract that should clearly outline the purchase price, payment schedule and any warranties or guarantees provided by the seller. Review all terms carefully and seek legal advice if needed. Also factor in property taxes and fees such as property transfer tax and registration costs which will impact your overall investment. By following these steps and staying informed about local regulations, foreign buyers can minimize risks and make confident decisions when buying property in Vietnam.

Conclusion: From Red Tape to Red Book—Land Ownership Secured

Securing land in Vietnam is a strategic move that requires a shift in mindset from “ownership” to “long-term rights”. The legal framework is well defined and becoming more transparent especially for investors operating through a registered Vietnamese company or leasing within an industrial park. With a clear strategy, thorough due diligence and expert legal guidance you can turn the challenge of land acquisition into a foundation for your business.

Ready to unlock unprecedented growth? Viettonkin empowers businesses to lease, build or acquire land use rights with legal clarity and strategic confidence. Start your project with a team that has the on-the-ground expertise to get it done right.

Resources for Foreign Buyers

Foreign buyers purchasing property in Vietnam have access to a wealth of resources to support their investment journey. The Vietnamese government provides official websites with up-to-date information on property prices, market trends and investment opportunities so buyers can make informed decisions.

Real estate agents, lawyers and other local experts can offer valuable insights into the local market and guide you through the buying process from property selection to finalizing the transaction. There are also many property websites featuring listings for apartments, houses and industrial properties across Vietnam’s major cities and regions.

For more information foreign buyers can reach out to the Vietnamese embassy or consulate in their home country for guidance on regulations and procedures for buying property in Vietnam. By using these resources and seeking professional advice foreign buyers can navigate the complexities of the Vietnamese real estate market and secure successful investments.

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