Understanding Vietnam’s Property Laws for Foreign Investors

Vietnam’s real estate market has become increasingly attractive to foreign investors, but navigating the legal framework requires careful understanding of local regulations. This guide outlines the key legal aspects that foreign investors should consider when purchasing property in Vietnam.

Ownership Rights for Foreigners

The 2015 Housing Law and its subsequent amendments have significantly expanded foreign ownership rights in Vietnam, but important restrictions remain:

What Foreigners Can Own

• Apartments: Foreign individuals and entities can purchase apartments in commercial residential projects
• Houses: Foreigners can own houses within commercial housing projects, but not in areas designated as national security zones
• Duration: Ownership certificates are issued for a 50-year term, with possible extension

Ownership Limitations

• Foreign ownership in any single apartment building is capped at 30% of units
• Foreign ownership in landed property projects is limited to 10% of the total number of houses
• Restrictions apply to properties in areas designated for national defense and security

For more detailed information on foreign investment opportunities, see our comprehensive Foreign Ownership Guide.

Investment Structures

Foreign investors typically use one of these structures to invest in Vietnamese real estate:

Direct Purchase

The simplest approach for apartment units, requiring only a valid passport, visa, and proof that you’re not eligible for diplomatic immunity.

Local Company Establishment

Forming a Vietnamese company allows for greater flexibility in property acquisition but involves more complex compliance requirements.

Joint Venture

Partnering with a Vietnamese entity can provide access to land use rights that might otherwise be restricted to foreigners.