Can Foreigners Do Real Estate Business in Vietnam?

Vietnamese law allows foreigners to invest in real estate, but they must comply with the conditions stipulated in Article 10 of the 2014 Law on Real Estate Business, Article 4 of Decree No. 02/2022/ND-CP, and other relevant regulations.

Benefits of Investing in Real Estate in Vietnam

• Profit Opportunities: Vietnam’s real estate market is thriving, offering numerous profit-making opportunities for investors.
• Diverse Products: Investors can choose from a variety of real estate types, including apartments, townhouses, and villas.
• Strategic Location: Vietnam’s favorable geographical location makes it an attractive destination for many foreign investors.

Limitations for Foreigners Investing in Real Estate in Vietnam

Although Vietnam has opened its real estate market to foreign investors, certain limitations remain. Key points to note include:

1. No Ownership of Land

• Principle: According to Vietnamese law, only Vietnamese citizens can own land.
• Ownership Form: Foreigners can only own properties that are attached to land, meaning they can buy apartments in condominium projects or individual houses within approved urban areas.

2. Ownership Limitations

• Apartments: Foreigners can own up to 30% of the total number of apartments in a condominium building.
• Individual Houses: In a population area equivalent to a ward, foreigners can own a maximum of 250 individual houses.

3. Regional Restrictions

• Prohibited Areas: Foreigners are not allowed to buy houses in special areas such as defense or security zones.
• Restricted Areas: Some other areas may have specific regulations that limit foreign ownership.

4. Ownership Duration

• Maximum 50 Years: According to the regulations, foreigners can own property for a maximum of 50 years from the date of receiving the certificate of ownership.
• Extension: After the expiration period, foreigners may be eligible for an extension if needed.

5. Legal Procedures

• Complexity: The process of buying and transferring real estate to foreigners is usually more complicated compared to Vietnamese citizens.
• Time: This process also takes more time.

6. Legal Risks

• Policy Changes: Real estate policies may change, affecting the rights of investors.
• Disputes: Disputes may arise regarding ownership rights, contracts, or other legal issues.

7. Language and Cultural Barriers

• Information: Finding information, understanding the market, and legal regulations can be challenging due to language barriers.
• Transactions: The transaction process can also encounter obstacles due to cultural differences.

To overcome these limitations, foreign investors often choose to invest in real estate through Vietnamese partners by having a local partner co-own the property. This makes transactions easier and helps resolve arising issues.
Thus, foreigners can invest in real estate in Vietnam by purchasing property in commercial projects or participating in real estate development projects through enterprises, but they must be mindful of the regulations and restrictions regarding ownership rights and eligible types of property. For more specific advice on real estate business types for foreigners in Vietnam, please contact Zora.vn for the best assistance.