Can Foreign Investors Own Land in Vietnam? What the Law Really Allows

Vietnam is an increasingly attractive destination for foreign investors, particularly in real estate and project-based investments. However, Vietnam’s land regime differs fundamentally from freehold systems in many other jurisdictions, and misunderstandings regarding land ownership and land use rights often lead to invalid transactions and serious legal risks. In case you need advice, please contact Apolo Lawyers via email at contact@apolo.com.vn or Hotline (+84) 903 419 479 for the best advice and support.

1. Foreign Investors and Land Ownership: The Legal Reality in Vietnam

Vietnamese law does not recognize private land ownership, as land is owned by the entire people and managed by the State. Consequently, foreign investors cannot own land outright in Vietnam.

However, the law does allow foreign investors to access land through land use rights, primarily via:

• Long-term land lease from the State;

• Land sublease within industrial zones, economic zones, or hi-tech parks;

• Acquisition of land use rights through permitted real estate projects, subject to strict legal conditions.

Can Foreign Investors Own Land in Vietnam? What the Law Really Allows

2. What Foreign Investors Are Legally Allowed to Do and the Hidden Risks

While the legal framework appears straightforward, practical implementation is far more complex.

Foreign investors may:

• Lease land for commercial or industrial purposes;

• Own buildings and assets attached to leased land;

• Transfer, mortgage, or sublease land use rights only if statutory conditions are fully satisfied.

The key risks arise from:

• Improper project approvals or land allocation decisions;

• Non-compliance with zoning and master planning;

• Invalid land use right transfers due to procedural defects;

• Hidden restrictions embedded in investment or land lease approvals.

Many transactions fail not because of market factors, but because critical land-related legal issues are discovered too late.

Can Foreign Investors Own Land in Vietnam? What the Law Really Allows

3. How Apolo Lawyers Protect Foreign Investors in Land Transactions

At Apolo Lawyers, we assist foreign investors in navigating Vietnam’s land regime with a risk-based and transaction-focused approach.

Our role typically includes:

• Legal due diligence on land use rights, zoning, and project legality;

• Structuring compliant land access solutions for foreign-invested projects;

• Advising on land lease terms, project approvals, and regulatory risks;

• Representing investors in negotiations with authorities and local partners;

• Resolving land-related disputes and enforcement matters.

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