Change of Land Use Purpose in Vietnam for Foreign Investors

For foreign investors, changing the land use purpose in Vietnam is not merely an administrative procedure but a high-risk legal process closely tied to investment approvals, zoning plans, and State discretion.

1. Is Change of Land Use Purpose Allowed for Foreign Investors?

Determine whether the proposed change of land use purpose requires approval or registration under the applicable land rules. Review planning consistency, the land user's status and the project documents before changing the actual use.

For foreign investors, this right is even more restricted and typically applies in cases such as:

• Conversion between permitted commercial or industrial land use purposes;

• Adjustment of land use purpose within an approved investment project;

• Changes aligned with updated zoning or development plans.

Foreign investors cannot freely change land use purposes in the same manner as domestic land users, and any unauthorized change may result in administrative penalties or land recovery by the State.

2. Key Legal Risks in Practice

In practice, foreign investors face several critical risks when seeking to change land use purpose, including:

• Rejection due to inconsistency with land-use master plans or sectoral planning;

• Failure to update investment registration certificates in parallel with land approvals;

• Additional land use fees or financial obligations imposed after approval;

• Invalid project structures where land approvals and investment approvals are not legally aligned.

3. How Jurion & Partners Support Foreign Investors

Jurion & Partners can review the proposed conversion, planning documents and investment structure to identify material legal risks and the approvals that may be needed.

Our services include:

• Legal assessment of zoning, planning, and land use feasibility;

• Structuring investment and land approvals in a legally consistent manner;

• Advising on land use fees, financial obligations, and regulatory exposure;

• Representing investors in discussions with licensing and land authorities;

• Resolving disputes arising from rejected or revoked land use approvals.

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

View more >> Prenuptial Agreement on Real Estate Assets for Foreigners in Vietnam