Vietnam Property Law Update: What Foreign Investors Need to Know Before Year-End

Vietnam continues to stand out as one of Southeast Asia’s most compelling real estate investment destinations. Over the past two decades, strong GDP growth averaging 6–7% annually, rapid urbanization in Ho Chi Minh City and Hanoi, and the rise of coastal hubs like Da Nang have driven significant appreciation across residential, commercial, and hospitality assets. 

As Vietnam enters a new development phase, Vietnam Property Law is undergoing major reforms as the country enters a new phase of real estate development and foreign investment.

 

 

Vietnam Property Law: Foreign Ownership

 

Foreigners cannot own land outright in Vietnam, but they may legally acquire property through a leasehold structure:

• Lease term: Up to 50 years, with potential extensions subject to government approval

• Ownership caps:

  • Up to 30% of units in a condominium building

  • Up to 250 landed houses within one administrative area

• Eligible properties must be in projects approved for foreign ownership

Foreign-invested companies may only hold land-use rights if tied to a licensed investment project through a Vietnamese legal entity. However, foreigners may also invest by acquiring equity in Vietnamese companies that own real estate, subject to regulatory conditions.

Overseas Vietnamese (Viet Kieu) now enjoy expanded rights, with access closer to that of local citizens, making this group a key bridge between domestic and international capital.

 

Key Vietnam Property Law Updates

Recent reforms aim to increase transparency, reduce risk, and align pricing more closely with market realities:

 

1. Clearer Rules for Foreign Investors

 

Housing Law & Real Estate Business Law effective from August 2024

Reinforced ownership limits and clearer project eligibility requirements

Mandatory disclosure of project legal status and construction progress

Buyer deposits capped at 5% of contract value before project completion

 

2. Streamlined Treatment of Foreign-Invested Enterprises

 

Companies with up to 50% foreign ownership are now treated as domestic investors for land-related rights

Easier land acquisition, transfer, and mortgage processes

Encourages joint ventures and structured partnerships

 

3. Land Pricing & Lease Reforms

 

Decree 226/2025 removes fixed land price brackets, moving toward market-based valuations

Annual land lease rents reviewed every 5 years, with caps on increases

Greater transparency in compensation and clearance pricing

 

4. Tax & Regulatory Updates

 

Agricultural land tax exemptions extended until 2030

New banking capital adequacy rules (effective September 2025)

Updated Mineral Law (July 2025) governing strategic resources

 

What These Vietnam Property Law Changes Mean for Investors

 

More clarity, not fewer rules: The framework is clearer, but due diligence remains essential

Market-driven pricing: Land values are increasingly aligned with real demand

Better structures for entry: Joint ventures and Viet Kieu participation offer strategic advantages

Lower transaction risk: Tighter developer obligations and deposit limits protect buyers

 

Vietnam’s legal environment is becoming more defined, transparent, and investor-oriented. For foreign investors planning entry or expansion before year-end, understanding these changes is now a critical part of capital strategy, not just compliance.

Need Expert Guidance on Vietnam Property Law? Contact CVR