SOME CASES FOREIGNERS CANNOT BUY REAL ESTATE PROJECTS IN VIETNAM

I. Concept of "foreigner buying real estate projects in Vietnam" 

"Foreigner" means a person who carries a document determining foreign nationality (a type of document issued by a competent authority of a foreign country or the United Nations issuance, including passports or documents valid in lieu of passports) and stateless persons entering, exiting, transiting or residing in Vietnam. (Clause 1 Article 3 of the Law on entry, exit, transit and residence of foreigners in Vietnam 2014).

Pursuant to the provisions of Clause 2 Article 3 of Decree 02/2022/ND-CP, "real estate project" is defined as: "An investment project for the construction of a work formulated, appraised and approved in accordance with the law on construction". Real estate projects include: investment projects on house construction and construction works; investment projects on infrastructure construction for transfer or lease of land use rights. 

Thus, it can be understood that "foreigners buying real estate projects in Vietnam" means a person who carries documents determining foreign nationality, does not have Vietnamese nationality and buys investment projects to build works in accordance with the provisions of law. 

II. Cases where foreigners cannot buy real estate projects in Vietnam 

Based on the provisions of law on investment, law on housing, law on real estate business, ... Currently in Vietnam, the following cases in which foreigners cannot buy real estate projects in Vietnam: 

(i) In case foreign organizations and individuals are not subject to housing ownership in Vietnam as prescribed at Points a, b and c, Article 159 of the Law on Housing 2014 include:  

- Foreign organizations and individuals investing in building houses under projects in Vietnam in accordance with this Law and relevant laws; 

- Foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign investment funds and branches of foreign banks operating in Vietnam; 

-Foreign individuals are allowed to enter Vietnam. 

(ii) In case a foreign organization or individual fails to meet the conditions for housing ownership in Vietnam as prescribed in Clauses 1, 2 and 3, Article 160 of the Law on Housing 2014, including: 

-For foreign organizations and individuals specified at Point a, Clause 1, Article 159 of the Law on Housing 2014, they must have an investment certificate and have houses built erected in the project in accordance with the provisions of this Law and relevant laws. 

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For more information, please contact:

Hoang Pham (James) / Managing Partner at: hoang.pham@vselawyers.com

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Attention: This legal update is not an advice and should not be treated as such.