Land use rights are not granted to foreign individuals in Vietnam

The information comes following a spate of recent rumours which suggested that several Chinese nationals who had entered the country for business and investment purposes had successfully acquired land close to key structures of national defence and security.

Upon becoming aware of the circulation of this gossip, the Ministry of Natural Resources and Environment requested that localities launch probes into them, handle any violations discovered in accordance to the law, and make any results public.

In line with provisions of Article 5 of the 2013 Land Law which came into effect on July 1, 2014, foreign individuals are not entitled to obtain land use rights domestically. At present, the Land Law does not include any regulations regarding land allocation, land lease, or recognition of land use rights by foreign individuals, therefore there is no certification that can be granted with regard to land use rights for foreigners in the country.

The Land Law stipulates that the state can either allocate or lease land to foreign-invested enterprises as a means of initiating investment projects locally.

In the event a project is implemented on an island, coastal, or border areas, land allocation or land lease can only be carried out with the written approval of the Ministry of Defense, the Ministry of Public Security, and the Ministry of Foreign Affairs.

This is also the case for land leases or sub-leases at industrial parks, industrial complexes, export processing zones, hi-tech parks, or economic zones.

The 2014 Housing Law, which came into effect on July 1, 2015, states that foreign individuals are permitted to own houses in Vietnam if they are able to meet certain conditions. Despite this, due to the Housing Law not being consistent with the Land Law, there is no basis by which to certify land use rights for foreign individuals and grant them permission to own houses in the country. VOV