Land in Vietnam belongs to the entire people with the State as representative owner, and users hold land use rights under Land Law No. 31/2024/QH15. Foreign-invested companies usually lease land from the State or sublease it in an industrial park, while Vietnamese investors have wider routes. These answers explain the options, the obligations and how to check title.
Re-checked against official Vietnamese sources every month · Reviewed · How we check
Can foreigners own land in Vietnam?
No one, Vietnamese or foreign, owns land outright in Vietnam. Under Land Law No. 31/2024/QH15, in force since 1 August 2024, land belongs to the entire people, with the State as representative owner and unified manager, and users hold land use rights for a set term, recorded on a certificate of land use rights and ownership of assets attached to land. A foreign investor obtains those rights through a foreign-invested company, mainly by leasing land from the State, subleasing in an industrial park or acquiring a company that already holds land. Foreign individuals cannot hold land use rights, although they may own certain housing. Vietnamese citizens and domestic companies have wider routes, including buying land use rights from other users.
What is the difference between land allocation and land lease, and between annual and one-off rent?
Land allocation grants land use rights against a land use fee and is used mainly for housing projects built for sale or for sale and lease; foreign-invested and domestic developers can both receive it. Most other projects receive a State land lease, with rent paid either annually or once for the whole term. The choice matters: a one-off payment lets you transfer, sublease, mortgage or contribute the land use rights as capital, while annual rent generally limits you to dealing with the assets on the land and your rights under the lease contract, and the rent is periodically adjusted. From 1 January 2026, Resolution No. 254/2025/QH15 generally lets lessees choose either payment method, subject to exceptions in the Land Law.
How long is the land use term for an investment project?
Land for an investment project is allocated or leased for the project's operating term, generally up to 50 years under Article 172 of Land Law No. 31/2024/QH15. Projects with large capital that is recovered slowly, or located in areas with difficult or extremely difficult socio-economic conditions, can receive up to 70 years. Industrial park sublessees receive a term tied to the park's infrastructure project. Before expiry, a compliant land user may apply for an extension within the statutory maximum. By contrast, residential land used by Vietnamese individuals is held on a long-term, stable basis without a fixed term. Align your investment registration term, financing tenor and lease term before you sign.
Can a foreigner buy a house or apartment in Vietnam?
Yes, within limits. Under Housing Law No. 27/2023/QH15 and Decree No. 95/2024/ND-CP, a foreign individual permitted to enter Vietnam, and a foreign-invested company, may own commercial housing in development projects outside defence and security areas. Foreigners may own no more than 30% of the apartments in a building and no more than 250 houses in a ward-level area. An individual's ownership lasts up to 50 years from the certificate and can be extended by up to 50 more years on application at least three months before expiry; a company's term follows its investment registration. Vietnamese citizens own housing without a time limit. A draft amendment published in September 2026 would bar foreigners from villas and townhouses.
Most foreign manufacturers sublease serviced land from the industrial park developer, which leases the land from the State, or simply rent a ready-built factory under a commercial lease. Under Article 202 of Land Law No. 31/2024/QH15, where the developer pays annual rent it may sublease only on annual terms, but where it has paid rent once for the whole term it may sublease with either a one-off or an annual payment. Your rights follow your payment method: a one-off sublease generally lets you transfer and mortgage the land use rights, while an annual sublease largely limits you to the assets on the land. The term follows the park's infrastructure project, so check how many years remain before you sign.
How do planning, auctions and bidding affect access to land for a project?
The State allocates or leases land only for a use consistent with approved planning, principally the provincial land use plan and, for construction, the zoning plans under Law No. 47/2024/QH15 on Urban and Rural Planning. Project land is then assigned by auction of land use rights, by bidding to select an investor, or without either in the specific cases listed in the Land Law. Land-intensive projects such as industrial park infrastructure, housing developments and golf courses may first need investment policy approval under Law No. 143/2025/QH15 on Investment, which can precede the auction or bidding. A foreign bidder that wins must implement the project through a company established in Vietnam. Confirm the plot's planning status in writing before committing.
What happens if I do not use the land or fall behind schedule?
Under Article 81 of Land Law No. 31/2024/QH15, land allocated or leased for an investment project that is not used for 12 consecutive months after handover, or whose use falls more than 24 months behind the project schedule, can be recovered. The investor may obtain an extension of up to 24 months but must pay the State an additional amount for that period; if the land is still not used when the extension ends, the State recovers it without compensation for the land or the assets on it, save for force majeure. Decree No. 226/2025/ND-CP clarified when the extension period starts. Build realistic milestones into your investment registration and request any extension early and in writing.
Can a foreign-invested company use agricultural land?
Yes, but usually by leasing it rather than buying it. The normal route is a State lease for an approved agricultural, forestry or aquaculture project; other routes include a capital contribution of land use rights by a Vietnamese land user or acquiring a company that already holds the land. Domestic companies can also take transfers of agricultural land from households and individuals, provided the competent People's Committee approves an agricultural land use plan under Land Law No. 31/2024/QH15. Rice land and protection and special-use forests are tightly protected, and converting agricultural land to another use needs permission consistent with the land use plan. Large conversions of rice or forest land also require investment policy approval.
How do I check land title, mortgages and encumbrances before I buy or lease?
Start with the certificate of land use rights and ownership of assets attached to land, and verify it against the land register kept by the land registration office under the provincial Department of Agriculture and Environment (formerly the Department of Natural Resources and Environment). Check the registered land user, land use purpose, term, whether rent is annual or paid once, recorded mortgages and other restrictions, and whether land use fees and rent have been paid. Mortgages over land use rights must be registered with the land registration office under Decree No. 99/2022/ND-CP. Also check planning status, recovery notices, disputes and construction permits and, when buying a company, its investment registration and project progress. Instruct a Vietnamese law firm.
Only partly. The State may recover land for defence, security and socio-economic development in the national or public interest in the cases listed in Land Law No. 31/2024/QH15, and Resolution No. 254/2025/QH15 added cases from 1 January 2026, including projects in free trade zones and the international financial centre and, where an investor has agreed terms for over 75% of the land area and land users, the remaining land. Compensation is based on the provincial land price table and an adjustment coefficient. If you lease land with annual rent, you are generally compensated not for the land itself but for remaining investment costs in the land and for assets on it. Keep full cost records and check treaty protection.
Ask the Be Vietnam Wise advisor. It checks official Vietnamese sources and points you to the governing law, or read how to find and check a Vietnamese lawyer.
This page gives legal and tax information, not legal advice. Rates, thresholds and procedures change; the answers are re-checked against official sources every month, but you should confirm anything important with the relevant authority or a licensed Vietnamese lawyer before you act.