FAQ

Foreign developers do not necessarily need a local partner to develop real estate in Vietnam, but working with one can provide advantages. Here’s how it works:

1. Foreign Developers Without a Local Partner
 • Land Use Rights: Foreign entities cannot own land in Vietnam but can lease land from the government or private owners for up to 50 years (extendable to 70 years) to develop projects.
 • 100% Foreign-Owned Company (FOC): Foreign developers can establish a wholly foreign-owned enterprise (WFOE) in Vietnam to develop and sell real estate.
 • Legal & Bureaucratic Challenges: Navigating Vietnam’s regulations, permits, and land acquisition process can be complex.

2. Foreign Developers With a Local Partner (Joint Venture - JV)
 • Land Access: Local partners can own land, making it easier to acquire prime locations.
 • Faster Approvals: Government approvals and permits are often smoother with a Vietnamese partner.
 • Market Insights: Local firms understand regulations, supply chains, and customer preferences better.

3. Common Structures for Foreign Developers
 • Leasing Land: Direct lease from the government or private owners.
 • Joint Venture (JV) with a Vietnamese Company: Shared ownership; typically, the local firm provides land, and the foreign developer brings expertise and capital.
 • Buying Shares in a Local Real Estate Company: Indirect ownership through equity investment.

1. Ho Chi Minh City (HCMC) – The Financial Hub
 • Why? Strong economic growth, high demand for residential and commercial properties, and ongoing infrastructure improvements.
 • Hot Areas:
 • Thu Duc City – Rapidly developing into Vietnam’s “Silicon Valley” with high-tech parks and universities.
       + Former District 9 (now part of Thu Duc City) – Future growth due to the expansion of industrial zones and metro projects.
       + Former District 2 (Thao Dien, An Phu) (now part of Thu Duc City) – Expensive but still growing due to high expat demand.
 • Binh Chanh & District 7 – Upcoming residential areas near new transport hubs.

2. Hanoi – The Political & Business Center
 • Why? Rising foreign investments, new metro lines, and strong urban expansion.
 • Hot Areas:
 • Tay Ho (West Lake) – High-end properties with strong expat demand.
 • Hoai Duc & Dong Anh – Future growth due to planned infrastructure projects.
 • Gia Lam – Home to VinCity’s mega urban projects.

3. Da Nang – Tourism & Smart City Growth
 • Why? Strong tourism industry, growing expat community, and improving infrastructure.
 • Hot Areas:
 • Son Tra Peninsula & My Khe Beach – High-end beachfront condos and villas.
 • Lien Chieu District – A future logistics hub with rising land value.

4. Nha Trang & Phu Quoc – Tourism & Resort Investments
 • Why? Government incentives, booming tourism, and rising land prices.
 • Hot Areas:
 • Nha Trang City Center & Long Beach – Condotels and resort properties.
 • Phu Quoc’s Bai Truong & An Thoi – Government-backed SEZ with growing tourism infrastructure.

5. Binh Duong & Long An – Industrial & Residential Boom
 • Why? Close to HCMC, attracting foreign manufacturers and industrial workers needing housing.
 • Hot Areas:
 • Binh Duong New City – A planned smart city with high-tech industries.
 • Long An Province – A key logistics hub benefiting from infrastructure projects.

Key Investment Types
 • Luxury apartments (HCMC & Hanoi) – High demand from expats and wealthy locals.
 • Shophouses & townhouses (Tourist hotspots) – Strong rental income potential.
 • Industrial real estate (Binh Duong, Long An) – High ROI due to Vietnam’s manufacturing boom.

Using a real estate broker when investing in Vietnam’s real estate market can be highly beneficial, especially for foreigners. Here’s why:

1. Navigating Legal Restrictions

Vietnam has complex real estate laws for foreign investors, including ownership limits and restricted zones. A local broker understands these regulations and ensures compliance, preventing costly mistakes.

2. Access to the Best Deals

Brokers have insider knowledge of the market, including off-market properties and developer pre-sales, which may not be easily accessible to foreign buyers.

3. Negotiation & Pricing

Brokers can help negotiate better prices and payment terms, especially with developers or sellers who may otherwise overcharge foreign investors.

4. Language & Bureaucracy Support

The process involves contracts, legal documents, and paperwork—most of which are in Vietnamese. A broker can bridge language gaps and handle documentation, making the transaction smoother.

5. Due Diligence & Risk Management

Not all projects are legally sound. Brokers help verify project legality, ownership rights, and potential risks like disputes, incomplete developments, or fraudulent deals.

6. Property Management & Rental Assistance

If you’re investing for rental income, some brokers offer property management services, helping with tenant sourcing, lease agreements, and maintenance.

Yes, foreigners and foreign entities can invest in Vietnam’s real estate market, but there are specific restrictions and conditions:

1. Foreign Individuals

• Allowed Purchases: Foreigners can buy apartments and houses in commercial housing projects (not in areas designated for national defense and security).

• Ownership Limits: A foreigner cannot own more than 30% of the apartments in a single condominium or more than 10% of houses in a landed housing project.

• Leasehold Only: Foreigners are granted a 50-year leasehold (renewable), but they cannot own land outright.

• Usage Restrictions: The property must be used for personal residence or leasing but not for business or resale as a primary business.

2. Foreign Companies & Entities

• Foreign-invested companies can lease land for commercial purposes but cannot buy and own land outright.

• They can develop real estate projects but must comply with Vietnam’s investment laws and obtain government approvals.

Other Considerations

• Investments in certain locations (e.g., near military or government sites) may be restricted.

• Real estate laws in Vietnam are subject to change, so it’s advisable to consult with a local legal expert before making any investments.