Understanding the regulations on land ownership in Vietnam, along with the conditions and incentives for renting industrial land for foreign investors, is crucial for smooth project implementation, especially with the new Land Law 2024 now in effect.
Rights to own and use industrial land for foreign investors
Ownership and usage of industrial land
Vietnam does not allow private ownership of land. Therefore, both Vietnamese citizens and foreign investors in Vietnam do not have ownership rights over residential or industrial land but instead hold land use rights.
Foreign investors are entitled to use industrial land in Vietnam for purposes such as business and production through the following forms:
- The State allocates land for investment projects.
- Investors can lease land directly from the State or through industrial real estate development entities.
Purchase and transfer of industrial land
The Land Law 2024 allows foreign investors to purchase and transfer land use rights within industrial parks, industrial clusters, and high-tech zones. This provision enables greater flexibility for investors in utilizing land use rights as an asset for capital mobilization and business expansion in Vietnam
Duration of industrial land leases
Depending on the project, particularly in sectors prioritized for investment or in economically disadvantaged areas, land lease terms may include preferential conditions such as:
| No. | Project Type | Land Lease Duration |
| 1 | Projects in priority investment sectors | 3 years |
| 2 | Projects in economically disadvantaged areas | 7 years |
| 3 | Projects in especially disadvantaged areas | 11 years |
| 4 | Projects with special priority for investment | Entire operational duration of the project |
Foreign investors wishing to extend their land lease must apply for permission and submit an extension request at least six months before the expiration of their land use rights. The lease duration must align with the approved project duration but cannot exceed 50 years, or 70 years in certain special cases.
Financial obligations related to land use rights
Before being granted a land use rights certificate, investors are required to fulfill the following financial obligations:
- Land use fees,
- Land use rights registration fees,
- Appraisal fees,
- Certificate issuance fees,
- Land compensation fees (if applicable).
During the operational phase, investors must pay:
- Land rent,
- Non-agricultural land use fees,
- Agricultural land use fees,
- Resource taxes (if applicable).
From August 1, 2024, under the revised Land Law, the fixed land price framework has been abolished. Each locality will independently determine its land price table, which will be adjusted annually to better align with market land prices.
Xem thêm: Procedures for leasing industrial land in Vietnam for FDI enterprises
Incentives for land lease exemptions/reductions
| Criteria | Exemption | Reduction |
| – Sectors with special investment incentives, which are located in areas with specially difficult socio-economic conditions or economic zones. – Construction of worker housing within industrial parks. | Exempt for the entire project duration | Not applicable |
| – Sectors with investment incentives; – Business & production relocation under planning or due to environmental pollution. | 3 years from the start of operations | Not applicable |
| Areas with difficult socio-economic conditions. | 7 years from the start of operations | Not applicable |
| – Areas with specially difficult socio-economic conditions, economic zones; – Sectors with special investment incentives; – Sectors with investment incentives located in difficult socio-economic areas. | 11 years from the start of operations | Not applicable |
| – Sectors with investment incentives located in specially difficult socio-economic areas or economic zones. – Sectors with special investment incentives located in areas with difficult socio-economic conditions. | 15 years from the start of operations | Not applicable |
| Agricultural sectors affected by natural disasters or fires resulting in less than 40% production loss. | Not applicable | Reduction corresponding to the level of loss |
| Agricultural sectors affected by natural disasters or fires resulting in 40% or more production loss. | Exempt for the affected year | Not applicable |
| Non-agricultural sectors affected by natural disasters, fires, or force majeure. | Not applicable | 50% reduction during the period of halted operations |
Regulations on housing for foreign investors
Under the current Housing Law, foreign investors in Vietnam can purchase, lease, receive transfers, or inherit commercial housing, including apartments and standalone houses within housing development projects.
However, these rights are subject to specific restrictions and conditions:
- Conditions: The apartment or commercial housing must be built on residential land or land designated for mixed-use, excluding properties located in areas critical to national defense and security as determined by the Vietnamese Government.
- Ownership duration: The maximum ownership term is 50 years, with the possibility of an extension if the investor continues to meet the conditions for property ownership in Vietnam. Foreign nationals married to Vietnamese citizens can own housing on a permanent, long-term basis in Vietnam.
- Quantity limits:
- No more than 30% of the apartments in a single residential building.
- No more than 250 standalone houses within an area equivalent to a ward.
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