use rights and certificates of land use rights and ownership of houses and
other land-attached assets (“Certificates”)
1. What are the
are documents issued by the State evidencing the lawful right to use land and
to own assets (such as houses and buildings) attached to the land.
2. How the
Certificates concerning apartment buildings are granted?
regards the Certificates concerning apartment buildings:
The developers shall be granted the Certificates for the land area under the
projects according to the following provisions:
Developers are granted the Certificates for any area of land to build apartment
buildings and related infrastructure facilities (including buildings for
commercial purposes). Such approval will
be based on an approved detailed master plans;
A Certificate will not be issued for any area of land used for roads and other
infrastructure not related to the apartment project. This includes facilities serving people
living in and outside the apartment project not used by the developer for the
provision of services to the apartment project (“Area 1”).
Apartment owners will be granted Certificates in respect of land which is for
the use of all apartment owners in common (“Area 2”).
The developer Certificates will be adjusted as and when the common area
Certificates are issued for Area 2.
3. How can the
foreign-invested companies in Vietnam obtain the land use right?
companies can obtain the land use rights by way of
land allocation from the State with land use levy;
land leased directly from the State with annual land rental or full one-off
rental for the entire lease period;
land lease or land sublease from permitted landlords according to prevailing
4. For which purposes
can the foreign-invested companies use land under the form of land allocation
with land use levy?
projects for the construction of houses for sale or for a combination of sale
5. How long is the
term for land allocation?
The determination of the term will be based
on the scope and duration of the project.
However it cannot exceed 50 years (and 70 years in special
The term may be renewed at the discretion of
The term for land allocation will commence on
the date the decision on land allocation is issued by the competent State
6. What are rights
and obligations of foreign-invested companies to the land allocated?
enterprises that are allocated land with land use levy to implement projects
have the following rights and obligations (in addition to the general rights
and obligations of land users):
to transfer land use rights and land-attached assets under their ownership
during the land use term;
to lease land use rights and land-attached assets under their ownership within
the land use term;
to mortgage land use rights and land-attached assets under their ownership at
credit institutions which are licensed to operate in Vietnam within the land use
to contribute land use rights and land-attached assets under their ownership as
capital for cooperation in production and business within the land use term.
above rights are applicable even if the foreign-invested enterprises are
entitled to exemption from or reduction of land use levies.
7. What categories of
foreign-invested companies may lease land to implement projects?
companies can lease land directly from the State with the form of annual land
rental or full one-off rental for the entire lease period.
companies can also lease and sublease land from the following permitted
developers in accordance with the laws:
a) Economic organizations that are allocated land
with land use levy by the State, or leased land with full one-off rental
payment for the entire lease period;
b) Self-financed public non-business organizations
leasing land with full one-off rental payment for the entire lease period from
the State and for which the paid rental does not originate from the state
c) Economic organizations or public non-business
organizations using leased land from the State with annual land rental;
d) Economic organizations acquiring the land use
rights, including the agricultural land use rights;
e) Economic organizations which are approved by
competent state agencies to change the land use purpose;
f) Economic organizations that receive land use
rights as contributed capital from households, individuals or other economic
7.2. Economic organizations that are leased land for
construction of underground facilities;
7.3. Overseas Vietnamese, including:
a) Overseas Vietnamese investing in Vietnam who are
allocated land with land use levy or leased land with full one-off rental
payment for the entire lease period by the State;
b) Overseas Vietnamese who acquire land use rights in industrial parks,
industrial clusters, export processing zones, hi-tech zones or economic zones;
c) Overseas Vietnamese leasing or subleasing land in
industrial parks, industrial clusters, export processing zones, hi-tech zones
or economic zones;
d) Overseas Vietnamese investing in the construction
of underground facilities and leasing land with full one-off rental payment for
the entire lease period.
7.4. Foreign-invested companies, including:
a) Foreign-invested companies that lease land from
the State with full one-off rental payment for the entire lease period or are
allocated land with land use levy to implement projects in Vietnam;
b) Foreign-invested companies using land formed
through the purchase of shares of Vietnamese enterprises by the foreign
c) Foreign-invested companies leasing or subleasing
land in industrial parks, industrial clusters, export processing zones, hi-tech
zones or economic zones;
d) Foreign-invested enterprises investing in the
construction of underground facilities and leasing land with full one-off
rental payment for the entire lease period.
7.5. Joint ventures.
8. How long is the
term granted is at the discretion of the authorities based on the scope of the
investment projects. The maximum term is
50 years. A term of up to 70 years may
be granted in special circumstances. Extension is at the discretion of the
term for land lease will commence on the date the decision of land lease is
issued by the competent state agency.
9. What are rights of
foreign-invested companies to the leased land?
current contents regarding the rights of foreign-invested companies to the land
leased in this part are still applicable.
regards the contents on the sale and the lease of houses in Vietnam, please
refer to part G.4 below for detailed information.
matters in relation to land use rights
10. How are the land
price ranges determined?
Government shall determine land price ranges once every 5 years for each type
of land and for each region. During the implementation of land price ranges, if
the market price increases 20% or more over the maximum price or reduces 20% or
more below the minimum price prescribed in land price ranges, the Government
shall adjust land price ranges accordingly.
11. How the land
price tables are issued?
on the land price ranges and the principles of land valuation, methods of land
valuation, the land price tables shall be issued once every 5 years and
published on January 01 of every year by the provincial People’s Committee.
land price tables shall be used for calculation of
(i) land use levy;
(ii) land use tax;
(iii) charges and
fees in land management and use;
(iv) fines for
administrative violations in the field of land;
(v) compensation to
the State for damage caused in land management and use;
(vi) valuation of
land use rights.
12. How the specific
land prices are decided?
provincial agency on land management shall assist the provincial People’s
Committee in the determination of specific land prices. The provincial People’s
Committees shall thereafter decide on specific land prices which shall be used
for calculation of:
(i) land use levy;
(ii) land rental;
(iii) valuation of
land use rights;
when State recovers land.
Notarization of Land
13. Which contracts
require notarization or certification?
on transfer, donation, mortgage or contribution as capital of land use
rights, and land use rights with
land-attached assets, must be notarized or certified accordingly. The following
types of contracts need not be notarized or may be notarized at the request of
the parties: contracts in which one party or all parties involved in the
transaction is/are a real estate business organization or organizations (i.e. contracts on lease or sublease of land
use rights, and land use rights with land-attached assets; contracts on
exchange of agricultural land use rights; contracts on transfer of land use
rights, and land use rights with land-attached assets).
owned by foreign individuals/organizations
14. Who are eligible
for being owners of residential houses in Vietnam?
Foreign individuals/organizations who invest in project-based housing
construction in Vietnam.
Foreign organizations include
foreign-invested enterprises in Vietnam;
branches and representative offices of foreign enterprises in Vietnam; and
foreign-invested funds and branches of foreign banks in Vietnam.
Foreign individuals who are allowed to enter Vietnam.
15. What are the
criteria for foreign individuals/organizations to own residential houses in
individuals/organizations shall own residential houses in Vietnam if they
invest in project-based housing construction in Vietnam;
buy, rent and purchase, receive, or inherit commercial housing including
apartments and separate houses in the project for housing construction (“Housing Transactions”), except for
areas under management relating to national defense and security as prescribed
in regulations of the Government. In this case:
foreign individuals will be eligible for homeownership as agreed in the Housing
Transactions, but not more than 50 years from the day on which they are granted
the Certificates; they may be also granted extension as prescribed in
regulations of the Government; where a foreign individual marries a Vietnamese
citizen or an overseas Vietnamese, he/she qualifies for long-term
foreign organizations will be eligible for the homeownership as agreed in the
Housing Transactions, but not longer than the duration stated in their
Investment Registration Certificates, including extension duration; duration of
the homeownership shall be determined from the day on which the foreign
organizations are granted the Certificates.
16. What are the
conditions for ownership of residential houses in Vietnam?
The applicable conditions for foreign individuals/organizations referred to in
paragraph 14.1 are: (i) have an Investment Registration Certificate; and (ii) the
houses are built under the approved projects.
The applicable conditions for foreign organizations referred to in paragraph
14.2 is: have an Investment Registration Certificate or a Permission to run its
business in Vietnam issued by the competent authorities in Vietnam.
applicable conditions for foreign individuals referred to in paragraph 14.3
are: (i) have a permission to enter Vietnam; and (ii) he/she is not a diplomat
and granted diplomatic immunity and privileges.