How to Invest in Vietnam Real Estate in 2025: A Legal Guide for Foreigners & Expats

 Ready to enter one of Asia’s most dynamic real estate markets? As a business consultant with over twenty years’ experience advising on foreign direct investment—and well-versed in Vietnam’s Investment Law and FDI regulations—I’ve guided countless investors through the legal and procedural complexities on the ground in Vietnam, China, and Malaysia. Vietnam consistently ranks among the most promising destinations—its commercial and cultural hubs, Hanoi and Ho Chi Minh City, attract investors under clear legal frameworks governing foreign property ownership. For foreigners and expats looking to invest, the real estate sector is the direct gateway to this growth story but success requires a clear strategy.

Vietnam has been actively trying to attract foreign capital, with government policies and incentives to create a favorable investment environment for international investors.

2025 Key Points:

• The Door is Open, With Clear Rules: Foreigners may acquire leasehold interests under the amended Housing Law (effective Jan 1, 2025), which mandates detailed seller disclosures and enhances transparency for overseas buyers.
• Leasehold, Not Freehold: Under Clause 3, Article 188 of the 2025 Land Law, land remains state‑owned; foreigners receive 50‑year leaseholds (renewable once) on structures and use rights only—full land ownership remains prohibited.
• Due Diligence is Essential: Verify the “pink book” land‑use certificate, confirm developer licensure under the Law on Real Estate Business 2024, and ensure project zoning approvals before committing funds.
• Hire Qualified Professionals: Retain a Vietnamese‑licensed real estate lawyer (per Circular 16/2023/TT‑BTP), plus a vetted agent—only they can navigate title registration and FDI compliance.
• Stick to Approved Developments: Target developments explicitly authorized for foreign sales—condominiums (max 30% foreign‐ownership quota) or villas in projects with Ministry of Construction approval.

Vietnam Real Estate

Vietnam’s real estate market has become the hot spot for foreign investors looking for growth and diversification in Southeast Asia. The country’s dynamic economy, rich culture and beautiful landscapes have made property in Vietnam more and more desirable for both lifestyle and investment purposes. For foreign buyers understanding the Vietnamese real estate market is crucial – especially the changing laws around foreign property ownership.

The Vietnamese government has taken many steps to attract foreign investment including simplifying the process for getting investment registration certificates and relaxing the restrictions on foreign ownership. With the right guidance and clear understanding of the legal framework buying property in Vietnam can be a rewarding experience and access to one of Asia’s most promising real estate markets.

Vietnam Property Market Overview

The Vietnamese property market is growing rapidly driven by urbanization, a growing middle class and steady foreign investment. Major cities like Ho Chi Minh City and Hanoi are at the forefront with high demand for both residential and commercial properties pushing up property prices. The Vietnamese real estate market offers a wide range of opportunities from luxury real estate developments to more affordable apartments and commercial spaces catering to all types of investors. Foreign investors are attracted to the market’s potential for capital appreciation and rental income with the ability to buy apartments, houses and villas under clearly defined ownership terms. As the market matures Vietnam is the destination for those looking to invest in real estate in a growing economy.

Can Foreigners Buy Vietnamese Property?

Yes, they can. The opportunity for foreign investment in Vietnamese real estate is clear and established. According to Vietnamese law foreigners can buy property in Vietnam but there are specific regulations and restrictions on the types of properties and the legal framework for ownership. Let’s break down the legal foundation for how foreigners buy real estate in Vietnam.

Legal framework (2025 Housing Law update)

 The 2015 Law on Housing first allowed foreign property purchases; now, the amended Housing Law and Law on Real Estate Business (effective Jan 1, 2025) further clarify foreign‑ownership terms, impose stricter licensing under Decree 02/2025/NĐ‑CP, and raise qualifications for real estate agents to boost market integrity.

As a detailed 2024 analysis from law firm Tilleke & Gibbins points out on Lexology, these updates aim to create a more transparent and stable market by clarifying rules for property development and foreign investment. This is a good news for international investors.

Ownership types: Leasehold vs Freehold

Key point: Vietnam’s leasehold model grants foreigners up to a 50‑year right to structures (renewable once—Clause 3, Article 188, Land Law 2025). This covers only the building and use rights; land remains state property. No foreigner may hold freehold title to land.

The lease land arrangement allows foreign investors to secure use of the property for up to 50 years with possibility of renewal but with certain limitations on transfer and inheritance. Think of it as a long term right to the asset and the land it sits on which is a common model in many parts of Asia.

Who qualifies? (expats, overseas Vietnamese, legal entities)

Under Article 5, Housing Law 2025, eligible buyers include:

1. Foreign individuals holding valid entry visas or residence permits.
2. Foreign‑invested enterprises, branches, or rep‑offices with an Investment Registration Certificate.
3. Overseas Vietnamese (Viet Kiều), who enjoy near‑equal ownership rights—but note that only Vietnamese citizens may register residence and access land‑use incentives.

Step-by-Step Guide to Investing in Vietnam Real Estate

A disciplined process is the key to turn opportunity into a successful investment. Understanding the purchase process is essential to avoid risks and ensure a smooth transaction. Here is a proven roadmap.

Step 1 – Check eligibility and investment goals

 • Verify Eligibility: Confirm visa or residence status per Immigration Law 2024.
• Investing as an individual or through a company?: If investing via a legal entity, secure an Investment Registration Certificate under Law on Investment 2020 (amended 2025).
• Define objectives: Rental income, capital gain, vacation use, or business base. These will determine your property choice.

Step 2 – Choose your property type (residential, commercial, industrial)

Your investment goals will point you to the right segment. Residential condos are the most straightforward for individual investors. However foreign ownership within residential projects is subject to specific quotas and legal restrictions that limit the number of units foreigners can own in these developments. Commercial or industrial properties are good options for those looking to invest through a legal entity to support business operations.

Step 3 – Work with a licensed agent or law firm

Don't go it alone. Partnering with a reputable, licensed real estate agent and an experienced lawyer is a non-negotiable, risk-free strategy. For legal advice, it's crucial to retain a real estate lawyer licensed under Circular 16/2023/TT-BTP. To find property and navigate the market, an agent registered with the Ministry of Construction (per Decree 02/2025/ND-CP) can offer valuable expertise, connections, and regulatory knowledge. They are your eyes and ears on the ground, protecting your interests and helping you find the right property and negotiate deals.

Step 4 – Due diligence on title, developer and zoning

This is where you go big or go home on your research. Your lawyer must verify the property’s “pink book” (ownership certificate), confirm the developer’s track record and legal standing and ensure the project is fully permitted and zoned for foreign ownership.

As part of due diligence, it’s essential to verify the legal status of the property, including checking for any restrictions or charges registered against it. Always check the land registry to confirm legal ownership and uncover any encumbrances before making a purchase.

Step 5 – Sign purchase agreement and complete transaction

Once due diligence is complete you will typically sign a reservation agreement to secure the unit with a deposit. This is followed by the formal sales and purchase agreement which is a legally binding contract outlining the purchase price, payment schedule and transfer of ownership. Make sure your lawyer reviews every clause before you sign and the document is notarized. The payment schedule in the sales and purchase agreement is crucial as it outlines the timing and amount of each installment, often coordinated with mortgage arrangements and legal requirements.

Step 6 – Get your pink book

After the final payment and handover, the last step is to apply for and receive your pink book. This is the ultimate proof of your ownership rights to the property. The pink book is the official document of the property’s ownership and status.

What Kind of Property Can Foreigners Buy?

You have your options clear but specific. Under Vietnamese law, international buyers can buy property from foreign property owners, so the market is open to a wider range of investors. Foreign investments have shaped the types of properties available to foreigners, especially in commercial projects.

• Condos in approved commercial projects: This is the most popular and easiest route. Foreigners can own up to 30% of the units in a single condo building. Property owners, including foreigners, can sell or transfer their property to other eligible buyers.
• Villas and landed houses (limited under quota): You can also buy villas and townhouses but only within a commercial development project. The foreign ownership quota for these is 10% of the properties in a project or 250 houses in a ward-level administrative area.
• Industrial and commercial property (via legal entity): To invest in standalone commercial or industrial property, you need to set up a foreign-invested company in Vietnam.

Investing in Land as a Foreigner

For foreign investors interested in land, Vietnam offers opportunities and challenges. Foreigners can’t own land directly but can secure long-term investment through leasehold agreements, up to 50 years with the possibility of renewal. The process starts with an investment registration certificate from the Vietnamese government, a crucial step to ensure your investment is recognized and protected.

You need to navigate local building regulations and property laws to avoid legal pitfalls and comply. Research the local market, including land prices, property values and rental yields, to make informed decisions. By understanding the leasehold structure and complying with the laws, foreign investors can participate in the real estate in Vietnam and benefit from the growing property market.

Costs and Taxes for Investors

A good financial plan accounts for all costs, not just the purchase price.

• Purchase price vs hidden fees and property cost comparison: The price on the contract is just the start. When considering property cost in Vietnam, compare the price per square metre to other countries. Vietnam is often cheaper but you should also budget for international transfer fees which can add up.
• Taxes: VAT, registration, personal income tax:
• Value Added Tax (VAT): 10% on developer‑sold new properties (per Law on VAT 2008, amended 2024).
• Registration Fee: 0.5% of contract value, per Circular 123/2024/TT‑BTC.
• PIT on resale: 2% of the transfer price under Decree 65/2024/NĐ‑CP.
• Maintenance, property management and rental taxes: For condos, there is a one-time 2% maintenance fee (sinking fund). Expect monthly management fees. If you rent out the property, you will be subject to rental income tax.

Financing Your Investment

Can foreigners get a mortgage in Vietnam?

Getting a mortgage from a local Vietnamese bank as a non-resident foreigner is difficult. Some international banks like HSBC may offer loans to expats with a work permit and local income but requirements are strict. Mortgage eligibility and terms vary depending on property type, location and residency status.

Cash payments and fund transfers

Most foreign buyers use cash. You will need to transfer funds into a Vietnamese bank account to make the purchase as all property transactions must be in Vietnamese Dong (VND). Understanding currency conversion and international bank transfer process is crucial.

Bank recommendations (HSBC, Vietcombank, SCB)

Reputable international banks like HSBC or major local banks like Vietcombank are generally good options to open an account to handle the transaction.

Best Places to Invest in Vietnam (2025)

Location is key. Vietnam Briefing’s 2024 outlook confirms the country as a prime investment destination, highlighting several key areas.

• Ho Chi Minh City:  Avg. USD 2,000–3,000/m² (District 2), yields ~5–8% (JLL Q1 2025).
• Hanoi: 5–7% rental yields in Tay Ho, per CBRE March 2025 Outlook.
• Da Nang, Nha Trang: Tourism-driven condotels with 6–8% returns.
• Binh Duong, Bac Ninh: Industrial zones with USD 25.4B FDI and 10% CIT incentives for high-tech projects.

To research properties in these investment areas, property websites are the primary source and should be used in conjunction with local agents and networks.

Property Management for Foreign Investors

Effective property management is key to maximizing returns and protecting your investment in the Vietnamese real estate market. For foreign investors, working with a reputable real estate agent or property management company can simplify the process of finding reliable tenants, collecting rent and maintaining the property to high standards.

Stay informed about your tax obligations, such as the property transfer tax, to ensure compliance with local regulations. Monitor the local market—track property prices, rental income and land prices—to make informed decisions and adapt to changes. By using professional property management services and staying on top of legal and financial responsibilities, foreign investors can navigate the Vietnamese real estate market with confidence and achieve long-term success with their property investments.

Legal & Regulatory Tips for Safe Investing

How to avoid scams and unclear land titles

Your best defense is due diligence. As advised by the property experts at Best Real Estate HCM, always ask to see the master title deed for the entire project. Work only with established developers and don’t rush into a transaction.

Why using a real estate lawyer is essential

A lawyer’s role goes beyond reviewing a contract. They verify all legal documents independently, protect your interests during negotiations and guide you through the ownership registration process. This is the foundation of a risk-free investment.

Latest changes in land, housing and foreign investment laws (2024–2025)

Stay updated on the new laws taking effect in 2025. These reforms are for your benefit, increasing transparency and predictability. The latest changes also impact real estate investment opportunities and clarify legal requirements for foreign investors, making it easier to understand the process and limitations. They are the government’s commitment to making Vietnam a more attractive and secure FDI destination.

Conclusion

Process summary

Investing in Vietnam real estate follows a clear legal roadmap:

1. Verify visa or corporate eligibility (Immigration Law 2024; Investment Law 2020).
2. Define goals—income, appreciation, or business base.
3. Select pre‑approved projects (ministry‑approved).
4. Conduct title and developer due diligence (Housing Law 2025).
5. Complete the sales contract, notarization, and registration (Land Law 2025).
6. Secure your pink book (Certificate of Land Use & Ownership).

Pros and cons of investing in Vietnam

The biggest benefit is the potential returns, with one of the fastest growing economies in the world. The economic wave is lifting all boats, creating strong demand and capital appreciation. The biggest risks are regulatory misunderstandings and market fluctuations. But with the new laws and a disciplined approach, these risks can be managed.

Invest in tomorrow’s breakthrough, today. Work with us to turn market challenges into winning strategies—because when it comes to your future growth, there’s only forward.

You might also like: Buying Land in Vietnam in 2025: Navigating Land‑Use Rights Without Surprises