Question: We are foreign investor and now is interested in purchasing land plots in your country and build real estate projects on them (hotels, apartments).
Or purchase real estate objects that are already available on the plots for the specified purpose and use them in business activities.
Before he proceed with full legal advice to his questions, could you please comment of the follwoing:
- Can a foreigner own land plots and real estate objects by right of ownership? Or if it is acceptable, for example, a structure in which the land is leased and the property is owned?
- Can a legal entity that is 100% owned by a foreigner own land plots and real estate objects?
- Are there any requirement for this legal entity to have one local Director and one foreign?
- Or can a foreigner act as the sole Director and what is required for it?
- Or should only local directors be appointed?
Answer: I am Lawyer of SB Law. I was entrusted to advise you regarding land issue in Vietnam. Please find our answers as follows:
1. Under Vietnam Law, private ownership of land is not recognized. We shall have Land Use Right instead of private ownership of land use right. Land Use Right can be granted to either of Vietnamese Citizens, Vietnamese Companies and Foreign Owned Companies.
2. A foreign owned company can lease a land lot for developing a real estate project in Vietnam, i.e. building up a hotel or a residential apartment building. Term of a land lease agreement with the Government bodies can last upto 50 years, renewable.
3. A foreigner can own the residential apartments in Vietnam and the term of the ownership shall be 50 years (renewable).
4. A company 100% owned by a foreigner can have Land Use Right and owns properties on the land lot.
5. Director of a company in Vietnam can be either a Vietnamese or a Foreigner. A foreigner can act as the sole Director of the Company in Vietnam. However, in such cases, he should reside (temporarily or permanently) in Vietnam.
If your Client is interested in obtaining Land Use Right in Vietnam for developing a project, SB Law Team can support you.
