Investing In Vietnam - Land

The Vietnamese Constitution stipulates that land in Vietnam belongs to the people with the State acting as the representative owner and exerting its control over the

land in practice on the people’s behalf.

Although private ownership of land is technically not permitted, legal ownership can in essence be derived through the right to use land (i.e. the land use right (“LUR”)). The State may allocate or lease LURs to individuals, households and organizations to use land for a defined or undefined term.

Vietnam’s legal framework for the management and administration of LURs is composed of: various key laws and in particular the Land Law which was amended in 2014 for some important reforms relevant to Foreign Invested Enterprises (FIE’s); supplementing laws including the Civil Code which provide clarity on areas not specifically addressed in the key laws and including areas relating to foreign investment; and, auxiliary rules and regulation.

The ownership of LUR and other assets attached to land is evidenced by the Certificate of Land Use Right, Ownership of House and Other Assets Attached to Land (the “LURC”). This LURC sets out fundamental information on the land use, including the term and purpose of the land use, and the assets attached to the land (if any).

The State’s power over land construction activities is exercised by the following government bodies: at the national level, by the Ministry of Natural Resources and Environment, an administrative body of the State for land management, and the Ministry of Construction, an administrative body of the State for construction activities; and, at local level by the People’s Committees, supported by their administrative bodies such as the Department of Natural Resources and Environment and the Department of Construction.

Source RSM Vietnam

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