Land Rights in Vietnam – What They Are and How You Can Acquire Land
Vietnam’s land use rights can be complicated for first time business investors. In Vietnam, land is collectively owned by people and administered by the government on their behalf. Therefore, under such a system, property owners cannot have full and legal ownership of land. Their rights are limited to land use rights permitted within the law.
Once a foreign investor has decided on Vietnam as a location to establish operations, the next significant step is identifying where and how to obtain land for their business.
Land users typically receive a land use right certificate (LURC), which shows the land user’s rights on the property. There are different types of land usage rights which we discuss; however, it is important to note that under current law, foreigners can retain an LURC for 50 years, while locals can have one indefinitely.
The government can choose to grant a one-time extension of another 50 years or take the land back if the party has failed to use the land under the terms and conditions of the LURC.
While this system may seem inconvenient, other countries such as the UK also employ such a system without significantly constraining investors. In fact, with a proper understanding of current regulation, leasing land in Vietnam can provide all the resources for successful investment within the country.
Follow the link below for more on:
- Land use rights
- Four ways to lease land
- Steps required to lease land
- Selling land
This is an excerpt from an article appearing in Vietnam Briefing, a subsidiary of Dezan Shira & Associates. For the latest economic, regulatory and business news from Vietnam, visit vietnam-briefing.com.