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According to current land law regulations and state agency guidelines, foreign-invested enterprises are only allowed to lease land from the state or within industrial zones for business operations in Vietnam; they are not permitted to lease land outside industrial zones from private individuals.
Instead, foreign-invested enterprises are typically only allowed to use land through certain specific forms such as:
This information has also been clarified by the Ministry of Natural Resources and Environment on the Government's Electronic Information Portal.
Currently, most foreign-invested enterprises in Vietnam choose to lease land or factory space in industrial parks because this model is in line with legal regulations and more convenient for project implementation.
In addition, some enterprises choose to sublease premises from suitable economic organizations instead of leasing directly from individuals. Depending on the business sector, investment location, and capital structure of the enterprise, the land use capacity will also vary according to current legal regulations.
A common problem is that many businesses only check the rental price and location without thoroughly reviewing the legal conditions related to land use rights. In reality, not all types of land or all landlords are suitable for foreign-invested enterprises. If contracts are signed too early without proper verification, businesses may spend a lot of time adjusting documents or changing investment plans later. This is especially important for manufacturing, logistics, or construction permit projects, where a thorough review of land legal status from the outset is crucial.
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