Resolving Land Use Rights Disputes with Foreign Investors

Part 1: Why Are Land Disputes Involving Foreign Investors Particularly Sensitive?

In the context of deeper international integration, the number of foreign-invested enterprises in Vietnam is increasing across a wide range of sectors. However, real estate—especially land use rights—remains a highly sensitive area that is prone to disputes. There are several reasons why businesses and partners should pay close attention:

• Vietnam’s land law system is relatively strict and has recently been updated under the 2024 Land Law, which introduces expanded methods for foreign-invested enterprises to acquire land use rights. However, many binding conditions still apply.

• If the parties cannot resolve the dispute amicably, administrative or judicial procedures become mandatory. The jurisdictional boundaries between different government levels (commune, district, province, court) can be quite complex—especially in cases involving foreign elements.

• Moreover, disputes may arise under international investment law, where a foreign investor may sue the Vietnamese government or state agency under investment protection treaties. These cases tend to be highly complex and expensive, requiring significant time and resources.

This article will guide you through each essential step and highlight the critical points for effectively handling land use rights disputes with foreign investors in Vietnam.

Part 2: Step-by-Step Guide to Resolving Land Disputes with Foreign Investors in Vietnam

Step 1 – Amicable Settlement or Mediation at the Grassroots Level

Attempting a mutual settlement is always the first step and is encouraged before escalating the matter to governmental authorities.

If unsuccessful, the next step is mediation at the Commune People's Committee—where the disputed land is located. This is mandatory under Article 202 of the 2013 Land Law and remains in effect under the 2024 Land Law.

Mediation procedure at the commune level:

• Submit a written request for mediation.

• A mediation council is formed, including the commune chairperson or vice-chair, representatives of the Fatherland Front, land officers, etc.

• Mediation must be conducted within a maximum of 45 days.

If mediation is successful: the outcome is recorded, and the land status may be updated accordingly.

If mediation fails: the parties are guided to either submit the case to the district/provincial level or file a lawsuit in court.

Step 2 – File a Complaint at the District or Provincial Level

If mediation at the commune level fails—especially in cases involving foreign investors—the District or Provincial People’s Committee is authorized to resolve the dispute under updated regulations.

Procedure:

• Prepare the application file, including: the petition, minutes of commune-level mediation, working records, land map extracts, cadastral records, and proof of land use.

• The competent authority will verify the facts, propose a resolution, and then issue a decision either resolving the dispute or recognizing a successful mediation.

• If dissatisfied with the decision, a party may file a lawsuit at the court or lodge a complaint to the higher-level People's Committee within 30 days.

Step 3 – File a Lawsuit at the People's Court

If administrative procedures fail to resolve the issue, the disputing party may file a lawsuit at the People’s Court where the land is located. Under the Civil Procedure Code, the Provincial People’s Court has jurisdiction over land disputes involving foreign elements, especially when judicial assistance or overseas assets/parties are involved.

Key notes:

• The lawsuit file must include: a standardized petition, proof of land use rights, contracts, mediation records, ID documents of the plaintiff, etc.

• Foreign documents must be translated, notarized, and legalized (if required).

• The law has been updated: the previous 2-year statute of limitations no longer applies, meaning lawsuits can be filed at any time when legitimate rights are violated.

Step 4 – International Investment Arbitration (If Applicable)

If the dispute arises from investment contracts (e.g., PPP, BOT, BCC) or bilateral/multilateral investment treaties in which Vietnam is a member, the foreign investor may initiate proceedings under international arbitration or dispute resolution mechanisms.

This is typically the last resort when internal administrative and judicial methods in Vietnam fail to resolve the dispute. Such proceedings are often expensive, lengthy, and require deep legal expertise.

Conclusion

We hope this article has helped you understand the step-by-step process for resolving land use rights disputes with foreign investors in Vietnam—from amicable settlements and commune-level mediation to court litigation and international arbitration when necessary.

Contact DEDICA Law Firm for expert legal consultation!

📞 Hotline: (+84) 39 969 0012 (Available on WhatsApp, WeChat, and Zalo)

🏢 Head Office: 144 Vo Van Tan Street, Xuan Hoa Ward, Ho Chi Minh City (144 Vo Van Tan Street, Vo Thi Sau Ward, District 3, Ho Chi Minh City)

🕒 Business Hours: Monday – Friday (8:30 AM – 6:00 PM)

Reach out today for a free initial consultation with our team of professional lawyers!