Where Should Foreign Investors Start When Investing in Vietnam’s Real Estate?
Recently, a major real estate group from South Korea — Client B — reached out to DEDICA to explore opportunities in a residential project in Eastern Ho Chi Minh City. Having successfully developed multiple housing projects in Busan, they are now looking to Southeast Asia. They see Vietnam as an attractive destination due to its rapid urbanization, strong housing demand, and open policies for foreign investors.
However, upon reviewing the legal framework, Client B immediately encountered challenges: Does Vietnamese law allow foreign investors to purchase land? Can they directly develop a real estate project? What permits are required? Which form of investment is safe and optimal?
Forms of FDI in Vietnam’s Real Estate Sector
FDI in Vietnam's real estate sector is drawing global capital thanks to rapid urbanization, a youthful population, and open investment policies. Yet with these opportunities come challenges:
Establishing a Foreign-Invested Enterprise
This is the most common approach, especially for large-scale developments. Investors can set up an LLC or joint stock company with up to 100% foreign ownership, subject to strict criteria on land usage, project type (residential, resort, office, etc.), and location (coastal or security-sensitive areas may be restricted).Equity Contribution or Share Acquisition in Vietnamese Companies
A softer approach for many investors is to indirectly acquire equity in existing real estate enterprises in Vietnam—this is quicker and carries less risk.Business Cooperation Contracts (BCC)
For those unwilling or unable to establish a legal entity in Vietnam, a BCC allows cooperation with a local firm to jointly invest, develop, and operate a real estate project and share profits without forming a new company.
How to Invest in FDI Real Estate Safely and Efficiently?
Whatever the chosen form, meticulous preparation in legal, strategic, and investment structuring is vital. Several foreign investors have stumbled due to inadequate paperwork, partner due diligence, or misjudging legal barriers. So how can investors comply with laws, minimize risks, and maximize returns when investing in Vietnam? Here, DEDICA shares its real-world experience assisting FDI real estate projects from permitting to implementation and operation.
1. Legal due diligence is critical
Regardless of the investment form, legal compliance is the foundation of success. Small errors in investment licenses, corporate registration, or contract terms can lead to disputes or even project revocation. DEDICA conducts thorough due diligence — checking legal status, land ownership, planning documents, business licenses, and construction permits — early to mitigate risks, saving time and cost.
2. Optimize investment structures for cost and tax efficiency
Many foreign investors overlook tax planning and corporate structuring, resulting in excessive tax burdens or difficulty repatriating profits legally. We advise on intelligent investment structures: selecting the right corporate form, leveraging double-tax agreements, and structuring internal loan agreements to ensure smooth and lawful capital repatriation.
FDI in Vietnam’s Real Estate Remains a Promising Opportunity
Vietnam continues to attract FDI in diverse real estate segments—from luxury housing and resorts to offices and industrial parks. Turning potential into profit hinges on understanding and adhering to current regulations.
With a specialized team of lawyers in investment, real estate, and tax law, DEDICA has supported numerous international investors in successfully executing projects and maximizing long-term value.
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