Vietnam is an attractive destination for many foreigners to live, work and invest. However, one of the most concerned issues is the right to own real estate - especially land use rights. According to the law, foreigners have clear legal limitations when wanting to own real estate in Vietnam. The following article will specifically analyze why foreigners are not allowed to have their name on the Land Use Rights Certificate.

1. What is a foreigner according to Vietnamese law?

Pursuant to Article 3 of the 2008 Law on Vietnamese Nationality, foreigners are understood to be people who do not have Vietnamese nationality - including foreign citizens and stateless persons. Thus, any individual who has a nationality other than Vietnamese nationality, or no nationality, is considered a foreigner according to the provisions of law.

2. What is a land use right certificate?

According to Clause 21, Article 3 of the 2024 Land Law, the Certificate of land use rights, house ownership rights and other assets attached to land (commonly known as the Red Book) is a legal document issued by a competent State agency to a land user. This is a legal document confirming the right to use land, house ownership rights and other assets attached to land legally.

3. Who can have their name on the Land Use Right Certificate?

Pursuant to Article 4 of the 2023 Land Law, the subjects to whom the State allocates land, leases land, and recognizes land use rights include:

- Vietnamese citizens;

- Economic organizations established under Vietnamese law;

- Domestic households and individuals;

- Residential communities and religious establishments;

- Vietnamese people residing abroad (with conditions);

Foreign organizations and individuals are only allowed to lease land and are not allowed to allocate land for long-term stable use.

Thus, foreigners are not in the group of subjects granted Land Use Rights Certificates, which means they are not allowed to have their names on the Red Book.

4. What types of real estate can foreigners have their names on in Vietnam?

Although not allowed to have their names on the Land Use Rights Certificate, foreigners can still have their names on certain types of real estate according to the provisions of the Housing Law 2024:

- Foreigners are allowed to own houses in Vietnam (including only apartments, commercial houses in housing development projects).

- Conditions: Must enter the country legally, and ownership must be through a contract of sale, lease-purchase, donation, inheritance of houses from legal organizations/individuals.

Important note: Although allowed to own houses, foreigners are only allowed to use the land attached to the house in the form of a land lease for a term, and are not granted a Land Use Rights Certificate like Vietnamese citizens.

Currently, there is a situation where foreigners "ask" Vietnamese people to have their names on the Land Use Rights Certificate. This is an act that poses serious legal risks, can be considered fraud, fake transactions, and can easily lead to disputes and loss of actual ownership. The authorities can completely handle violations according to civil and criminal laws.

5. Conclusion

According to current legal regulations, foreigners are not allowed to have their names on the Land Use Rights Certificate in Vietnam, but they can still own commercial housing in legal housing development projects. Understanding the provisions of the Land Law 2023, Housing Law 2024, and Nationality Law 2008 is extremely important to ensure that investing and living in Vietnam is legal, safe and sustainable. The article is for informational reference only, for in-depth advice, please contact: info@barrso.com