The biggest difference between industrial real estate in Vietnam and France comes down to one word: ownership. In Vietnam, French investors may only lease land for a fixed term under the Land Law 31/2024; in France, they can own it almost outright. Getting the nature of the right correct determines the project’s cost structure and risk.
Vietnam: lease only, never own
The Land Law 31/2024/QH15 (effective 1 August 2024) keeps the founding principle: all land belongs to the people, with the State as the representative owner. Foreign organisations cannot own land in Vietnam — only lease it, paying either once for the whole term or annually.
For industrial-park projects, the standard practice is subleasing from the park infrastructure developer. Maximum lease term is 50 years (up to 70 years for large, slow-payback projects). On expiry, extension may be considered if the user still needs the land and planning allows — but there is no automatic right to renew.
France: full ownership and long-lease instruments
In France, foreign investors may own real estate with almost no restriction (only farmland faces SAFER oversight). Ownership confers full disposal rights: mortgage, transfer, sublease.
Beyond ownership, France offers flexible long leases: the bail commercial (commercial lease under Article L.145 of the Commercial Code — the tenant enjoys a 9-year renewal right and eviction compensation) and the bail emphyteotique (18–99 years, tenant rights close to ownership, mortgageable). These are standard tools for industrial projects that prefer not to tie up capital buying land.
Costs and risks: the substance
- Entry cost: one-off land sublease payments in Vietnamese parks can reach tens of USD per m² per lease cycle; buying industrial land near Paris or Lyon costs multiples more — but sits on the balance sheet as an asset.
- Planning risk: in Vietnam, subleased land depends on the infrastructure developer’s own land legality (land payments completed? mortgaged?); in France, the risk sits in urban planning (PLU) and building permits.
- Tax: Vietnam — land rental and non-agricultural land-use tax; France — taxe fonciere (annual property tax on owners) plus transfer tax on purchase.
- Exit: in Vietnam, transferring a project tied to leased land faces strict conditions; in France, selling real estate is an ordinary civil transaction.
Checklist for French investors subleasing in Vietnamese parks
- Verify the infrastructure developer’s legality: the State’s land allocation/lease decision, land financial obligations completed, mortgage status.
- Choose the payment form (one-off vs annual) — it affects investment incentives and whether the land-use right can be mortgaged.
- Check the remaining lease term and renewal conditions in the sublease contract.
- Assess the park’s technical infrastructure (power, water, wastewater) and logistics distance.
- Put every commitment on price, term and support into a notarised sublease contract — never rely on verbal promises.
Frequently asked questions
Can French investors buy land in Vietnam?
No. Under the Land Law 31/2024, foreign organisations cannot own land in Vietnam; they may only lease it for a fixed term (maximum 50 years, 70 for special projects) or sublease inside industrial parks.
What must be checked when subleasing in an industrial park?
The infrastructure developer’s legality: the State land allocation/lease decision, whether land financial obligations are complete, whether the land is mortgaged, and the remaining land-use term.
What is the French bail emphyteotique?
An 18–99 year long lease giving the tenant near-ownership rights (build, mortgage the lease right), commonly used for industrial projects that prefer not to buy land outright.
Is land-lease renewal automatic in Vietnam on expiry?
No. There is no automatic right; continued use may be considered for extension if consistent with planning and the law at that time.
Contact FLAT Law Firm
FLAT Law Firm advises French investors on Vietnamese industrial real estate: park legal due diligence, sublease negotiation, and structuring under the Land Law 31/2024. Contact us before placing a land reservation deposit.
This article has been quality-reviewed by the FLAW AI Legal Council