Can FDI Companies Buy Subdivided Land Plots?

Contents

• 1. The short answer
• 2. Why the law restricts it
• 3. Lawful channels for FDI companies to access land
• 4. Housing vs subdivided land
• 5. "Workaround" traps to avoid
• 6. Frequently asked questions
• 7. Language versions
• 8. References

1. The short answer

As a rule: NO. Foreign-invested enterprises may not receive transfers of residential land use rights (subdivided plots) to speculate or flip like domestic individuals. Vietnamese land law tightly restricts eligible transferees where foreign-invested organizations are concerned.

This is one of FLAT's most frequent questions from Chinese investors — and where many discover their land-flipping plans are legally impossible.

2. Why the law restricts it

Land belongs to the entire people, uniformly managed by the State. Foreign-invested organizations may access land only tied to specific investment projects (production, business, services) — not to buy residential land for speculation or hoarding.

Policy logic: protect the land fund, curb speculation-driven price inflation, keep land serving real economic development.

3. Lawful channels for FDI companies to access land

1. Leasing in industrial parks: sublease from park infrastructure developers for factories and warehouses — the most common channel, fast procedures.
2. State land lease: under the Investment Registration Certificate, for production and business projects.
3. Real-estate business projects: land allocated/leased by the State for real-estate projects under investment approval — but this is project investment, requiring real-estate business conditions, capital and capacity — not retail plot purchases.
4. Leasing ready offices/factories: no land use rights needed, just a lease contract.

4. Housing vs subdivided land

Common confusion: "if my company can buy an apartment it can buy a land plot" — wrong. Two entirely different legal regimes.

5. "Workaround" traps to avoid

• ❌ Nominee Vietnamese individuals: "who is the real owner" disputes are hard to resolve; the nominee holds full paper title.
• ❌ 100% Vietnamese "shell" company: transactions designed to circumvent land restrictions may be deemed sham, invalidated and sanctioned.
• ❌ Capital contribution with land use rights then "taking back": complex structures, high legal risk if not properly designed.

Golden rule: every FDI land-access structure must be legally vetted in advance — vetting costs far less than dispute resolution.

6. Frequently asked questions

Can an FDI company buy subdivided land plots? As a rule, no. Foreign-invested organizations are restricted from receiving residential land use rights for speculation.

How can an FDI company invest in real estate then? Through real-estate business projects (allocated/leased land under investment approval), or by leasing industrial-park land for production facilities.

Can an FDI company buy residential housing? Yes — commercial housing within quotas under the 2023 Housing Law — but that is housing ownership, different from subdivided land.

What about buying through a 100% Vietnamese subsidiary? Not advisable — may be treated as a sham to circumvent the law, risking invalidation and sanctions.

How can FDI companies lease land in industrial parks? Sublease from park infrastructure developers or State land lease under the Investment Registration Certificate — the main lawful channel.

FDI company needing premises or projects in Vietnam? Contact FLAT Law Firm for lawful structuring advice.

7. Language versions

8. References

• 2024 Land Law (Law No. 31/2024/QH15) — effective 01/08/2024 (Vietnam).
• 2023 Housing Law (Law No. 27/2023/QH15) — effective 01/08/2024 (Vietnam).
• Investment Law 143/2025/QH15 — effective 01/03/2026 (Vietnam).
• Content cross-checked at the time of writing (28/9/2026).