In the past, due to legal restrictions, many overseas Vietnamese who wished to own land in Vietnam had to ask relatives to hold property on their behalf in transactions and legal ownership documents. However, this often led to disputes when the person acting as the nominal owner took possession of the property. As a result, many overseas Vietnamese lost both their money and the land they had paid for. This legal uncertainty significantly limited real estate transactions by overseas Vietnamese in Vietnam, despite their strong desire to own land.
Under the 2013 Land Law, Vietnamese residing abroad—whether or not they held Vietnamese nationality—could only acquire land use rights in specific ways, such as by purchasing, leasing, inheriting, or receiving as gifts houses attached to land use rights (i.e., they were not allowed to buy land separately without a house). They could also acquire land use rights within housing development projects. These restrictions severely limited the ability of overseas Vietnamese with Vietnamese nationality to buy, sell, and own land independently.
However, the 2024 Land Law introduces a clearer distinction by dividing overseas Vietnamese into two separate groups based on nationality:
- Overseas Vietnamese who are Vietnamese citizens; or
- People of Vietnamese origin residing overseas who do not have Vietnamese nationality.
Under the new law, overseas Vietnamese with Vietnamese nationality now enjoy the same land ownership rights as domestic Vietnamese citizens. In other words, starting from August 1, 2024, they can directly participate in real estate transactions in Vietnam without requiring an intermediary, eliminating previous legal uncertainties and restrictions. However, the right to buy land remains restricted for “people of Vietnamese origin residing overseas who do not have Vietnamese nationality”.
This amendment aligns with the definition of overseas Vietnamese in the 2008 Law on Vietnamese Nationality, which states:
- Overseas Vietnamese include Vietnamese citizens and people of Vietnamese origin who reside permanently abroad.
- People of Vietnamese origin residing overseas are those who previously had Vietnamese nationality and whose nationality was determined by the principle of bloodline at birth, as well as their children and grandchildren residing permanently abroad.
The 2024 Land Law provides a more favorable legal framework for overseas Vietnamese who are Vietnamese citizens to invest in and own real estate in Vietnam, enhancing clarity and legal security for property transactions.
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