Introduction
The structure of land ownership in Vietnam is different from the structure in most countries. In Vietnam, land belongs collectively to the people. Private ownership of land is not allowed and the State / Government holds all ownership powers as the one managing it. However, the laws of Vietnam recognize ownership deriving from holding land use rights (the “LUR”), which are similar to having ownership rights.
The land use right certificate (the “LURC”) is similar to a deed in most countries. The LURC, unlike a deed, is not a certificate of ownership of land, but a certificate of ownership of the LUR.
While the 2013 Law on Land (the “LOL”) allows Vietnamese citizens and domestic companies to acquire (purchase) the LUR from others, foreign investors are not allowed to do so. Foreign investors in Vietnam can obtain LURs (i) by way of capital contribution in the form of the LUR value by the local partner to a joint venture company or (ii) by way of a land lease directly from certainly permitted lessors, including the State.
