However, Vietnamese law contains specific rules applicable to foreigners when purchasing vehicles and housing. To ensure that transactions are lawful, safe, and free from future legal risks, LH Legal provides the following article with key legal grounds and important notes before you decide to acquire assets in Vietnam.

Related articles:

- Can foreigners buy houses in Vietnam?

- What should you note when buying an apartment without a Pink Book (ownership certificate)?

Can Foreigners Buy a Vehicle in Vietnam?

Yes. Specifically, Clause 2, Article 10 of Circular No. 79/2024/TT-BCA provides:

“2. Vehicle owner being a foreigner

a) Where the vehicle owner is a member of a diplomatic mission, consular post, or representative office of an international organization in Vietnam: present a diplomatic ID card, official-duty ID card, consular ID card, honorary consular ID card, or (ordinary) ID card that is still valid, and submit a letter of introduction issued by the State Protocol Department (Ministry of Foreign Affairs) or the Department of Foreign Affairs;

b) Where the vehicle owner is a foreigner residing and working in Vietnam (except those specified in Point a of this Clause): present a permanent residence card or a temporary residence card (with remaining permitted stay in Vietnam of at least 06 months).”

Accordingly, Vietnamese law allows foreigners to buy and register vehicles in their own name if they satisfy lawful residency conditions. In particular, the foreign vehicle owner must hold a permanent residence card or a temporary residence card with at least 06 months of remaining validity to be eligible for vehicle registration in their name.

Conditions for Foreigners to Register Vehicle Ownership in Vietnam

Vehicle registration conditions:

Pursuant to Clause 2, Article 3 of Circular No. 79/2024/TT-BCA:

“Vehicle owners being organizations/individuals with head offices or places of residence (permanent or temporary registration) in a locality shall register the vehicle at the vehicle registration authority of that locality, except for cases stipulated in Clause 8 and Clause 9 of this Article.”

Vehicle registration dossier (Article 8, Circular 79/2024/TT-BCA):

“A first-time vehicle registration dossier includes:

1. Vehicle registration declaration form;

2. Documents of the vehicle owner;

3. Documents of the vehicle.”

Once the dossier is complete and residency conditions are met, the police authority will issue the vehicle registration certificate and license plate under the foreigner’s name. In short, if the correct procedure is followed, foreigners may legally own vehicles in Vietnam.

Vehicle Purchase Process

1. Select and purchase the vehicle: The foreign buyer chooses a new or used vehicle from a dealer or an individual seller. The parties sign a vehicle sale contract and complete payment. It is recommended that the contract be in writing with full signatures and be notarized.

2. Prepare the registration dossier: The buyer prepares documents including the registration declaration form, purchase contract/invoice, passport, temporary/permanent residence card with at least 6 months’ validity remaining, registration fee payment documents, vehicle ownership documents, and other required papers.

3. Submit the dossier and obtain license plate: The buyer submits the dossier to the Traffic Police Department in the locality where they reside. If valid, the officer guides payment of fees and issues the registration certificate and license plate in the foreign buyer’s name.

4. Insurance and lawful operation: After receiving the registration and plate, the buyer purchases mandatory civil liability insurance and completes inspection procedures (for cars) to lawfully operate the vehicle.

Can Foreigners Buy an Apartment in Vietnam?

Legal basis

Pursuant to Clause 1, Article 17 of the Housing Law 2023:

“1. Foreign organizations and individuals eligible to own housing in Vietnam include:

a) Foreign-invested economic organizations investing in housing construction projects in Vietnam;

b) Foreign-invested economic organizations, branches, representative offices of foreign enterprises, foreign investment funds, and branches of foreign banks operating in Vietnam (collectively, foreign organizations);

c) Foreign individuals permitted to enter Vietnam.

Foreign organizations and individuals specified in Clause 1 may own housing in Vietnam, including apartments and individual houses, through the following forms:

a) Organizations under Point a, Clause 1: through implementing housing construction investment projects in Vietnam;

b) Organizations and individuals under Points b and c, Clause 1: through purchasing, lease-purchasing commercial housing from project developers; receiving gifts; inheriting commercial housing in housing development projects not located in areas requiring national defense and security assurance (as stipulated in Article 16 of this Law);

c) Organizations and individuals under Points b and c, Clause 1: through purchasing or lease-purchasing housing from foreign organizations/individuals who already own housing under Point b of this Clause.”

Accordingly, any foreign individual with a valid passport and an entry stamp to Vietnam (and not enjoying diplomatic immunities) may be eligible to buy commercial housing in Vietnam.

 

Foreigners with a valid passport and an entry stamp to Vietnam may purchase commercial housing in Vietnam

Eligible Ownership Scope

Foreigners are generally allowed to own commercial housing (housing in commercial housing development projects) through:

• purchasing or lease-purchasing from the project developer; or

• receiving as a gift or inheritance from another lawful owner.

Foreigners are not included in the beneficiaries of social housing support policies under Article 76 of the Housing Law 2023.

In addition, Article 4 of the Land Law 2024 defines eligible land users in Vietnam; foreigners are not listed as individuals eligible to hold land use rights in their own name. Therefore:

• The law does not allow foreigners to buy social housing; and

• The law does not allow foreigners to buy housing attached to land use rights in the manner applicable to Vietnamese citizens (i.e., they cannot receive a land use right certificate as an individual foreigner).

Ownership Limits for Foreigners

Vietnamese law sets limits to ensure market balance and security. Under Article 19 of the Housing Law 2023:

• A foreign individual/organization may own no more than 30% of apartments in one condominium building.

• For individual houses (townhouses/villas) within a commercial project, in an area equivalent to one ward, foreigners may own no more than 250 houses.

• Where multiple buildings or multiple housing clusters exist in the same area, total foreign ownership must still not exceed the above caps.

Ownership Term

Pursuant to Point c, Clause 2, Article 20 of the Housing Law 2023:

“For foreign individuals, housing ownership is as agreed in the purchase, lease-purchase, gift, or inheritance transaction but shall not exceed 50 years from the date the Ownership Certificate is issued, and may be extended once for a period not exceeding 50 years if needed; the ownership term must be clearly stated in the Certificate.”

Unlike Vietnamese citizens (who can own housing long-term), foreign individuals only own housing for a fixed term, up to 50 years from the date the Pink Book (ownership certificate) is issued, with the possibility of one extension.

No Ownership of Standalone Land/Houses Outside Projects

A key restriction under Clause 2, Article 17 of the Housing Law 2023 is that foreigners may not purchase vacant land or standalone houses outside commercial housing projects. Foreigners may purchase:

• apartments; and

• individual houses within commercial housing development projects (e.g., urban areas developed by licensed investors).

This means foreigners generally cannot buy a typical ground house located in an existing residential neighborhood outside a commercial project and register ownership in their own name. Similarly, foreigners cannot receive transfer of land use rights (land plots), as the land law does not recognize foreigners as eligible land users for issuance of land use right certificates.

Procedures for Foreigners to Purchase an Apartment in Vietnam

Once a foreign buyer is eligible and selects a qualifying apartment, the process typically includes:

1. Verify that the project/apartment is eligible for sale to foreigners.

2. Sign the apartment sale contract and make payments. Note: the transfer contract must be notarized at a local notary office.

3. Submit dossier and apply for the Ownership Certificate (Pink Book):

   • If purchasing from a developer, the developer is responsible for applying for issuance of the Pink Book after handover.

   • If purchasing from an individual owner, the buyer prepares the dossier (notarized contract, identity documents, and apartment legal documents) and submits it to the Land Registration Office.

4. Complete tax obligations and receive the Ownership Certificate.

Common Risks and Mistakes Foreigners Face When Buying Vehicles or Real Estate in Vietnam

1) Buying units in projects not permitted for sale to foreigners

For example, local authorities may require developers of tourism real estate projects not to sell certain products (e.g., condotel units, resort villas) to foreigners; if a foreign buyer proceeds, they may be unable to register ownership or the contract may be declared invalid. Foreigners also cannot purchase housing in areas subject to national defense and security restrictions.

To reduce risk, the buyer should carefully verify the list of projects permitted for foreign ownership before signing.

2) Misunderstanding the 50-year ownership term as “permanent”

Many foreign buyers initially assume apartment ownership is permanent like Vietnamese citizens. In reality, the standard ownership term is up to 50 years, with a possible one-time extension. Failure to understand this may lead to disputes or difficulties as the term approaches expiration.

3) Failure to verify legal status before buying

For vehicles: risks include unclear origin, forged documents, vehicles under bank mortgage, or unpaid traffic penalties—resulting in inability to transfer registration, or even confiscation.
For real estate: if the buyer does not verify project legality (planning, permits, land documents, tax obligations), there is a risk the Pink Book will not be issued.

4) Transactions through unqualified brokers or intermediaries

Some foreigners rely on friends or informal brokers. This can result in signing deposits/contracts with intermediaries who are not the true owner and lack lawful authorization, creating risks of losing deposits or unresolved disputes.

5) Using a nominee to hold title (“standing in name”)

Some foreigners ask another person to hold ownership on their behalf due to concerns about legal complexity. This carries serious risks:

• loss of assets if the nominee refuses to transfer back or misappropriates the property;

• prolonged disputes and litigation;

• potential invalidation if deemed a sham transaction violating land management and security regulations.

Having another person hold the title to real estate on your behalf may cause you to lose the property

LH Legal - Legal Support for Foreigners Buying Vehicles and Apartments in Vietnam

Foreigners purchasing movable or immovable assets in Vietnam may face unfamiliar legal requirements and risks if proceeding alone. With extensive experience advising foreigners and foreign investors, LH Legal supports international clients throughout the transaction process, including:

• Checking legal eligibility of the buyer and the intended asset;

• Advising on compliant asset types and qualifying projects for foreigners;

• Drafting and reviewing sale contracts, deposit agreements, and authorization documents;

• Assisting with notarization, vehicle registration, and applications for housing ownership certificates;

• Advising and representing clients before competent state authorities and assisting with dispute resolution.

LH Legal is committed to supporting clients from the initial decision to purchase until all legal documentation is completed, ensuring transactions are:

• Safe – Transparent – Fully compliant with Vietnamese law;

• Confidential with respect to clients’ personal and asset information;

• Optimized to protect foreigners’ lawful rights and interests in Vietnam.

With LH Legal’s support, foreigners can confidently buy vehicles and apartments in Vietnam without legal obstacles—allowing them to focus on work, life, and long-term investment plans.

If you have any questions or need legal advice, please contact us via the following forms:

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