Foreign Investors’ Concerns When Investing in Assets Without Speaking Vietnamese

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>>> 5 common real estate disputes foreigners face when investing in Nha Trang

In Vietnam, language barriers in asset investment are not merely an inconvenience; they can become serious legal risks

When You Do Not Understand the Contract, You Are Signing in the “Blind Zone”

Most real estate transactions in Vietnam involve:

• Contracts written entirely in Vietnamese

• Specialized legal terminology

• Legal expressions that differ significantly from international practice

Many foreigners admit that they:

• Sign contracts based on verbal explanations

• Rely on unofficial translations

• Assume the content is “probably similar to my home country”

The issue is that a single clause you do not understand can determine your entire ownership rights in the future.

In the event of a dispute, authorities recognize only the Vietnamese version of the contract - not how it was verbally explained to you.

Google Translate Is Not a Legal Tool

A common mistake is using Google Translate or translation software to “quickly understand” a contract. This may be acceptable for daily communication, but it is completely inadequate for legal matters because:

• Legal terminology does not translate literally

• A single word can carry very different legal consequences

• Legal language is binding, not descriptive

Misunderstanding just one phrase related to:

• Ownership duration

• Payment obligations

• Transfer rights

can result in a situation where you pay in full but do not obtain full rights.

The Biggest Fear: “I Don’t Know Whether I’m at a Disadvantage”

What worries many foreign investors most is not knowing the risks clearly, but not knowing where the risks are.

When you do not understand Vietnamese, it is difficult to identify:

• Unusual or unfavorable clauses

• Rights that are not properly recorded

• Obligations that exceed normal practice

When disputes arise, you may discover that:

• What you assumed was “automatic” does not exist in the contract

• What you believed was “promised” has no legal validity

Why Are Foreigners Often at a Disadvantage in Disputes?

In practice, when real estate disputes occur in Vietnam, foreigners are often disadvantaged because they:

• Do not fully understand legal procedures

• Are unfamiliar with working with local authorities

• Have difficulty tracking Vietnamese-language documents and files

• Must rely entirely on third parties

Without appropriate legal representation, protecting your rights becomes slow, difficult, and costly.

Without legal representation, your rights may be lost

A Lawyer Is Not Just a Translator - But a Protector of Your Rights

Many foreigners believe they only need: “A good Vietnamese translator.”

In reality, what you need is:

• A lawyer who understands Vietnamese law and can explain it in a language you understand.

A lawyer’s role includes:

• Clearly explaining what you are buying, what rights you have, and what you do not have

• Reviewing contracts before signing

• Representing you in dealings with Vietnamese parties

• Identifying risks before any funds are transferred

A lawyer does not stand on the seller’s or broker’s side, but on the side of your lawful interests.

When Should Foreigners Consult a Lawyer?

You should consult a lawyer before, not after, in the following situations:

• Before paying a deposit

• Before signing any Vietnamese-language contract

• When you are unsure whether you can legally hold title to the property

• When making a large or long-term investment

An early legal consultation can save you years of trouble later.

Not Speaking Vietnamese Is Not a Fault - Ignoring Legal Safeguards Is a Risk

Vietnamese law allows foreigners to invest in and own certain types of real estate. However, those rights only have real value when you fully understand and comply with the regulations.

If you do not speak Vietnamese, you should not attempt to “guess” the law.

In real estate investment in Nha Trang, having a lawyer involved from the very beginning is not a luxury - it is the simplest way to:

• Invest with confidence

• Protect your assets

• Avoid unnecessary risks

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

Hotline for direct consultation by our Legal team: 1900 2929 01

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Website: https://luatsulh.com/

Main office address: 12A Nguyen Dinh Chieu Street, Tan Dinh Ward, Ho Chi Minh City (Formerly: Da Kao Ward, District 1)

Nha Trang Branch office address: 144 Hoang Hoa Tham Street, Nha Trang Ward, Khanh Hoa Province (Formerly Loc Tho Ward, Nha Trang City)

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