[Q&A - #016] Foreign Investment in Vietnam's Real Estate: Company Setup Guide

Vietnam's real estate market has been experiencing significant growth, attracting interest from foreign investors looking to tap into this dynamic sector. However, navigating the regulatory landscape for establishing a real estate company in Vietnam can be complex, especially for foreign entities. This blog post aims to address some of the most frequently asked questions about setting up a foreign-invested real estate company in Vietnam. Whether you're considering expanding your existing real estate business or starting a new venture, this guide will provide valuable insights into the possibilities and requirements for foreign investors in Vietnam's real estate market.

[Q&A] #016 - Foreign Investment in Vietnam's Real Estate: Company Setup Guide

Q1: Can foreign investors open a real estate company in Vietnam?

A1: Yes, foreign investors can establish a company in Vietnam for real estate-related services such as brokerage, counseling, and management. However, direct real estate business (selling, renting) may have different regulations.

Q2: Can I open a representative office or branch of my foreign real estate company in Vietnam?

A2: No, representative offices and branches are not allowed to operate or engage in real estate activities in Vietnam. You must establish a new company.

Q3: What services can a foreign-invested real estate company offer in Vietnam?

A3: Foreign-invested companies can offer services like real estate brokerage, counseling, management, and operating real estate trading platforms.

Q4: Are there any specific requirements for operating a real estate brokerage in Vietnam?

A4: Yes, to operate a real estate brokerage, you need at least one staff member with a brokerage license. It's recommended to start with real estate counseling and management services initially.

Q5: Can I use my existing brand name for the company in Vietnam?

A5: Yes, you can use your existing brand name. For example, if your company is called "ABC Real Estate", you could name your Vietnam entity "ABC Real Estate Vietnam".

Q6: Who can be the investor in the Vietnam company - an individual or a foreign company?

A6: Both options are possible. Either you as an individual or your existing foreign company can be the investor in the Vietnam company, depending on your preferred funding structure.

Q7: Are there any recent changes in real estate laws that might affect company registration?

A7: Yes, a new real estate law took effect in August 2024. Due to significant amendments, there might be some initial challenges or questions from government authorities during the registration process.

Q8: Is it advisable to seek local legal assistance when setting up a real estate company in Vietnam?

A8: Yes, given the specific nature of real estate regulations and recent legal changes, it's highly advisable to work with local legal experts to ensure compliance and navigate any potential challenges.

By carefully considering the options available, understanding the specific requirements, and leveraging local expertise, foreign investors can position themselves to successfully navigate Vietnam's real estate sector. As the market continues to develop, those who enter with a clear understanding of the regulatory framework and a strategic approach will be best equipped to capitalize on the opportunities that Vietnam's growing real estate industry offers.

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