Overseas Vietnamese Investing in Industrial Zone Real Estate

Overseas Vietnamese investing in industrial zone real estate is becoming a prominent trend as Vietnam strongly attracts capital flows and promotes industrial development. Leveraging financial advantages and international experience, this investor group contributes to domestic industrial zone growth while unlocking numerous economic development opportunities. Complying with legal procedures helps protect rights and optimize sustainable profits. In the following article, Long Phan Consulting Company details the trends and forms of Overseas Vietnamese investing in industrial zone real estate.

Characteristics of industrial real estate in Vietnam

Industrial zone real estate includes land with built technical infrastructure, factories, and warehouses serving production. This property type features a land use term tied to the project duration, typically 50 years or a maximum of 70 years. Operations require synchronized electricity, water, wastewater treatment, and fire prevention systems, which is especially relevant for overseas Vietnamese investing in industrial zone real estate.

Current legal policies facilitate overseas Vietnamese investing in industrial zone real estate through long-term land lease mechanisms. Managing this property type requires a deep understanding of construction planning and environmental standards. This is a highly stable segment but requires large-scale and long-term capital resources.

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Trends in development and profit potential of this segment

Vietnam is receiving a strong wave of global supply chain relocation from developed countries. Demand for ready-built warehouses and factories is surging in key economic zones in both the North and South. Industrial infrastructure rental prices continue to grow steadily, ensuring stable cash flow for investors, including overseas Vietnamese investing in industrial zone real estate.

Opportunities for overseas Vietnamese investing in industrial zone real estate are becoming increasingly clear thanks to improved inter-regional transport connectivity. Free Trade Agreements (FTAs) are boosting production activities, creating strong demand for industrial land. The participation of multinational corporations further reinforces the profitability potential of this segment.

To enter the market, clients must clearly understand requirements related to legal entity status and execution capacity. Barriers regarding origin verification and financial documentation must be carefully prepared. The next section will clarify specific conditions for overseas Vietnamese investing in industrial zone real estate to participate legally.

Conditions for overseas Vietnamese to invest in industrial real estate

To participate in industrial zone investments in Vietnam, overseas Vietnamese investing in industrial zone real estate must meet specific legal conditions, primarily related to determining eligible subjects under applicable laws.

Eligible investors under Vietnamese law

According to Articles 43, 33, and 34 of the 2024 Land Law, the rights of Vietnamese people residing abroad and economic organizations with foreign investment capital in using land in industrial parks, industrial clusters, and high-tech zones are regulated as a key legal basis for overseas Vietnamese investing in industrial zone real estate:

People of Vietnamese origin residing abroad:

• Transfer of land use rights: Vietnamese citizens residing abroad have the right to transfer land use rights in industrial parks, industrial clusters, and high-tech zones. This can be done when they fully meet the conditions and procedures stipulated by Vietnamese law. This transfer allows Vietnamese citizens to participate in commercial transactions and improve the efficient use of land assets in key economic development areas.
• Subleasing land use rights: Vietnamese citizens residing abroad have the right to sublease land use rights or assets attached to the land in industrial parks, industrial clusters, or high-tech zones. This right allows them to utilize their land assets to generate a stable income from leasing the land or assets attached to the land to other partners, including domestic and foreign businesses.
• Long-term land lease rights: Vietnamese people residing abroad can lease land in industrial parks, industrial clusters, and high-tech zones. They can pay the rent in a lump sum for the entire lease period or annually. If they pay in a lump sum, they will have the right to use the land long-term, which they can transfer, sublease, or use for other business purposes. This is a significant right, enabling Vietnamese people to participate in large projects or make long-term investments in land in Vietnam.
• Mortgage rights for land-attached assets: Vietnamese citizens residing abroad have the right to mortgage land-attached assets at legally recognized credit institutions in Vietnam. This creates access to credit, making it easier for them to borrow capital for investment in projects or business expansion. This is especially important in industrial parks, clusters, and high-tech zones, where projects require large capital investments.
• Land use rights as capital contribution: People of Vietnamese origin can use their land use rights or assets attached to the land to contribute capital to domestic organizations, foreign-invested economic organizations, or other individuals. This right opens up opportunities for business cooperation, investment, or expansion of production scale, helping them participate more deeply in the Vietnamese economy.

Foreign-invested economic organizations:

• Land leasing and subleasing in industrial parks, industrial clusters, and high-tech zones: Foreign-invested economic organizations have the right to lease or sublease land in industrial parks, industrial clusters, and high-tech zones. This is an important right because these areas usually have existing infrastructure, facilitating investment in production, research, and technological development. This allows foreign-invested economic organizations to take advantage of the benefits of modern industrial infrastructure to develop their business operations.
• Mortgaging land-attached assets: Foreign-invested economic organizations have the right to mortgage land-attached assets at domestic and foreign credit institutions. This right facilitates access to loans at reasonable interest rates, supporting large investment projects and enhancing production capacity. This is especially important for industrial or high-tech projects that require large capital and the ability to mobilize financing from external sources.
• Transfer of land use rights and assets attached to land: Economic organizations with foreign investment capital have the right to transfer land use rights or assets attached to land to other organizations or individuals. This creates opportunities for these organizations to implement flexible business strategies, such as selling off unnecessary assets or restructuring projects to optimize financial efficiency.
• Contributing capital in the form of land use rights and assets attached to the land: Foreign-invested economic organizations have the right to contribute capital in the form of land use rights and assets attached to the land. This is a common method for these organizations to participate in joint investment projects, while simultaneously enhancing the financial strength of the projects they participate in. Contributing capital in the form of land and assets attached to the land helps increase liquidity and expand the network of business partners.
• Leasing of land-attached assets: Economic organizations can sublease land-attached assets in industrial parks, industrial clusters, and high-tech zones. This right allows them to utilize the assets they own without directly operating or managing the projects, thereby generating a stable income stream without having to participate in direct operational activities.

The rights of Vietnamese people residing abroad and foreign-invested economic organizations in using land in industrial parks, industrial clusters, and high-tech zones not only relate to land use rights but also include the right to transfer, mortgage, sublease assets, contribute capital, and other financial rights. These provisions form an important legal foundation for overseas Vietnamese investing in industrial zone real estate, particularly in relation to the registration of land use rights when participating in industrial real estate investment.

Requirements regarding financial capacity and investment experience

Criteria for evaluating financial capacity and ability to secure funding:

Based on Clause 1, Article 45 of Decree 23/2024/ND-CP, the criteria for evaluating financial capacity and capital arrangement ability also serve as important requirements for overseas Vietnamese investing in industrial zone real estate, and include the following:

1. Equity requirements are determined based on the total investment capital of the project:

• For projects stipulated in Clause 4, Article 1 of Decree 23/2024/ND-CP and involving land use, the minimum equity requirement is determined according to the provisions of land law. For other projects, the minimum equity requirement is determined according to the provisions of the law governing the relevant industry or sector. If the law governing the relevant industry or sector does not specify otherwise, the minimum equity requirement shall not be less than 15% of the total investment capital.
• In the case of a consortium, the equity capital of the consortium investors is equal to the sum of the equity capital of the consortium members. Each consortium member must meet the requirements corresponding to their equity contribution as agreed upon in the consortium agreement. The leading investor in the consortium must have a minimum equity contribution ratio of 30%, and each consortium member must have a minimum equity contribution ratio of 15%.

2. Requirements regarding the investor’s ability to raise loan capital; in the case of a consortium, the loan capital of the consortium investor shall equal the total loan capital of all members of the consortium;
3. Requirements regarding financial indicators (if any).

Criteria for evaluating investors’ project implementation experience:

Based on Clause 2, Article 45 of Decree 23/2024/ND-CP, the evaluation criteria for experience in implementing similar projects are based on factors such as investment scale, project completion time and level, and the proportion of equity capital contributed in similar projects. These standards are particularly important in assessing eligibility for overseas Vietnamese investing in industrial zone real estate, and include the following criteria:

• Experience in investing in and constructing similar projects (for projects with a construction component); experience in investing in similar projects (for projects without a construction component);
• Experience in operating and managing similar projects;
• Requirements regarding the experience of key personnel, and specialized equipment (if any);
• Investors are required to declare the history of disputes and complaints related to the project, both completed and ongoing; and the assessment by competent authorities of the investor’s operational process in the province or centrally-governed city where the project is implemented (if any).

Restrictions on foreign investors with Vietnamese elements

Despite the expanded rights in the 2024 Land Law, overseas Vietnamese investing in industrial zone real estate still face specific administrative and financial barriers:

• Determining Legal Status: Investors must possess valid documents proving Vietnamese origin (Clause 3, Article 4, 2024 Land Law). Lacking civil status records complicates land change registrations, often requiring time-consuming consular confirmations, especially for overseas Vietnamese investing in industrial zone real estate.
• Industrial Land Use Purpose: Access is strictly limited to approved planning. The 2023 Law on Real Estate Business restricts subdividing and selling plots in industrial zones. Investors, including overseas Vietnamese investing in industrial zone real estate, cannot arbitrarily change land use functions to commercial or residential purposes.
• Project Transfer Restrictions: Transferring industrial infrastructure projects demands strict compliance with disbursement progress, completion of financial obligations, and basic construction. State agencies conduct field inspections before approving transfers to prevent speculation, which directly affects overseas Vietnamese investing in industrial zone real estate.
• Equity Ratio Limits: Mobilizing foreign capital faces foreign exchange control barriers. Investors must prove clean, lawful funds; failing to meet equity commitments risks investment license revocation, a key concern for overseas Vietnamese investing in industrial zone real estate.
• Project Execution Security Deposit: Investors must deposit 1% to 3% of the investment capital at a Vietnamese bank to guarantee project execution, creating liquidity pressure for those including overseas Vietnamese investing in industrial zone real estate.
• Consular Legalization and Tax Obligations: All foreign documents must be consularly legalized with absolute precision. Furthermore, managing operations remotely and fulfilling tax obligations require a deep understanding of domestic laws to avoid penalties, particularly relevant to overseas Vietnamese investing in industrial zone real estate.

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Suitable forms of investment in industrial real estate

Choosing the right investment form is crucial to optimizing efficiency and limiting risks. Overseas Vietnamese should carefully consider the following methods:

Direct investment to establish businesses in Vietnam

Establish an economic organization to construct technical infrastructure. The enterprise holds the Land Use Right Certificate and directly manages the industrial zone. This provides total asset control.

Contributing capital and purchasing shares in industrial park infrastructure businesses

Buy shares in companies owning existing industrial infrastructure. This saves time on complex initial project licensing procedures, offering an indirect and safe investment solution.

Leasing and subleasing land in industrial zones

Sublease land with existing infrastructure to build warehouses or factories (detailed in Article 120, 2024 Land Law). This is highly suitable for medium-scale investments.

Investment cooperation through joint venture contracts

You sign a Business Cooperation Contract (BCC) with a domestic partner to jointly develop industrial land. The parties agree on profit sharing and specific responsibilities for project management and operation. This joint venture model helps overseas Vietnamese invest in industrial real estate and leverage local resources.

The project implementation process requires close coordination between the investor and state management agencies. From the survey stage to the operational phase, you must adhere to a strict administrative procedure.

The process of investing in industrial real estate for overseas Vietnamese

To effectively implement industrial real estate investment activities in Vietnam, overseas Vietnamese need to understand the step-by-step process, from preparing documents to project implementation and operation, in order to ensure compliance with the law and optimize investment efficiency.

Step 1: Market research and project selection

Clients conduct on-site assessments and review the 1/500 scale detailed planning of the target industrial park. Evaluating the connectivity of transportation infrastructure and the availability of local labor is crucial. This step helps overseas Vietnamese investors avoid unfeasible projects in industrial park real estate.

Step 2: Prepare legal and financial documents.

Applicants should prepare documents proving their investment eligibility and documents demonstrating their ability to raise capital. Documents from abroad must be legalized by the consular office and translated into Vietnamese by a certified translator. Complete documentation is essential for overseas Vietnamese to successfully invest in industrial real estate.

Step 3: Complete investment procedures and business registration

Applicants submit applications for Investment Registration Certificates to the local investment management agency. After obtaining the investment code, applicants proceed with the procedures to establish a legal entity to implement the project. This procedure establishes the business status for overseas Vietnamese investing in industrial real estate.

Step 4: Contract signing and project implementation

Customers sign land lease contracts and fulfill financial obligations regarding land use fees. Obtaining construction permits and implementing infrastructure construction must adhere to the registered investment schedule. This is a crucial stage when overseas Vietnamese invest in industrial real estate and disburse capital.

Step 5: Managing, operating, and exploiting the investment

Establish an operational system to sublease factory space or provide infrastructure services within the industrial park. Clients are required to submit periodic project progress reports to Vietnamese authorities. Effective management helps overseas Vietnamese investors in industrial park real estate optimize their cash flow.

Throughout the investment process, remote risk management presents a significant challenge for our clients. Policy fluctuations and geographical barriers necessitate professional hedging solutions.

Solutions to mitigate risks when investing remotely

Investing remotely in industrial real estate carries significant legal, operational, and cash flow control risks; therefore, overseas Vietnamese need appropriate solutions to mitigate risks and ensure sustainable investment returns.

Utilize professional legal advice services

Our experts assist in reviewing the legal aspects of project documents and assessing the capabilities of partners in Vietnam. Clients receive regular updates on changes to the Land Law and its implementing regulations. Legal advice serves as a shield for overseas Vietnamese investing in industrial real estate.

Delegation of project management and control

Clients authorize a reputable individual or organization in Vietnam to supervise infrastructure construction. The authorization contract must clearly define the limits of authority and reporting obligations regarding project implementation. This solution helps overseas Vietnamese investors in industrial real estate closely monitor their projects.

Conduct due diligence before investing

A thorough due diligence process helps identify any outstanding debts, disputes, or unfulfilled financial obligations. Clients need to be familiar with the history of the industrial land they intend to invest in to avoid prolonged complications. Careful verification is essential for overseas Vietnamese to invest safely in industrial real estate.

Develop a long-term financial strategy

Clients need contingency plans for fluctuations in interest rates and construction material costs. Diversifying investments helps reduce financial pressure and control cash flow risks more effectively. A clear strategy helps overseas Vietnamese invest in industrial real estate sustainably.

Industrial real estate investment consulting services at Long Phan Consulting Company

Experts at Long Phan Consulting Company execute the following tasks to support Overseas Vietnamese in industrial zone investments:

• Providing advice on legal requirements and procedures for overseas Vietnamese to invest in industrial real estate.
• Assess the project’s legal documentation, the infrastructure developer’s capabilities, and the current status of industrial land.
• Drafting land lease agreements, capital contribution agreements, and joint venture investment agreements.
• We represent you in the procedures for obtaining an Investment Registration Certificate for your project in Vietnam.
• Support for registering and establishing foreign-invested enterprises to operate technical infrastructure.
• We provide consulting services on optimal tax solutions and investment incentives in economic zones and export processing zones for overseas Vietnamese investing in industrial real estate.
• Participate in resolving issues arising during the process of overseas Vietnamese investing in industrial real estate.

Frequently Asked Questions about Overseas Vietnamese Investing in Industrial Real Estate

The following, Long Phan Consulting Company Here are some frequently asked questions related to overseas Vietnamese investing in industrial real estate. We invite interested clients to refer to them:

What is the ownership period for residential properties for foreign investors of Vietnamese origin?

According to Article 20 of the 2023 Housing Law, foreigners are entitled to own housing in Vietnam through forms such as buying, leasing, receiving as a gift, or inheriting commercial housing in permitted projects. However, the ownership period for foreigners cannot exceed 50 years from the date of issuance of the Certificate of Ownership. This period is clearly stated in the Certificate, serving as the basis for determining the legal rights and obligations of the owner.

Are you authorized to have a relative in Vietnam conduct the purchase transaction on your behalf?

Yes, you can create a power of attorney at a Vietnamese diplomatic mission abroad or a notary office in Vietnam to authorize a relative to represent you in signing and submitting documents as per Article 562 of the 2015 Civil Code.

What criteria must the building density of the concentrated digital technology zone meet?

According to Clause 3, Article 8 of Decree 354/2025/ND-CP, the building density of a concentrated digital technology zone must meet the following criteria:

• The maximum net building density for a building or production facility plot is 60% of the plot area.
• The ratio of green spaces, transportation, and technical areas must be at least 21% of the total area of ​​the concentrated digital technology zone.

What are the regulations regarding land use progress and handling of violations?

One of the mandatory conditions when investing in industrial land is that businesses must put the land into use according to the schedule committed in the land lease contract. This aims to ensure efficient land use and prevent the land from being left fallow or used for purposes other than intended.

If a business fails to put the land into use within the stipulated time (usually 24 months), the state has the right to reclaim the land in accordance with Article 93 of Decree 102/2024/ND-CP. Therefore, businesses need to develop a detailed plan and commit to adhering to the schedule to avoid losing their land use rights.

What are the regulations regarding the management and use of land in industrial zones and industrial clusters?

According to Clause 1, Article 202 of the 2024 Land Law, the management and use of land in industrial parks and clusters must conform to the land use plan approved by the competent state agency. This ensures that infrastructure development and business activities in industrial parks are implemented according to a long-term and stable plan, minimizing the risk of changes in the plan.

The State has the right to lease land for the construction of industrial park and industrial cluster infrastructure, and may also allocate or lease land to public service units in special cases, such as border areas or islands where private investors cannot be attracted.

What are the preferential policies for small and medium-sized foreign enterprises investing in industrial park real estate?

One of the key benefits of Article 202 of the 2024 Land Law is the provision for allocating land to small and medium-sized enterprises (SMEs) in industrial zones. This not only helps small-scale businesses access land resources at low cost but also creates favorable conditions for them to expand production and develop their businesses.

The government has policies to reduce land rent for these businesses, and the reduced amount will be deducted from the land rent that the investor has to pay. This is an important financial support mechanism that helps reduce the cost burden for small and medium-sized enterprises, creating conditions for them to develop sustainably in a competitive environment.

Conclusion

The ability for Overseas Vietnamese to invest in industrial zone real estate has been firmly affirmed through the open regulations of the 2024 Land Law. Expanding ownership rights and industrial infrastructure business opportunities strongly propels investment capital back to the homeland. If you require detailed consulting on execution methods, please contact Hotline 1900636389 for direct support from the expert team at Long Phan Consulting Company.