New regulations on land management will significantly impact investment structures, methods for investors to acquire land, and financial aspects of real estate projects. Understanding these new regulations and closely monitoring how they will apply in reality will help real estate businesses better plan, manage and execute their projects. Opportunities for some “hybrid” enterprises The 2023 Real Estate Business Law and the 2024 Land Law have introduced important changes for foreign-invested enterprises (FIE). The 2014 Real Estate Business Law used a single term “foreign-invested enterprises” without providing a specific definition, making no distinction regarding the percentage of foreign ownership, and without any reference to investment law. When it came to land acquisition, the 2013 Land Law defined FIEs as “enterprises with 100% foreign investment, joint ventures, and Vietnamese enterprises where foreign investors hold shares through share acquisition and merger according to investment law.” This description included all entities with foreign involvement, from 100% foreign-owned enterprises to those resulting from various forms of cooperation between foreign and domestic investors (joint ventures, share purchases, mergers…), even with only 1% foreign ownership, all being seen as FIEs. According to the 2024 Land Law, these entities are split into “economic organizations” and “economic organizations with […]
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