Expat Legal Rights and Restrictions in Vietnam: What You Can and Cannot Do in 2026

Introduction: a separate legal framework for foreigners

Foreigners living in Vietnam are subject to a legal framework that differs in many respects from their home countries, and also from the rights of Vietnamese citizens. Alongside the general rules, Vietnamese law contains many provisions specific to foreigners on employment, investment and business, home ownership, entry and residence. Knowing these differences is the basis for a stable, compliant life in Vietnam in 2026.

The State keeps firm sovereignty over its legal system while encouraging foreign investment and foreign residents. The result is a multi-layered body of rules that can be hard to follow for newcomers. Many people only discover a specific restriction after entering into a transaction or activity that breaches it, and then face costly consequences.

The right to work and work permits

As a rule, a foreigner working in Vietnam needs a work permit, unless exempt or outside the permit regime (for example certain capital-contributing members or owners above the statutory threshold, intra-company transferees, or foreigners married to Vietnamese citizens and living in Vietnam — in which case a confirmation procedure still applies). Under Decree 219/2025/ND-CP (in force since 7 August 2025), work permits are issued by the provincial People's Committee (or the agency it designates) on the application of the employer in Vietnam.

It is more than a single form. The employer must justify its need to employ a foreigner in the position; since Decree 219/2025 this justification is integrated into the work permit application rather than being a separate prior procedure, and the authority decides within 10 working days of a complete file. The employee usually needs a health certificate, a criminal record certificate, degrees and evidence of experience; foreign public documents must carry an Apostille (where the issuing country applies the Apostille Convention with Vietnam, from 11 September 2026) or be consularly legalised, and be translated into Vietnamese. Under the Labour Code 2019, a work permit is valid for up to 2 years and may be extended only once, for up to 2 years.

Self-employment is restricted: a foreigner cannot simply register a household business as a Vietnamese citizen can, and usually operates through a foreign-invested enterprise or works for a Vietnamese employer. Freelancing, independent consulting or remote work for a foreign company while in Vietnam must be assessed case by case for work permit, visa and tax implications. Working without a required work permit can lead to administrative fines and deportation.

Home ownership and real estate

In Vietnam, land belongs to the entire people with the State as owner's representative; even Vietnamese citizens do not "own land" but hold land use rights. Foreign individuals cannot acquire residential land use rights as Vietnamese citizens do, but they can own housing in certain cases under the Law on Housing 2023: a foreign individual permitted to enter Vietnam may buy, lease-purchase, receive as a gift or inherit commercial housing (apartments or detached houses) in a housing development project, except in areas reserved for defence and security.

This ownership is capped: foreigners may own no more than 30% of the apartments in one apartment building and, for detached houses, no more than 250 houses in an area with a population equivalent to one ward-level administrative unit. Ownership lasts up to 50 years from the date the certificate is issued and may be extended once for up to 50 years. There is no rule limiting a foreigner to one unit. Before buying, check that the project is open to foreign buyers and that the foreign quota is not exhausted, because a purchase by an ineligible buyer may not be granted a certificate.

Long-term renting remains common. A lease should be in writing, stating the term, rent and termination conditions; check the landlord's documents proving ownership or the right to lease. A foreigner renting accommodation must have their temporary residence declared as required (usually by the landlord or accommodation provider).

Setting up a business and investing

Foreign investors may establish an economic organisation (a foreign-invested enterprise) in Vietnam under the Law on Investment No. 143/2025/QH15 — in force since 1 March 2026, replacing the Law on Investment 2020 — and the Law on Enterprises. There is no separate "Foreign Investment Law". The new law allows a foreign investor that meets market access conditions to set up a company before it has an investment project; an Investment Registration Certificate is still required to implement a project where the law so provides. There is a list of sectors with restricted market access for foreign investors: some are closed, others open subject to conditions (ownership caps, form of investment, scope of activity, a Vietnamese partner…). Review the sector and Vietnam's international commitments (WTO, FTAs) before planning an investment.

Procedures typically involve an Investment Registration Certificate (for projects that require one) and an Enterprise Registration Certificate; timing depends on the sector, the locality and the completeness of the file. The company must have a legal representative residing in Vietnam as required and a head office in Vietnam. After incorporation come recurring obligations: financial statements, tax filings, reports on implementation of the investment project and sector-specific reports.

Foreign-invested enterprises must comply with labour law like any other company: written employment contracts, social insurance contributions, occupational safety, and use of Vietnamese in documents submitted to authorities. Some sectors carry their own conditions. Breaches can lead to fines, suspension of operations or revocation of licences.

Residence and immigration

Foreigners must always hold valid residence papers (a visa, temporary residence card or permanent residence card) matching their purpose of entry, because residence status directly affects the right to work and to transact. Temporary residence cards are issued to specific categories under the Law on Entry, Exit, Transit and Residence of Foreigners — investors, work permit holders, accompanying family members, foreigners married to Vietnamese citizens and others — with terms that vary by category (up to 2 years for work permit holders and up to 10 years for investors with large capital contributions).

Overstaying is an administrative violation: under Decree 282/2025/ND-CP (in force since 15 December 2025) fines start at VND 500,000–2,000,000 for an overstay of under 16 days and rise with the length of the overstay; it can also lead to forced departure or deportation and affect future entries. Repeated "visa runs" are not a sustainable solution; immigration authorities may examine the real purpose of entry. The right approach is a visa or temporary residence card that matches your actual purpose (work, investment, family visit…).

Marriage to a Vietnamese citizen opens access to family-visit visas or temporary residence cards and certain other rights, but the marriage must be validly registered (registered in Vietnam, or a foreign marriage recorded in the Vietnamese civil status register). Inheritance, division of marital property and divorce with a foreign element are governed by family, civil and civil procedure law, taking into account where assets are located and the conflict-of-laws rules.

Political, religious and social activities

Foreigners in Vietnam must respect Vietnamese law, customs and traditions. Activities such as organising mass gatherings, unlicensed journalism or operating an unregistered non-governmental organisation may be sanctioned; serious violations can lead to deportation. Content posted on social media is also subject to the cybersecurity laws.

Foreigners have freedom of belief and religion and may worship at lawful religious establishments under the Law on Belief and Religion. Organising separate collective religious activities, proselytising or inviting foreign clergy requires meeting the conditions and completing the registration or approval procedures with the competent authority.

Finance, banking and tax

Foreigners can open payment accounts at banks in Vietnam with valid residence papers. Buying, transferring or carrying foreign currency abroad is subject to foreign exchange controls: you need documents proving the lawful source and purpose of the money (for example taxed salary or sale proceeds), and cash above the threshold must be declared to customs when entering or leaving.

For personal income tax: a person present in Vietnam for 183 days or more in a calendar year or in 12 consecutive months from the first day of arrival, or with a regular place of residence in Vietnam as defined by law, is a tax resident and is taxed on worldwide income; non-residents are taxed only on Vietnam-source income. Residents must file an annual finalisation (unless they authorise their employer or are exempt) and may credit tax paid abroad under double tax agreements. Breaches lead to penalties and late-payment interest; large-scale tax evasion can result in criminal liability.

Key points for compliance

The rules applying to foreigners in Vietnam change frequently, and enforcement can vary between localities. The most important areas to watch are work permits and residence papers, limits on home ownership, sector conditions for investment, and tax obligations. Having a lawyer on hand helps you keep up with sector-specific changes.

Periodic compliance reviews identify risks before they become problems. Many people get into trouble simply by relying on assumptions about their legal status without checking the current rules. Proactive legal advice is always cheaper than dealing with the consequences.

Quick Q&A

Can foreigners buy a home in Vietnam?

Yes, within limits. A foreign individual permitted to enter Vietnam may own commercial housing in a project (outside defence and security areas), up to 30% of the apartments in a building, for up to 50 years with one extension.

How long is a work permit valid?

Up to 2 years, extendable once for up to 2 years; the actual term also depends on the employment contract or secondment letter.

Which law governs foreign investment in Vietnam?

The Law on Investment No. 143/2025/QH15, in force since 1 March 2026, together with the Law on Enterprises. There is no separate Foreign Investment Law.

Who can get a temporary residence card?

Categories set by law, such as investors, work permit holders, accompanying family members and spouses or children of Vietnamese citizens; the card's term depends on the category.