Generally, the terms ‘Red Book’ and ‘Pink Book’ are widely used in Vietnam. But what exactly are these documents, where do their names come from, and what are their differences?
Can foreigners own a Pink Book in Vietnam? And what conditions must they meet to own a house in Vietnam? Read our article below to find the answers.
Contents
No such things as a ‘Red book’ or ‘Pink book’ exist because no official legal documents define these concepts. People often rely on the color of the cover of these documents to refer to them as ‘Red book’ or ‘Pink book’.
The terms ‘Red Book’ and ‘Pink Book’ are both informal references to the ‘Certificate of Land Use Rights, Ownership of Houses and Other Assets Attached to Land’
The table below describes the difference between these two terms:
| Before 2009 | After 2009 | ||
| Commonly used words (unofficial name) | Red Book | Old Pink Book | New Pink Book |
| Official name | Certificate of land use right, house ownership, and other properties associated with the land | Certificate of land use rights and ownership of houses | Certificate of land use right, house ownership, and other properties associated with the land |
| Scope | Outside urban areas such as agricultural and forestry land | Urban areas such as cities, towns, and municipalities | National wide |
| Issuing authority | The Ministry of Natural Resources and Environment | The Ministry of Construction | The Ministry of Natural Resources and Environment |
| Color of cover | Red | Pink | Pink |
| Legal validity | Equal | Equal | Equal |
Overall, nowadays, the “Red Book” and “Pink Book” have been unified into a single type of certificate. Its name is “Certificate of Land Use Rights, Ownership of Houses and Other Assets Attached to Land” (this certificate also has a pink cover), which people refer to as the “Pink Book”.
Pink Book serves as a legal document for the state to confirm the lawful land use rights, ownership of houses, and other assets attached to the land of property owners (according to the Land Law, 2013). In other words, the “Pink Book” signifies full proprietorship.
Yes. According to Vietnam Housing Law 2014, foreigners can own a ‘Pink book’ for condominiums and individual residential houses (villas, adjacent houses, independent houses) within commercial housing construction investment projects. However, Vietnamese Law does not allow foreigners named on the Certificate of Land Use Rights, the Certificate of Ownership of Residential Houses, and Assets Attached to Land.
In Vietnam, foreigners can be listed on the ‘Pink Book’ for 50 years. According to Article 20 of the Housing Law 2023 (effective January 1, 2025), they can extend their homeownership rights once, with an extension of up to 50 years.
Although the Vietnamese state is still refining the specific process for the extension, it is very actively working on developing comprehensive legislation to ensure a clear and straightforward procedure.
Foreign individuals must meet the following conditions to purchase and own housing in Vietnam:
– For condominiums, foreigners are only allowed to purchase up to 30% of the total condominium units in a condominium project.
– For villas & detached houses, foreigners are only permitted to own up to 10% of the total villas or detached houses in an investment project, or not more than 250 villas & houses within an administrative ward.
Besides ‘Pink Book’, Investors have two popular and efficient options for property ownership when it comes to condominiums and villas: Sale and Purchase Agreement (SPA) and Long-term Lease Agreement (LTL). These alternatives provide flexibility and convenience, making the investment process smoother and more accessible while awaiting the ‘Pink Book’.
Sale Purchase Agreement (SPA)
A sales and purchase agreement is a legally binding contract that obliges the buyer to purchase and the seller to sell a product or service. In real estate, the SPA signifies the acknowledgment of the buyer’s apartment ownership rights by the real estate project developer, with a duration of 50 years and the possibility of extension. Foreigners can sell, and transfer SPA to both foreigners and Vietnamese citizens.
Currently, the real estate developer will assist foreign-owned apartments with SPA to apply for the issuance of the Pink Book in order based on the date of completion of the apartment.
Long Team Leasing (LTL)
For foreigners who wish to own properties (typically condominiums) in Vietnam but do not meet the requirements to sign a SPA contract, the Long Term Lease Agreement, or LTL for short, serves as a type of real estate purchase contract.
The LTL contracts usually have a duration of 50 years and grant the right to use the condominium for the lease period under the conditions and limitations specified in the lease agreement.
Foreigners can transfer and sell their Long Term Lease Agreements (LTA) to both foreigners and Vietnamese citizens. In case of transfer or sale to a foreigner, the recipient will receive the remaining lease time (LTA), while a Vietnamese citizen will receive the SPA.
