Can an investor's lawful assets be nationalized?

This English version is translated from the Vietnamese original. In case of any discrepancy, the Vietnamese version prevails.

Will Legally Owned Assets of Investors Be Nationalized?

The answer is no. The Law on Investment 2025 (No. 143/2025/QH15) clearly stipulates the principle of ensuring property ownership rights for investors, applicable to both domestic investors and foreign investors operating in Vietnam. This is one of the most fundamental guarantees recognized by Vietnam's investment law.

"Legally owned assets of investors shall not be nationalized or confiscated by administrative measures."

— Clause 1, Article 9, Law on Investment 2025 (No. 143/2025/QH15)

How are investors protected when the State requisitions or commandeers property?

Although assets are not subject to nationalization or administrative confiscation, the law still recognizes the State's right to requisition or commandeer property in certain exceptional cases. However, in such cases, investors are protected through a mechanism of full financial compensation.

"When the State requisitions or commandeers assets for reasons of national defense, security, or national interest, emergency situations, or disaster prevention and control, investors shall be paid and compensated according to the provisions of the law on requisition and commandeering of assets and other relevant provisions of law."

— Clause 2, Article 9, Law on Investment 2025 (No. 143/2025/QH15)

Thus, there are only four categories of reasons for which the State may requisition or commandeer an investor's assets: (1) national defense and security; (2) national interest; (3) emergency situations; (4) disaster prevention and control. Outside of these reasons, legally owned assets are absolutely protected against all administrative measures.

Can foreign investors transfer assets abroad?

Yes, but only after fully discharging their financial obligations to the State of Vietnam. Article 11 of the Law on Investment 2025 (No. 143/2025/QH15) specifically lists the types of assets that foreign investors are permitted to transfer abroad:

• Investment capital and investment liquidation amounts;
• Income from investment and business activities;
• Money and other assets that are the legitimate property of the investor.

The prerequisite condition is that foreign investors must fulfill tax obligations and other financial obligations in accordance with Vietnamese law before transferring assets. The specific amounts and procedures involved should be verified in accordance with current regulations of the competent authority.

Do investors in the International Financial Center enjoy any special privileges?

Yes. For foreign investors operating in the International Financial Center in Vietnam, Resolution No. 222/2025/QH15 on the International Financial Center in Vietnam recognizes additional special rights in Article 11, including:

• Being permitted to own all or part of the shares or capital contribution of a Member;
• Being permitted to establish an economic organization within the Center without requiring an investment project and without being subject to the procedures for issuance of an Investment Registration Certificate;
• Not being required to undergo capital contribution registration procedures, share acquisition, or capital contribution acquisition under investment law when contributing capital to a Member — only notification of changes to business registration is required (except for the banking sector).

These rights supplement the general guarantees regarding property ownership rights as provided in the Law on Investment 2025.

What should investors note to ensure their assets are protected according to regulations?

To fully enjoy the mechanism for protecting property ownership rights, investors must ensure that assets have a legitimate source and are established in accordance with the law. The Law on Investment 2025 protects only legally owned assets — that is, assets that have been invested and with ownership established in accordance with proper legal procedures. Additionally, foreign investors must note that they should fulfill financial obligations (taxes, fees, and other required payments) before exercising the right to transfer assets abroad pursuant to Article 11 of the Law on Investment 2025 (No. 143/2025/QH15). Failure to comply with this condition may result in rejection of international fund transfer transactions by the competent authority.

What issues related to asset protection does A&D Law Firm assist investors with?

At A&D Law Firm, our team of lawyers specialized in corporate and investment legal advice can assist domestic and foreign investors with: reviewing the legality of investment assets, advising on mechanisms for ensuring property ownership rights, assisting with procedures for capital and asset transfer abroad, and representing clients in dispute resolution in cases where assets are violated or handled unlawfully. Contact A&D Law Firm for specific advice tailored to your individual investment situation.

This article is for reference purposes only and provides general legal information. It does not substitute for formal legal advice applicable to specific cases. Investment law may be amended and supplemented over time. Please contact a lawyer at A&D Law Firm for advice that is appropriate to your actual situation.