Trusts and Foreign Nationals in Vietnam: What the Law Actually Allows

The short answer

Vietnam does not recognize trusts. As a civil law jurisdiction, Vietnamese law has no statutory concept of separating legal and beneficial ownership the way common law trust law does. Foreign nationals who are Vietnam tax residents, hold Vietnamese assets, or have Vietnamese family members cannot simply set up a domestic trust — they need alternative Vietnamese legal instruments for local assets, and, for assets held outside Vietnam, may still use an offshore trust in a jurisdiction that recognizes them, coordinated carefully with their Vietnam situation.

Why this catches foreign nationals off guard

Expatriates and foreign investors who come from — or hold assets in — the US, UK, Singapore, or other common law jurisdictions often assume a trust structure they set up at home will simply extend to cover Vietnamese assets or Vietnam-resident beneficiaries. It does not. Vietnamese courts generally will not enforce a foreign trust over Vietnam-situated real estate or local company shares, and Vietnamese civil law will instead apply its own contractual and inheritance rules to those assets regardless of what an offshore trust deed says.

What foreign nationals can use instead, for Vietnam-situated assets

• Vietnamese holding companies to hold local real estate, business interests, and investment assets under a single, governable structure with clear ownership documentation.

• Contractual asset management arrangements — including revocable arrangements structured through contracts and directed management agreements for investment purposes — that replicate some trust-like functions without relying on the trust concept.

• Wills drafted under Vietnamese law, coordinated with any foreign will, to ensure Vietnam-situated assets pass as intended and don’t default to Vietnamese intestacy rules.

• Land use right structuring, since foreign individuals face specific restrictions and conditions on real estate ownership in Vietnam — often requiring a Vietnamese entity structure or a leasehold approach for non-qualifying properties.

Where an offshore trust still has a role

For assets genuinely held outside Vietnam — offshore investment accounts, foreign real estate, shares in non-Vietnamese companies — an offshore trust in an established trust jurisdiction (with a strong tradition of enforcing trusts, an English common law foundation, and modern trust legislation) can still be a legitimate and effective tool. The key discipline is treating it as a separate structure that coordinates with, but does not attempt to control, Vietnam-situated assets.

Practical considerations for foreign nationals

1. Confirm your Vietnamese tax residency status first. Being a Vietnam tax resident (183-day rule or permanent accommodation test) affects how offshore trust distributions and income may be taxed under Vietnamese law.

2. Don’t assume symmetry between your home country’s estate tax rules and Vietnam’s. Vietnam’s approach to inheritance and asset transfer taxation differs meaningfully from common law estate tax regimes.

3. Review real estate ownership eligibility carefully. Vietnam’s amended Land Law, effective from 2025, expanded property rights for overseas Vietnamese, but foreign nationals without Vietnamese origin remain subject to more limited, conditional ownership rules.

4. Coordinate — don’t duplicate — advisors. A foreign trust and estate lawyer and a Vietnam-licensed lawyer need to be working from the same overall plan, not producing two disconnected structures.

How W&A Consulting helps

We advise foreign nationals on structuring Vietnam-situated assets using the legal tools actually available under Vietnamese law, and coordinate with offshore trust and estate counsel where clients hold assets abroad. Our team combines qualified legal practice with tax and accounting expertise to build coherent, cross-border wealth structures.

Holding Vietnam-connected assets and unsure what structure actually works here? Contact W&A Consulting for a confidential review.

FAQ

Can a foreigner set up a trust in Vietnam?

No — Vietnam does not recognize trusts under its civil law system; alternative structures like holding companies and contracts are used instead.

Will a foreign trust cover my Vietnamese real estate or company shares? 

Generally no — Vietnamese courts do not typically enforce foreign trusts over Vietnam-situated assets, which remain governed by Vietnamese property and company law.

Can foreign nationals own real estate in Vietnam? 

Yes, subject to conditions and restrictions — the amended Land Law (effective 2025) improved rights for overseas Vietnamese specifically, but foreign nationals without Vietnamese origin face more limited ownership terms.