The Law on Foreign Investment of 1987 and the Law on Land of 1993 marked a significant turning point, officially recognizing the right to lease land from the State for investment projects. The next phase (with the Law on Land, 2003) led to continuous sound improvements in regulations on land leasing and capital contribution through land use rights. At the same time, the Law on Housing 2005 opened up the possibility for foreigners to purchase houses, although with many limitations. The most significant breakthrough came with the Law on Land 2013 and the Law on Housing 2014, when regulations on foreign homeownership were significantly relaxed, creating more favorable conditions for foreigners to live and work in Vietnam. The Law on Land 2024 continues to clarify related mechanisms, demonstrating consistency in Vietnam’s land policy and legislation regarding land use rights for foreigners – relaxation, but with characteristic limitations. This paper examines the evolution of land policy and legislation in Vietnam regarding land use rights for foreigners to promote sustainable socio-economic development. Beginning with the pre-Renovation (Đổi Mới) period, when regulations were restrictive and almost entirely barred foreign access to land, Vietnam has undergone a gradual transformation. The analysis reveals that this policy shift is a testament to the flexibility and adaptability of Vietnamese law, which significantly contributes to attracting foreign investment, stimulating the real estate market, and promoting international economic integration. However, the paper also highlights existing challenges and provides several recommendations to further enhance policy in the future.