Brian Jeffrey
On November 23, the National Assembly approved a resolution based on a thematic oversight report that examined the enforcement of real estate policies and social housing development from 2015 to 2023.
The report reveals the advancements and ongoing challenges in Vietnam’s real estate sector. The industry has expanded greatly and is now a significant contributor to socio-economic growth, yet it continues to face several hurdles.
A major concern is the slow pace of land valuation, which has hindered many property developments. These delays often arise from necessary legal assessments by governmental bodies, along with instances where local authorities have breached investment, land, and building regulations.
Moreover, the high costs of financing through loans and corporate bonds have driven up property prices. The availability of real estate options has seen a sharp fall in 2022-2023 compared to previous years, while property costs have increased at a rate that far exceeds income growth, worsening affordability issues for many.
A significant number of real estate projects are encountering legal hurdles or have ground to a halt, resulting in squandered land and resources, increased expenses for developers, and higher property prices. The tourism and hospitality real estate sectors are particularly at a standstill due to complex legal issues yet to be resolved.
The National Assembly has instructed the government to:
Complete and release comprehensive legal frameworks pertaining to the real estate industry.
Address the ongoing challenges from 2015 to 2023 while tackling new legal matters to foster a fair and transparent business atmosphere.
Enhance land finance management, focusing on land valuation and pricing adjustments to maintain reasonable costs for land-related activities and balance the interests of the government, land users, and investors.
Formulate strategies to eliminate legal and procedural barriers affecting delayed real estate projects.
The National Assembly stressed the necessity for new tax regulations, including:
Increased taxes on individuals owning extensive land plots or multiple housing units.
Punishments for those who do not effectively use land or leave it abandoned.
These modifications are intended to align tax policies with forthcoming changes in land regulations, enhance land use efficiency, and support income redistribution.
The General Department of Customs revealed that by November 15, Vietnam had exported more than 8 million tons of rice, generating $5.05 billion, marking a historical revenue peak.
In the first ten months of the year, the average export price for Vietnamese rice was $626 per ton, a 12% increase from the same timeframe last year. Vietnamese rice varieties are now fetching higher prices than those from top exporters like Thailand, India, and Pakistan.
