Brian Jeffrey
The Vietnamese Government has mandated an urgent evaluation and removal of inappropriate or contradictory regulations that escalate real estate expenses—particularly those concerning planning, parking, and fire safety—and has called for strict penalties against market speculation and price surges.
As per Notice No. 294 from the Government Office, which outlines decisions from a cabinet meeting regarding the real estate sector, officials are to quickly identify and clarify elements contributing to escalated property values, such as land prices, raw material expenses, and interest rates on loans. Various ministries and local authorities are assigned the task of formulating swift strategies to lower these cost factors, enhance housing accessibility, and boost supply.
The Government has highlighted the necessity of simplifying overlapping or redundant administrative processes. All complex paperwork requirements should be eliminated, with a goal to reduce processing times and compliance costs by at least 30%. Additionally, authorities should review and optimize procedures related to investment approvals, project valuations, and design assessments.
Moreover, the Government has advocated for the urgent repeal or modification of any technical standards or regulations that are inappropriate, inconsistent, or overly expensive—particularly those concerning urban planning, parking facilities, and fire safety measures.
Policies aimed at supporting genuine home purchasers, especially young individuals, need to be introduced to enhance access to affordable housing. The Government has issued warnings about stricter enforcement against entities or individuals who manipulate auctions to inflate land prices, which hinders the growth of the real estate market.
Land clearance regulations must be pragmatic, with projects offering varied segments to cater to diverse consumer demands. Reducing costs and increasing supply are vital for broadening housing options.
Harsh penalties for price manipulators
Regarding urban planning, the Government has instructed that priority be given to central areas for long-term production, business, and service developments. Residential projects should come with sufficient technical and social infrastructure. Actions like speculation, price inflation, and the spread of misleading information intended to manipulate the market for personal advantage will face stringent prosecution.
The Ministry of Construction has been tasked with reviewing current challenges within the Housing Law, Land Law, and Real Estate Business Law, suggesting amendments to alleviate unnecessary administrative burdens.
Efforts will be ramped up to finalize urban planning and establish land reserves, especially for social housing initiatives in urban and industrial sectors. The Government also directed a coordinated development strategy for newly emerging areas along expressways and major infrastructure projects.
Importantly, the Government has mandated the establishment of a “Real Estate and Land Use Rights Exchange Center” under state supervision.
This center is intended to function like a stock exchange, where real estate transactions and associated processes—including notarization, tax payments, and land registration—are managed electronically, ensuring transparency and curtailing tax evasion.
The State Bank of Vietnam has been instructed to expedite the disbursement of the VND 120 trillion (approximately USD 4.9 billion) preferential loan program for homebuyers. The bank is also tasked with exploring new medium-term credit options with stable interest rates for affordable commercial housing projects.
Furthermore, the Government insisted on taking stringent measures against those complicit in price manipulation, cautioning that such practices corrupt the market, destabilize real estate values, and adversely affect buyers.
The Vinh
