Vietnam Set to Revolutionize Property Market with New Laws Starting August 2024

Hanoi, Vietnam — A sweeping set of legislative reforms aimed at transforming the real estate sector in Vietnam is set to take effect starting August 1, 2024. These changes, involving new laws on land, housing, and property dealings, are expected to enhance regulation, encouraging transparency and advancing professional practices within the industry.

On July 23, the Presidential Office of Vietnam authorized the enactment of multiple laws that prescribe more stringent governance in real estate transactions and the management of credit institutions. Law No. 43/2024/QH15, in particular, is critical among these, amending existing articles to bring them up to contemporary standards.

These amendments come at a crucial time, as the real estate market in Vietnam is poised for significant growth, driven by increased foreign investment and a booming domestic market. Officials believe that the new regulations will foster a more robust environment for investors and developers by streamlining processes and ensuring greater accountability in transactions.

Hoang Hai, a director at the Ministry of Construction’s Department of Housing and Real Estate Market Management, stated that these legal adjustments would better support the sector. Among the benefits anticipated are improved transparency in transactions and a more professional environment for real estate brokers.

Complementing the new laws is a directive for a comprehensive nationwide land inventory due to commence simultaneously on August 1, 2024. Deputy Prime Minister Tran Hong Ha approved this initiative, which will include efforts to account for and audit land use for various purposes including golf courses, airports, and agricultural endeavors.

The goals of the inventory are multifaceted. Authorities intend to assess the current state of land utilization, track modifications over the last five years, evaluate compliance with land regulations by organizations and individuals, and develop more effective land-use strategies.

Data accumulated from this inventory will be crucial for refining state policies and supporting various sectors including economic activities, scientific research, and education. It will also contribute to national strategies related to defense and security, establishing a groundwork for future policies leading up to 2045.

The timetable established for the inventory is tight, with data collection scheduled from the beginning of August until the end of December 2024. Different governmental levels are set to finalize and submit their findings by June 2025, with a comprehensive report expected to be published by the end of September 2025.

In reflection of these changes, the real estate community, specifically firms and brokers, must stay continually informed and adapt to the evolving regulatory landscape. The integration of technology, particularly online trading platforms, is encouraged to streamline interactions and engagements with clients.

Such a comprehensive overhaul of the legal and operational framework governing real estate in Vietnam not only promises to enhance domestic market conditions but also aims to attract further international investment by bolstering the confidence of potential investors regarding the stability and transparency of the Vietnamese market. As Vietnam continues on its path of economic modernization, these regulatory enhancements in the real estate sector are a significant stride towards achieving a more organized and fair market landscape.