Regulation of Vietnam’s Real Estate Market: New Laws in Effect from August 1, 2024

July 29, 2024 Posted by Vietnam Briefing Written by Vu Nguyen Hanh Reading Time: 3 minutes

New laws and decrees, along with the implementation of a directive to initiate a nationwide land inventory, are expected to shake up the regulation of Vietnam’s property market and professionalize real estate brokerage.

New laws to take effect from August 1

On July 23, 2024, Vietnam’s Presidential Office unveiled a presidential order to implement several laws relating to land, housing, and the real estate market.

Accordingly, Law No. 43/2024/QH15 amending certain articles of laws on land, housing, real estate business, and credit institutions will be effective from August 1, 2024.

The implementation of three laws has been expedited to take effect on the same day, including:

Law No. 31/2024/QH15 on land (hereinafter “2024 Land Law”);
Law No. 29/2023/QH15 on real estate business (hereinafter “2023 Real Estate Business Law”); and
Law No. 27/2023/QH15 on housing (hereinafter “2023 Housing Law”).

Additionally, various decrees directing the promulgation of these laws will soon be implemented, including:

Decree 98/2024/ND-CP guiding the Housing Law on renovation and reconstruction of apartment buildings;
Decree 88/2024/ND-CP on compensation, support, and resettlement when the State reclaims land; and
Decree 71/2024/ND-CP regulating land prices.

Implications of the new legislation

According to Hoang Hai, director of the Department of Housing and Real Estate Market Management at the Ministry of Construction, the new regulations will provide better support to the real estate sector and professionalize brokerage activities and transactions in this market.

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The government expects healthier and more transparent growth in the real estate market, along with an abundant inflow of capital investment, as streamlined and stringent regulations will create favorable conditions for project developments.

More detailed rules will also be in place to regulate the types and disclosure of real estate business contracts. Notably, a list of provisions on publicizing information about real estate products entering the market is projected to increase transparency and security in real estate trading activities.

Nationwide land inventory from August 1

Last July, Deputy Prime Minister Tran Hong Ha approved a nationwide land inventory starting August 1, 2024. The signed directive stipulates land inventory covering various land types as outlined in Articles 6 and 7 of the 2024 Land Law. It will also account for the management and use of land for golf courses, airports, erosion-prone areas, reclamation sites, and land from agricultural and forestry estates.

The land inventory intends to:

Assess the current status of land management and use;
Track local land changes over the past five years;
Evaluate land regulation compliance of organizations and individuals; and
Propose measures to improve land use efficiency.

Data and information collected from the inventory will be:

Fundamental for overhauling mechanisms, policies, and measures to improve state management of land;
Valuable for supporting economic and social activities, scientific research, and education; and
Essential for planning and establishing land use strategies for national defense, security, and other purposes for the 2021-2030 period, with an outlook through 2045.

Timeline for the land inventory

Competent authorities will collect data from August 1 to December 31, 2024;
Provincial-level governments will set deadlines for completing and submitting the land inventory results to finalize these data by June 30, 2025.
The Ministry of National Defense and the Ministry of Public Security must submit their results on two deadlines: one to provincial-level governments by March 31, 2025, and another to the Ministry of Natural Resources and Environment by June 30, 2025.
The final results of the 2024 land inventory are hoped to be published by September 30, 2025.

Conclusion

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A wide range of legislation will further enhance the regulations and management of Vietnam’s real estate market, aiming to ensure transparency and seamless customer experiences.

In this context, firms must carefully monitor and update themselves on the new land, housing, real estate business, investment, and credit regulations, especially regarding real estate brokerage activities. Companies must also adopt technology, such as online trading channels to better engage with customers.

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