Vietnam's Real Estate Market Regulations: New Laws Effective from August 1, 2024

The new regulations and a nationwide land survey are anticipated to transform Vietnam's property market and professionalize real estate brokerage.

Effective from August 1, new laws will come into force.

On July 23, 2024, the Vietnamese government announced the implementation of several new laws related to land, housing, and the real estate market, effective from August 1, 2024. These include the 2024 Land Law, the 2023 Real Estate Business Law, and the 2023 Housing Law.

The implementation of three laws has been accelerated to take effect simultaneously, including the 2024 Land Law, the 2023 Real Estate Business Law, and the 2023 Housing Law.

The government plans to soon implement several decrees to guide the implementation of housing and land-related laws, including:

• Decree 98/2024/ND-CP guiding the 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.

Consequences of the new law

According to Hoang Hai, the new regulations will provide better support to the real estate sector and professionalize brokerage activities and transactions. 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, and a list of provisions for publicizing information about real estate products entering the market is projected to increase transparency and security in real estate trading activities.

A nationwide land survey will be conducted starting August 1st

The government has initiated a nationwide land inventory starting August 1, 2024, to assess the current status of land management and use, track local land changes over the past five years, evaluate land regulation compliance, and propose measures to improve land use efficiency.

The land inventory aims to: evaluate the current state of land management and utilization; monitor local land changes over the past five years; assess compliance with land regulations by organizations and individuals; and suggest ways to enhance land use efficiency.

The data and information gathered from the inventory will be crucial for revamping mechanisms, policies, and measures to enhance 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.

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

Conclusion

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.