Real estate businesses play a pivotal role in Vietnam’s private sector, often leading major development directions and driving economic growth. According to the Vietnam Association of Realtors, many companies, especially leading private enterprises, are facing mounting challenges as projects are forced to stop or slow down. The reasons range from legal entanglements and overlapping administrative procedures to sluggish approvals, delays in site clearance, and setbacks in issuing land use rights certificates.

Breakthroughs from Resolution No. 68

With Politburo Resolution No. 68-NQ/TW on private sector development issued recently, experts, including Dr. Luc, are optimistic that the practical mechanisms it outlines for assisting businesses and citizens will mark a turning point for Vietnam’s private sector. The Resolution is expected to reinvigorate confidence and provide new momentum, especially for private real estate developers, while paving the way for a healthier, more sustainable property market through better supply-side facilitation.

More specifically, Resolution No. 68 sets out a series of breakthrough directions and solutions aimed at repositioning the private sector as a key driver of the economy. It clearly affirms that private enterprises are “one of the most important engines” of national growth. Once capital flows are unlocked and a level playing field is ensured, real estate companies, which have long been constrained by regulatory bottlenecks, will be able to thrive, contributing to the sustainable growth of both the property sector and the broader economy.

Nearly four decades into the “Doi Moi” (Economic Renewal) process, Vietnam’s private sector has seen remarkable growth in both quantity and quality. Today, the country is home to more than 940,000 registered enterprises and over 5 million business households. Together, they contribute roughly 50 per cent of GDP and over 30 per cent of total State budget revenue, and employ around 82 per cent of the national workforce. This segment has been pivotal in driving innovation, boosting productivity, enhancing national competitiveness, reducing poverty, and improving living standards. A number of private enterprises have grown into major players with a strong regional and global presence.

Within this ecosystem, private real estate companies hold a uniquely influential position. They are integral to multiple development fronts, from urbanization and infrastructure to industrial parks, commercial centers, tourism hubs, and service clusters. By investing in new urban areas, industrial parks, and resort complexes, they have helped transform regions and restructure the socio-economic landscape. Their impact also ripples across more than 40 related sectors, including construction, building materials, banking, labor, and consumption.

The sector has not only generated millions of jobs but also made significant contributions to the national budget. In 2023, private real estate companies were the second-largest tax contributors, paying over VND37 trillion ($1.48 billion). Notably, in 2024, three of the top 10 multi-industry private corporations making the highest tax contributions had real estate as their core business. Taxes and fees from property transactions and projects remain critical revenue sources for many local governments. “Developing the real estate market is undeniably one of the key levers to stimulate economic growth,” said Mr. Tran Van Binh, Vice President and General Secretary of the Vietnam Association of Realtors (VARS). “However, the sector is currently facing multiple challenges that threaten both its sustainability and broader economic stability.”

According to Mr. Binh, the solutions laid out in Resolution No. 68 offer a comprehensive and transparent regulatory corridor, allowing private enterprises, including real estate businesses, to grow more vigorously and contribute meaningfully to the country’s modernization drive. These new policy directions are seen as a strong push to resolve longstanding legal barriers and rebuild market confidence, especially during this critical period of recovery and restructuring.

The Resolution outlines several specific and time-bound commitments.

First, by 2025, Vietnam must complete a review and eliminate unnecessary or overlapping business conditions that hinder private sector development. It targets at least a 30 per cent reduction in administrative processing times, compliance costs, and business conditions, with further reductions to follow in subsequent years.

Second, policies must be enacted to stabilize land prices, particularly for commercial and non-agricultural use, so as not to disrupt business planning. By 2025, a national land database is expected to be completed and connected to the national data center, facilitating e-transactions in land-related procedures, improving transparency, and speeding up processes such as land leasing and land use certification.

It also prioritizes the unblocking of stalled or delayed projects and the utilization of idle or disputed land, including public land and unused government buildings. At the same time, it encourages the diversification of capital sources for the private sector, including real estate. Notably, it calls for the promotion of green credit schemes, with State support on interest rates and incentives for financial institutions to offer favorable terms to developers pursuing eco-friendly, circular projects that comply with environmental, social, and governance (ESG) standards.

Mr. Binh believes that these policies directly address some of the most stubborn bottlenecks. If implemented efficiently and in sync with broader reforms, such as streamlining bureaucracy, they could trigger a regulatory revolution, speeding up project approvals and accelerating overall development. In particular, the establishment of a connected, digitized national land database is expected to be a game-changer. By enabling standardized, transparent, and real-time access to data on plots, zoning, transaction history, and legal status, the market will gain the tools needed for accurate asset valuation based on real-world data, unlocking long-stalled projects around the country.

In the short term, the transition towards a leaner administrative structure may cause some delays in application processing. However, in the medium and long terms, once the new system stabilizes, project approval procedures are expected to become shorter, more transparent, and more efficient. This is especially meaningful as the market urgently needs to “ease pressure” on supply, particularly for affordable housing projects and other developments prioritized by the Party and State. As supply grows more diversified and better segmented, the existing mismatch between supply and demand will gradually improve, allowing property prices to adjust to more reasonable levels.

At the same time, a stable and streamlined administrative system will help speed up permits, approvals, and site clearance procedures. This will significantly reduce administrative, financial, and opportunity costs for developers, enabling them to offer more affordable pricing that aligns with the financial capabilities of the majority of homebuyers. As a result, the market will likely see more vibrant activity, with speculative behavior, artificial scarcity, and price manipulation gradually phased out. This will help restore trust among both investors and the public. Consequently, the market’s overall appeal will be reinforced, encouraging capital to return and fueling economic growth while stimulating related production and business activities.

Strategic juncture

At the 2025 Conference of the Executive Committee, the Standing Committee, and Member Gathering on May 9, an annual event organized by VARS, experts, representatives of member enterprises, and leaders of local real estate associations all expressed excitement and high expectations for Resolution No. 68. This is not only a breakthrough policy orientation but also a crucial legal framework enabling the private sector in general, and the real estate industry in particular, to fully realize its role as a key driver of the national economy.

Architect Tran Ngoc Chinh, Chairman of the Vietnam Urban Planning and Development Association and former Deputy Minister of Construction, said it is a particularly significant Resolution, not only due to its comprehensive content but also its strategic stature in repositioning the role, status, and development momentum of the private sector in this new era. “In a developing economy like Vietnam, the private sector is not only essential for ensuring investment resources in urban development projects but also a vital force promoting innovation in the design and construction of real estate projects,” he said. “Resolution No. 68 presents an opportunity for the private sector to take the lead in resolving difficult problems such as affordable housing, social housing development, and building industrial parks with synchronized infrastructure, all meeting the demands of urban modernization and sustainable development.”

Beyond that, he continued, the Resolution brings a “new lease on life” by directly addressing the most pressing bottlenecks of the market, particularly land access, which has been a longstanding barrier preventing many projects from meeting expectations. “The issuance of Resolution No. 68, at a time when the real estate market is undergoing restructuring and recovery and seeking a new growth engine, is not merely a policy direction but a pivotal institutional turning point,” he noted.

From a business perspective, Mr. Pham Lam, CEO of DKRA, believes Resolution No. 68 not only removes institutional obstacles but also creates a solid legal corridor for real estate businesses to create long-term value and contribute positively to the recovery and growth of the broader economy as well as the real estate market. This marks a strategic juncture, laying the groundwork for a creative mindset while paving the way for real estate enterprises to enter a new development phase with proactivity, innovation, and maximum resource utilization. In particular, with a clearly defined policy framework from the central government, businesses will have more confidence to boldly restructure their operations and adjust their strategies in line with market trends and sustainable development requirements.

Mr. Nguyen Van Ke, Chairman of the Dak Lak Real Estate Association, said Resolution No. 68 is opening a new development path for private enterprises in general and the real estate sector in particular, as it is not only broad in reform potential but also deep in strategic vision. With its affirmation of the private sector’s central role in the national economy, he went on, the Resolution has created a solid policy launch pad for real estate businesses to reposition themselves, redefine their place within the national economic value chain, and gradually become a core growth driver. He expressed hope that a series of breakthrough mechanisms and policies aimed at removing longstanding market bottlenecks, from legal and investment procedures to access to capital and land, will soon be in place, creating a more sustainable and transparent development framework.