Property

A review of documents issued for the implementation of the 2013 Land Law reveal many inadequacies, obstacles, and overlaps that need to be addressed. The Ministry of Natural Resources and Environment has therefore developed a draft Decree amending and supplementing a number of Decrees regulating the implementation of the law.

Can Tho city’s housing development plan for the 2021-2025 period sets a target of having more than 5.3 million sq m of new housing by 2025, with a per capita housing area of 25.5 sq m. The Mekong Delta city will set aside 2,375 ha of land and invest nearly VND49 trillion ($2.14 billion) in the plan.

At the “Land Law - Housing Law - Law on Real Estate Business, for housing development and the real estate market” conference discussing amendments, analysts said that there are still many obstacles and inadequacies in these laws that will make it difficult for the real estate market to recover from Covid-19. Analysts suggested that there be solutions introduced to overcome this situation in the near future to develop Vietnam’s real estate market.

The impact of Covid-19, inflation, and the Russia-Ukraine conflict are among the key factors behind investor cash flows seeking shelter in real estate. Many localities have also begun to focus on developing industrial parks to attract FDI and at the same time invest in tourism development to quickly recover their real estate industries post-pandemic. Such expectations have led investors to focus on acquiring land funds.

The Bac Giang Provincial People’s Committee has approved planning for a series of new urban areas and residential areas, including many large-scale projects on as much as 125 ha. Under the approved planning, the northern province’s urbanization rate will stand at 55-60 per cent by 2030, with 29 urban centers, while 23 urban areas are planned, featuring services associated with industrial parks, amusement parks, resorts, and sports centers.

There have been many M&A deals in Vietnam’s real estate sector in the opening months of 2022, but foreign businesses continue to face barriers to involvement in regard to laws or differences in business practices.