Property

In regard to the draft revised Land Law, the Ministry of Natural Resources and Environment (MoNRE) has said that it will not tax those with many houses but on the use of the land. High tax rates will be imposed on speculators who buy land and projects but then do not invest, instead waiting for the market to increase to sell for profit.

Real estate posted the least effective business results in the second quarter of 2022 of eleven industries, with many listed companies seeing negative market capitalization growth. Total revenue in the second quarter by listed real estate companies was down 58.4 per cent year-on-year while net profits were down 51.3 per cent.

Minister of Natural Resources and Environment Tran Hong Ha said that Vietnam will have a land database by 2025, including a map of land prices. When measurements are completed, land plots will be shown on the cadastral map, associated with the daily collected land price.

Deputy Prime Minister Le Van Thanh has signed Directive No. 13/CT-TTg dated August 29, 2022 on a number of solutions to promote the safe and sustainable development of the real estate market. While requesting that real estate credit not be unreasonably tightened, the government also directed management agencies to strengthen supervision over lending.

Decree No. 35/2022/ND-CP stipulating the management of industrial parks and economic zones and issued on May 28, 2022, is an important policy directing the development of industrial park infrastructure in Vietnam. However, though it is considered a breakthrough measure and removes cumbersome administrative procedures, its implementation still has drawbacks that need to be dealt with.

Ho Chi Minh City has authorized districts to renovate old apartments built before 1975. Figures from the city’s Department of Construction show that it has 474 old apartment blocks of such vintage, but many lack investment for renovating or rebuilding. The city aims to complete renovations this year.