Vietnam is proposing a sweeping revision of its Law on Real Estate Business, discussed at an August 6 consultation workshop organised by the Vietnam Association of Realtors (VARS), VietNamNet Global reported. Hoang Thu Hang, Deputy Director General of the Department of Housing and Real Estate Market Management under the Ministry of Construction, said the draft — cut to 10 chapters and 61 articles from 83 in the 2023 law — is expected to go before the National Assembly for its first reading this month, with final approval targeted for October. Nguyen Van Khoi, Chairman of the Vietnam Real Estate Association, said the revision should align with Resolution No. 21-NQ/TW, moving the law beyond regulating business activity toward a more transparent market with less red tape and stronger post-transaction oversight.
Among the changes: every property would receive a unique digital identification code within a national housing and real estate database before it can be traded, remaining with the property for life. Approval authority for full or partial project transfers would shift from the Prime Minister to provincial governments, and the draft proposes cutting 9 of 31 business conditions, removing 5 of 12 administrative procedures, and reducing total processing time by 118 days. The existing payment safeguard is retained: developers cannot collect more than 95% of a property’s value before ownership certificates are issued, with the remaining 5% held in a guaranteed account.
The provision drawing the most developer pushback is a new requirement for banks to issue formal guarantees before developers can sell or lease-purchase off-plan housing — up from the current requirement of “approval in principle” only. Viglacera Corporation argued that mandatory guarantees would raise developers’ financing costs, which would ultimately be passed on to homebuyers through higher prices. Sun Group separately asked lawmakers to remove a requirement that authorities confirm buildings are eligible for sale before transactions proceed, and to make outstanding financial obligations transferable during project sales rather than a mandatory precondition. Phuc Hung Holdings called for clearer timelines on issuing the new property ID codes, warning that delays could disrupt transactions involving mixed completed and off-plan developments.
References
VietNamNet Global — Vietnam’s property law overhaul sparks fears of higher home prices
