The Impact of New Laws on Real Estate Businesses

With the introduction of the Land Law 2024, Housing Law 2023, and Real Estate Business Law 2023, real estate companies in Vietnam are facing numerous challenges as well as new opportunities. In a market experiencing significant fluctuations, these new laws are expected to bring a fresh breeze, promoting sustainable development and increasing transparency.

People-Centric Reforms

During the seminar titled “New Drivers, Opportunities, and Challenges from the Land Law 2024 and Related Laws,” organized by Thương Gia Magazine, Dr. Nguyễn Văn Đính, Chairman of the Vietnam Real Estate Brokers Association, highly praised the reforms in the Land Law 2024. He pointed out that these new regulations truly place citizens at the center, maximizing protection for homebuyers.

One of the highlights of the Land Law 2024 is the requirement that resettlement areas must be completed before land recovery decisions are made. This regulation not only addresses the issue of vacant resettlement housing but also ensures the rights of those affected by land acquisition. Additionally, the process of issuing land use right certificates has become clearer and more transparent, reducing difficulties for homebuyers.

Expanding Opportunities for Social Housing

The Housing Law 2023 introduces many positive changes, expanding the scope of investment and eligibility for social housing. This will help increase the supply of social housing and assist low-income individuals in accessing affordable housing projects.

Notably, the law also includes additional incentives to encourage businesses to develop social housing projects, such as allocating land to provincial and city People’s Committees for social housing development. Companies are also allowed to choose land with built infrastructure within commercial housing projects or other areas, or to pay equivalent amounts in place of land allocation.

Enhancing Transparency in Real Estate Business

The Real Estate Business Law 2023 is expected to create a more transparent and healthy real estate business environment. New regulations require real estate brokers to have a practicing certificate, and all real estate transactions must be conducted through banks, helping to reduce risks for homebuyers.

Mr. Đào Trung Chính from the Ministry of Natural Resources and Environment cautioned businesses to pay attention to changes in land access methods, especially in auction and bidding activities. These changes may significantly impact how companies acquire and develop land.

Challenges and Requirements for Effective Law Implementation

Ms. Nguyễn Thùy Dương, Editor-in-Chief of Thương Gia Magazine, emphasized that for these new laws to be effectively implemented and have a positive impact, supporting regulations must be comprehensive, detailed, and of high quality. Decrees, circulars, and other legal documents need to avoid overlap and ensure feasibility and transparency during the implementation process.

Moreover, the enforcement of these laws must be accompanied by strict oversight and timely action against violations to ensure that the laws are applied correctly and benefit all market participants.

Sustainable Development Opportunities for the Real Estate Market

Experts believe that these three new laws will form a crucial legal foundation for the sustainable development of the Vietnamese real estate market. As these regulations come into effect, not only the real estate sector but also related industries such as banking, insurance, and construction materials will benefit.

However, to seize this opportunity, businesses need to quickly equip themselves with the necessary knowledge and information to prepare for the changes in the legal framework. At this time, the agility and adaptability of companies will determine their success in a volatile market.

With the introduction of new laws related to real estate, businesses and investors need to clearly recognize both the opportunities and challenges to gain a competitive edge in this new era. The legal improvements not only help protect public interests but also create favorable conditions for the overall development of Vietnam's real estate market.