Commercial Housing Policy: "Today It's Possible, Tomorrow It's Not," Such a Waste!

Currently, the commercial housing policy in Vietnam is facing a major paradox: the continuous changes in regulations and policies create a "today it's possible, tomorrow it's not" situation for enterprises and stakeholders involved in commercial housing projects. This issue not only causes difficulties for investors but also wastes land resources, time, and development opportunities.

The Continuous Changes in Land Policies

For a long time, the issue of land use rights transfer between economic organizations, businesses, and citizens has faced significant difficulties. Before 2015, according to the Land Law, economic organizations could transfer agricultural land use rights to implement non-agricultural projects that were in line with planning. However, the 2014 Housing Law stipulated that businesses could only carry out commercial housing projects on residential land, leading to the stagnation of many projects because the process of acquiring land in accordance with this requirement was very complex. A piece of land might have to be divided into several small plots, each belonging to different landowners, and obtaining 100% residential land was a huge challenge.

This policy has caused commercial housing projects to completely stall. Businesses and local governments have repeatedly proposed amendments to make land use more flexible, especially for non-residential land. Although the National Assembly has issued several resolutions, such as Resolution 18 in 2022, to allow businesses to change the land use purpose, it wasn't until early 2024, after the new Land Law was passed, that the old stance was restored, stating that businesses can only transfer residential land use rights to carry out commercial housing projects.

"Today It's Possible, Tomorrow It's Not" — The Consequences of Instability

The constant change in policies not only delays projects but also wastes resources. Businesses face the "today it's possible, tomorrow it's not" situation when carrying out projects, making it difficult for them to plan long-term strategies. The instability in land policies reduces predictability, leading to uncertain investment decisions that are easily canceled when policies change.

This is especially severe in the context of businesses needing to find land for commercial housing projects, particularly in large cities like Hanoi and Ho Chi Minh City, where the demand for housing is high. Delays and interruptions in the project process waste time, resources, and business development opportunities, while the real estate market still lacks supply.

Wasting Economic Development Opportunities

A more serious consequence of policy instability is the waste of economic development opportunities. The lack of a stable land policy causes social resources, which are crucial for economic development, to stagnate. Businesses cannot implement projects on time, causing the housing market to fail to meet demand and disrupting the development of related economic sectors.

This waste is not limited to businesses but also affects the macroeconomy. When policies are not coordinated and stable, it leads to a loss of confidence among investors, weakening the country's investment and competitive environment. As a result, domestic and foreign businesses are reluctant to engage in large projects due to concerns that policies will change or be delayed, causing social resources to be underutilized.

Infrastructure Investment and PPP Models: Similar Waste?

We also see a similar situation in infrastructure investment projects. The policies and investment mechanisms, particularly for BOT (Build-Operate-Transfer) and BT (Build-Transfer) projects, also experience the "today it's possible, tomorrow it's not" situation. These policy changes or suspensions cause projects to be halted or require changes in investment methods, wasting time and funds, while also creating difficulties for local governments and businesses involved. Delays or cancellations of infrastructure projects have a significant impact on economic development, reducing the quality of infrastructure connectivity and increasing social costs.

A Need for Stable, Long-Term Policies

To solve the issue of "today it's possible, tomorrow it's not," commercial housing policies and related issues need to be designed with a long-term and stable vision. Breakthrough changes are necessary to provide businesses with more opportunities to access land and carry out commercial housing projects without encountering regulatory obstacles, while ensuring transparency and fairness in the process.

Restoring and rebuilding policies in housing, infrastructure, and land sectors will not only solve current problems but also strengthen trust in the legal system and create a stable investment environment. If policies lack continuity and transparency, social development will be delayed, resources will be wasted, and opportunities will gradually disappear.

In a context where the country urgently needs to tap into all available resources for development, improving and stabilizing policies is a pressing issue. Stable policies will help businesses, investors, and citizens move forward confidently in the development process, thereby promoting sustainable economic development in the new era.