Resolving Obstacles in the Process of Issuing Land Use Certificates in Ho Chi Minh City

Ho Chi Minh City is implementing a cross-departmental task force to address the complex obstacles in issuing Land Use Certificates and certificates of ownership for assets attached to land (commonly known as the "Red Book") to homebuyers of commercial residential projects. This task force plays a crucial role in assisting the People's Committee of Ho Chi Minh City in reviewing, categorizing, and proposing measures to optimize the process of issuing Red Books, thereby protecting the legitimate rights of homebuyers and ensuring transparency and fairness for all parties involved. This is a necessary initiative, reflecting the government's efforts to cope with ongoing challenges and restore confidence in the real estate market.

The task force is headed by Mr. Nguyen Toan Thang, Director of the Department of Natural Resources and Environment of Ho Chi Minh City, along with Mr. Huynh Thanh Khiet, Deputy Director of the Department of Construction, and 12 other members from various departments such as Planning and Architecture, Finance, Transport, Ho Chi Minh City Police, and the Tax Department. The plan will be executed in three strategic phases to ensure maximum efficiency in resolving existing obstacles.

• Phase 1: Review and collect information on commercial residential projects, while creating a list of projects with outstanding issues to be resolved. This phase requires the task force to engage with developers to understand the current legal status, project progress, and gather feedback from residents. This is a fundamental step in identifying issues and proposing appropriate solutions.

• Phase 2: Categorize and assess the specific obstacles of each project. These issues may include the legal status of new types of real estate such as officetels and shophouses, delays in submitting application documents, and supplementary financial requirements. After analysis and classification, the task force will submit proposed solutions to the People's Committee of Ho Chi Minh City for timely and precise guidance. This phase is expected to be completed by November 15, with the goal of ensuring each project has a clear and feasible solution.

• Phase 3: Implement the proposed solutions to eliminate obstacles in the process of issuing Red Books. This phase will start in November and continue until the end of December. It is the critical period in which the task force will closely cooperate with relevant departments and developers to remove legal and financial barriers, ensuring that residents can obtain their Red Books as soon as possible and have clear ownership of their properties.

In addition to resolving specific legal obstacles, the task force also focuses on developing applications and electronic information platforms to transparently provide information on the legal, financial, and progress status of commercial residential projects. This not only helps citizens easily access information but also increases transparency and provides more tools for citizens to effectively protect their rights. These applications also help mitigate issues arising from lack of information or inconsistencies.

According to a report from the Department of Natural Resources and Environment of Ho Chi Minh City, as of March this year, there are still approximately 59,000 apartments in the city that have not been issued Red Books. The primary reasons include developers delaying the submission of necessary legal documents, new types of real estate such as officetels and shophouses lacking a legal basis, and some apartments requiring additional financial contributions. Furthermore, some projects are under investigation or have been mortgaged to banks, which also contributes to the delay.

As of the end of June, Ho Chi Minh City had only issued Red Books for 22,147 residential units. Many apartments are still not eligible for Red Books due to the projects being mortgaged to banks or violations during construction. This has caused considerable difficulties and instability for homebuyers, many of whom have already moved in and lived in their apartments for years without having received legal certificates. This situation not only negatively impacts residents' rights but also damages developers' reputations and puts significant pressure on the real estate market.

The delay in the Red Book issuance process has severely undermined homebuyers' trust in the real estate management system and in developers. Citizens want assurance of their property ownership, but the complex and prolonged procedures have exposed them to financial and legal risks. Moreover, this situation reduces the transparency and attractiveness of Ho Chi Minh City's real estate market, especially in the face of increasing competition with other regional real estate markets.

Therefore, the establishment of this cross-departmental task force is a strategic and urgent move by the Ho Chi Minh City government. The task force aims not only to accelerate the process of issuing Red Books but also to address systemic issues related to real estate market management and legal procedures. Through comprehensive efforts from multiple sides, Ho Chi Minh City hopes to improve the current situation, enhance market transparency and efficiency, and safeguard the legal rights of all residents and investors. If these efforts are carried out consistently and transparently, they could play a significant role in restoring market confidence and laying a foundation for sustainable development in the future.