Advance efficient date of housing, realty regulations through 6 months, parliament recommended

Vietnam’s Construction Ministry has proposed that the National Assembly, the country’s parliament, advance the effective date of the 2023 Laws on Housing and Real Estate Business by six months to July 1 this year.

In a dossier submitted to the government and Ministry of Justice, the Ministry of Construction (MoC) emphasizes the critical importance of these two laws, highlighting their direct impact on both individuals and businesses, as well as their close relations with related legislation such as the Land Law.

Specifically, it notes that the Housing Law dated December 27, 2023 contains crucial regulations on housing development and management.

For example, on social housing, the law advocates decentralization in line with enhanced responsibility given to localities, stimulating social housing supply. It also specifies criteria and beneficiaries of social housing policies and offers incentives for developers. In addition, the law introduces two new policies aimed at developing accommodation for workers and members of the armed forces.

In terms of housing development, the law has revised and supplemented various regulations governing commercial housing, official housing, resettlement housing, and individual housing to facilitate developers. It also sets forth rules for renovating and rebuilding old apartments, thus encouraging investor engagement.

Similarly, the Real Estate Business Law dated November 28, 2023 introduces several innovative provisions. For instance, it mandates the disclosure of information on real estate and projects being brought to market; sets requirements for entities and individuals engaged in real estate transactions; and covers policies on the business of houses and existing/future projects.

Furthermore, it stipulates the transfer, lease and sublease of land use rights for specific real estate projects while regulating real estate business contracts, trading platforms and brokerages as well as the establishment and management of housing and real estate market databases.

Meanwhile, under a plan issued by Prime Minister Pham Minh Chinh in early April 2023, Vietnam targets the development of at least one million social housing units for low-income earners and industrial workers in 2021-2030. Despite this, social housing investments by several localities remain modest and some have yet to see the commencement of any social housing projects since 2021.

In this context, the MoC believes that early enforcement of the Laws on Housing and Real Estate Business will propel development and strict management of the real estate market. The early enactment of these laws will fine-tune institutions for healthy and sustainable development of land use rights and labor rights while ensuring stable, healthy, and transparent development of the real estate sector.

The ministry wants the two laws to come into effect concurrently with the Land Law 2024, which awaits approval from the parliament to take effect starting July 1.