The property industry in Ho Chi Minh City, and in fact the country in general, faces several problems that need urgent solutions, especially with regard to legal provisions.

The recent proposal from the Ministry of Construction to limit new investment in high-end residential property, including villas and high-rise apartments, 

The slowdown in 2019 and the arrival of the COVID-19 pandemic in the opening months of 2020 saw Vietnam’s property market hit “double trouble”, but experts have said the possibility of a quick recovery remains.

Successful property transactions accounted for 14 percent of the total existing units in the first quarter of 2020, marking a decrease of 60 percent from the same period last year and also the lowest in the past four years, according to a report.

The COVID-19 epidemic has affected the Vietnamese economy, including the construction sector.

Officials of the Mekong Delta city of Can Tho had a working session with World Bank (WB) representatives on March 2 to discuss a water supply project for the region.

 While there are few, if any, signs of the real estate bubble bursting in 2020, the Ministry of Construction said that land prices could increase in some areas.

Real estate remained the second biggest magnet for FDI in 2019, following processing – manufacturing, as it attracted $3.88 billion FDI, equivalent to 10.2 percent of the total registered.

The Ministry of Construction has requested its department in cities and provinces urge enterprises in the real estate sector to report suspicious transactions and cash transactions worth VND300 million and above.

The Ministry of Construction has told the local construction departments to force property traders and exchanges to report cash transactions of VND300 million or more. 

The Ministry of Construction plans to start releasing quarterly reports on the domestic real estate market to increase transparency, Minister of Construction Pham Hong Ha said at a recent ministry meeting.

As conflicts between high-rise apartment developers and their residents increase, some developers are struggling to improve their professionalism in building management.

The People’s Procuracy of Vinh Phuc said on June 18 that it had indicted three inspectors from the Ministry of Construction, Nguyen Thi Kim Anh, Dang Hai Anh and Nguyen Thuy Linh, for allegedly taking bribes.

Two inspectors of the Ministry of Construction confessed to the police of Vinh Phuc Province that they asked for bribe worth VND250 million while on duty in the province to approve the declared values of some projects.

 VietNamNet Bridge – A decision to approve illegal buildings and unapproved extra floors if their owners pay a fine has been surrounded with controversy since being announced recently.

 VietNamNet Bridge – A draft circular has been issued early this year by the Ministry of Construction to provide guidance on management, saving and efficient use of energy in buildings.

The Ministry of Construction and the State Bank both have loosened the requirements on the borrowers of the VND30 trillion package in an effort to speed up the disbursement. However, the power is in the hands of commercial banks.

 VietNamNet Bridge – The Ministry of Construction’s idea of allowing foreigners to buy houses in Vietnam may not help warm up the frozen real estate market, because foreigners may not intend to buy houses once they are too expensive.

The Ministry of Construction has proposed the government to allow all the foreigners, who have the visas to stay in Vietnam for 3 months or more, to buy houses in Vietnam. No limitation in the number of houses on the subjects would be set.