The Law on Real Estate Business and the Law on Housing were ratified by the National Assembly last November and are expected to take effect on January 1, 2025.

However, regarding the draft resolution which has been released by the Ministry of Justice, the government is going to propose earlier enforcement. If its proposal is approved, the two laws would take effect on July 1, or six months sooner.

According to the Ministry of Construction (MOC), if the two laws become effective soon, this will help institutionalize the Party’s guideline and the State’s policies in developing and strictly controlling the real estate market. This will perfect the policies for healthy and sustainable development of the market.

The 2024 Land Law has been submitted to the government and the compilation agency has proposed that the government ask the National Assembly to allow the law to take effect from July 1, 2024.

If the NA approves the proposal, all three laws will become effective as from July 1, 2024.

Market supply

Vu Cuong Quyet, CEO of Dat Xanh Mien Bac, said he hopes the laws can get approval to take effect six months earlier than initially planned, because this will have positive influences on the property market, making it prosper sooner than expected.

“I believe that real estate firms also expect the laws to become effective soon. Many projects are still awaiting new regulations. The taxation has been postponed as it is awaiting the new laws to take effect,” Quyet said.

“Only when they take effect, there will be detailed guidance on how to calculate land taxes, which will immediately affect market supply,” he explained.

The new Law on Real Estate Business consists of strict regulations on conditions for projects to be on sale, which ensures safety for buyers when making transactions, thus allowing them to avoid risks and making the market more transparent.

In addition, the regulations on compensation for site clearance (land prices used to calculate compensations are close to market prices) will also help harmonize the benefits of both developers and people.

However, Quyet stressed that the law enforcement must be synchronized with the promulgation of decrees and legal documents that guide the implementation of the laws. If not, involved parties will feel puzzled in implementation. 

Meanwhile, many realtors expect the Law on Real Estate Business, Law on Housing and Land Law to take effect, so that they can pay land rents and continue to develop their projects which have been postponed because of the lack of regulations.

Nguyen Van Dinh, deputy chair of the Vietnam Real Estate Association, thinks that the new laws, if taking effect soon, will help remove obstacles, increase supply, and stabilize the market. 

Dinh said that the policies on encouraging the development of low-cost commercial housing and social housing projects will accelerate project execution.

The tighter control over investments, businesses and brokerage services will help the market be transparent, fair and healthy.

Haste makes waste

Nguyen Quoc Hiep, president of GP.Invest and chair of the Vietnam Construction Contractor Association, commented that the Law on Real Estate Business and the Law on Housing are not too complicated, so it is feasible to bring the laws into life soon.

Meanwhile, the Land Law covers many complicated issues, such as land evaluation and land purpose shifting. Therefore, he hopes that the decrees that guide implementation of the laws will be designed in a way to ensure benefits for the state, people and businesses.

For example, it is necessary to clarify the criteria on winning or losing bids instead of setting a general provision that the bidding must ensure "economic efficiency".

The government wants the three laws to take effect at the same time, July 1, 2024, but Hiep reminded that the Land Law mentions some complex issues, so the Ministry of Natural Resources and the Environment needs to be cautious when drafting the decree for the law.

Nguyen Le