1. Market demand weak, businesses leave market

The Ministry of Construction (MOC) reported that there had been 324,378 successful transactions by the end of the third quarter, equal to 41.29 percent of that in 2022. The number of inventory products in the third quarter was 18,808 products, according to reports from 53 out of 63 cities/provinces, including 3,196 apartments, 6,554 separate housing products and 7,190 land plots.

Real estate had the highest number of dissolved businesses. In 2023, according to the General Statistics Office (GSO), 4,725 new real estate firms were established, while 1,286 businesses left the market.

The number of newly set up businesses in 2023 dropped by 45 percent compared with the previous year, while the number of dissolved businesses increased by 7.7 percent, or 107 businesses left the market a month. Many real estate firms have cut workforces by 50-75 percent.

Real estate firms are under pressure as a huge amount of corporate bonds are due in 2024, estimated at VND329.5 trillion.

2. Real estate firms’ leaders prosecuted

In March 2023, Le Huy Lan, former general director of Coma 18 (CIG), was arrested and prosecuted for ‘violating regulations on management, using state’s assets and causing losses and wastefulness at Coma 18’.

In June 2023, the investigation agency filed charges against Nguyen Do Lang, the founder of Apec Group ecosystem, and detained him for ‘manipulating the stock market’.

In August, the police arrested Vu Thi Thuy, chair and CEO of Nhat Nam Investment Trade Real Estate.

In October, the police prosecuted Dinh Truong Chinh, former CEO of Viet Han Trade, Advertisement, Construction and Real Estate for violations in managing and using the two ‘golden land plots’ in district 1. 

In November, Nguyen Khanh Hung, president of LDG Investment, was arrested for ‘swindling customers’.

3. Fire at mini apartment blocks

A deadly fire at the mini apartment building occurred in Thanh Xuan District in Hanoi in September 2023 and killed 56 people.

One day after the fire, the investigation agency arrested Nghiem Quang Minh, born in 1979, the owner of the mini apartment building for violations of the regulations on fire prevention and control.

The 9-storey apartment building with floor area of 200 sqm accommodated 45 households and 150 residents.

4. Granting ‘pink book’ to condotels, officetels

Under Decree 10/2023, which took effect on May 20, 2023, condotels, officetels, villas and other works serving accommodation and tourism on commercial and service land will be granted certificates if they can satisfy certain requirements.

5. 1 million social housing apartment approved

Under Decision 388 dated April 3, 2023, Vietnam will build at least 1 million social housing apartments for low-income earners and industrial zone (IZ) factories in 2021-2030.

It is expected that by 2030, the total number of apartments to be built would be 1,062,200, of which 428,000 apartments would be completed in 2021-2025 and 634,200 in 2025-2030.

6. VND120 trillion credit package disbursed

In April 2023, the State Bank of Vietnam (SBV) released a document on instructing commercial banks to implement the program on providing loans to fund social housing projects in accordance with Resolution 33. Under the program, borrowers can enjoy  preferential interest rates which are 1.5-2 percent lower than commercial interest rates.

According to MOC, localities and developers of social housing projects are focusing on disbursing the VND120 trillion credit package. To date, 23 cities/provinces have publicized a list of 54 projects eligible for borrowing capital under the program.

7. Land Law not yet ratified

Under the initial plan, the Land Law (amended) was expected to be ratified on November 29, the last day of the sixth National Assembly session.

However, ratification has been postponed as there are still many issues that need more time for study. This is an extremely important law which will have big impact on socio-economic life.

8. Law on Housing and Law on Real Estate Business approved

On November 27, the National Assembly approved the Housing Law (amended) with many new provisions. 

The new law doesn’t set limits on ownership duration, but stipulates time limits for using apartments, inheriting the current Law on Housing. The law tightens investment and development of mini apartments.

The Law on Real Estate Business was also approved by the National Assembly with stricter regulations in real estate business to protect buyers.

VietNamNet