Speaking at a recent workshop about tourism real estate, Nguyen Dinh Tho, deputy director of the Institute of Strategy and Policy on Natural Resources and Environment, said that most of the legal issues that had long troubled the tourism real estate sector have largely been resolved.

"It can be said that up to this moment, there are no major legal obstacles related to tourism and resort real estate. What the market needs now is the restoration of investor confidence," Tho said.

He said after a period of rapid growth followed by a prolonged slowdown, many investors remain cautious about returning to the resort property market.

One of the issues of concern is the inconsistency between the land use term and the actual lifespan of the construction works. 

The majority of resort projects currently are developed on commercial and service land with a use term ranging from 50 to 70 years according to current land law regulations, while many structures can exist and be exploited for a much longer time.

“Investors ask a very practical question. They buy a resort apartment that can be used for a long time, but the land-use rights only last for a few decades. This directly affects investment decisions,” Tho said.

The expert stated that many countries currently apply two forms of ownership, including perpetual ownership and fixed-term ownership. Vietnam can study these models in the future to create more choices for the market, while aligning with modern land management trends.

However, the issue that causes concern for investors lies not just in the ownership term but also in the way the project is operated after sales.

One topic frequently mentioned at the seminar was the timeshare model, where buyers own or use resort real estate for a certain period each year, a type that grew strongly during the resort real estate boom.

According to Tho, several cases related to this model handled by authorities recently showed that the market needs a dedicated management mechanism instead of only dealing with individual violations.

In reality, many projects still collect management, operation, and maintenance fees at fairly high levels after selling products to customers. Cost determination and revenue or profit sharing are not really transparent.

“Many investors buy resort real estate but do not know what the actual operating costs are, whether revenue sharing is reasonable, or if the developer decides everything unilaterally,” Tho said.

He said resort real estate shares many similarities with the co-ownership and operation management model in apartment buildings. Therefore, mandatory audits, public financial reporting, and mechanisms for investors to participate in project oversight are needed.

“If it is joint ownership, it must be public and transparent. If the developer has full discretion, conflicts of interest and risks for secondary investors easily arise,” he emphasized. The lack of transparency in operation management and benefit sharing is one of the reasons why investor confidence has declined for years.

Customers trust

From a business perspective, Tran Diem My, vice chair of Five Star Group, said the market currently has three major drivers: the recovery of tourism, an increasingly complete legal framework, and investment capital seeking stable profit channels.

However, opportunities will not be for all businesses. According to My, the new growth cycle belongs only to businesses with high-quality products, transparent legal status, solid financial capacity, and real operational capability.

“The recent difficult period forced businesses to change. The market is no longer chasing hot growth but is moving toward real exploitation value, operational efficiency, and a sustainable resort ecosystem,” she commented.

Investor behavior has also changed significantly. If previously many people put down money based on attractive profit commitments, now they care more about a project’s legal status, the operating entity, customer sources, and the ability to generate real cash flow.

“Customers today don’t buy expectations, they buy certainty,” My emphasized.

She said the biggest problem for the market now is not sales but restoring trust. Trust does not come from advertising claims, but must be built by fully honoring post-sale commitments.

Hong Khanh