Recently, the government issued Decree 357/2025/NĐ-CP, laying the foundation for a “digital birth certificate” for millions of homes and land plots. Yet, beyond the seemingly sterile digits lies a silent, yet fierce battle: the push to unblock critical data pathways between ministries. The goal? To transform "immovable" assets into dynamic capital that fuels the economy.

Vietnam’s real estate market has long been likened to a blindfolded giant. It's one of the region’s most active asset markets, yet lacks a unified reference system. A single house might carry one address for postal services, a different entry in its land title, and a tax file tucked away in a separate drawer. This fragmentation has created "dark zones" ripe for speculative bubbles and drawn-out legal disputes. The real estate identification code is envisioned as a unifying thread, tying all these disjointed datasets together.

Decoding the ‘DNA’ of a property

This isn’t just a random sequence of characters. The identification code introduced in Decree 357 is a sophisticated information architecture - up to 40 characters combining geometric and legal structures. Think of it as each property now receiving its own genetic code.

This structure includes identifiers for land parcels (linked to the cadastral database under the Ministry of Agriculture and Environment), project codes (connected to construction legality), and specific character strings for individual units or floor spaces. Particularly notable is the six-character spatial identifier at the tail of each code. Vietnam is signaling a bold shift from traditional 2D models to 3D property management. In dense cities like Hanoi and Ho Chi Minh City, ownership no longer lies just on the surface but stacks vertically, making this shift crucial.

But bridging law and reality is no small feat. Experts have warned of complications due to the lack of synchronization among databases. Land data resides with the Ministry of Agriculture and Environment, housing data with the Ministry of Construction, tax records with the Ministry of Finance, and population data within the Ministry of Public Security’s VNeID system. If the new ID system - overseen by the Ministry of Construction - cannot perfectly sync with existing parcel data, we risk creating "immobile codes": entries with names but no utility for transactions or lookups.

When data learns to talk

To understand the journey ahead, look to global precedents. Some nations have turned data into economic lifelines, while others failed by isolating it in digital silos.

The United States follows a decentralized but practical approach. Without a federal Department of Construction, ID codes (APNs) emerged to support tax collection, with each county establishing its own system. This created severe data fragmentation. The solution? The private sector stepped in. The Real Estate Standards Organization (RESO) developed the Universal Parcel Identifier (UPI), wrapping local codes into a unified standard. Platforms like Zillow and banks now operate on this shared framework. America’s lesson: if governments don’t standardize early, the market pays the cost of translation.

Germany took a different path, favoring disciplined integration. Its ALKIS model merges spatial (mapping) and legal (attribute) data into a single, ISO-compliant system. There is no disconnect between maps and records. Everything adheres to the stringent GeoInfoDok protocol. This precision makes Germany’s identification system the backbone of urban planning and land-use governance.

Yet perhaps the most relatable lesson for Vietnam comes from India. Facing high population density and rural data gaps, India launched the SVAMITVA initiative. Drones were deployed to survey villages, granting millions of rural citizens digital property cards. The government created the Unified Lending Interface (ULI), linking land IDs directly with banks. A farmer who once spent months proving collateral can now secure loans in minutes - their “digital red book” is visible on the bank’s screen.

The takeaway is clear: identification codes must deliver real economic value to thrive.

Vietnam’s three-phase roadmap for the next decade

With Decree 357 opening the gate, Vietnam must now walk a three-step path:

First, from 2026–2027, is the “clean before you code” phase. The Philippines showed that rushing to digitize faulty records leads to a mountain of “digital garbage.” Vietnam faces a vast trove of deteriorating, inconsistent paper files. This first year should not be about quantity of codes issued, but about data purification. AI should be used to cross-verify and detect inconsistencies between land and housing data. Meanwhile, the Ministries of Construction and Agriculture must jointly issue a comprehensive national data standard - down to each data field - to avoid the siloed mistakes of Malaysia and Brazil.

Second, from 2027–2028, is the connection phase - turning IDs into capital flow. Citizens shouldn’t be burdened with memorizing 40-character codes unless they offer tangible benefits. Drawing from India’s playbook, Vietnam should link these IDs to banking systems. If a valid code speeds up loan approvals, people will voluntarily update their information. Economic incentives always outperform administrative mandates. Integration with VNeID could also automate property tax declarations - making digital governance feel useful, not bureaucratic.

Third, once the database is clean and scaled, the ID will evolve from a management tool to a macroeconomic lever. After a decade of unified registration, China could identify individual property ownership for effective property tax pilots and targeted market rescue plans. Vietnam can take a similar route. The identification code will form the foundation for future property tax laws - ensuring fairness and social equity. Furthermore, a national land-use exchange platform with integrated payments (akin to Australia’s PEXA) could eradicate deposit scams, dual pricing, and bring transparency to the market.

No longer 'immobile': A new mindset for growth

Decree 357/2025/NĐ-CP is not merely a technical policy - it’s a seismic shift in management thinking.

The road ahead will be tough. Local implementation, breaking down data silos, and entrenched habits like cash payments and handwritten contracts remain real barriers. But stagnation means continued opacity and idle capital buried in land instead of driving production.

To turn static data into fluid capital, we need more than just software. We need bold cross-ministerial coordination, patient cleanup of legacy files, and above all, a broad vision that turns abstract codes into national digital assets.

As seen in Singapore and South Korea, in the digital era, nations that master territorial data hold the key to prosperity. Vietnam’s real estate identification code is precisely that map - leading the country into its next era of growth.

Nguyen Phuoc Thang – Hoa Binh University