Legal Reforms Only Partially Unlock Property Market
Vietnam’s real estate remains constrained despite new legal and financial frameworks. Experts call for bold reforms, streamlined procedures, and housing price rebalancing.
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Legal Reforms: A Partial Unlock for Real Estate
Vietnam’s real estate market has seen attempts at revival through special legal and financial frameworks. However, experts agree these policies have only partially resolved deeper structural issues.
At a forum hosted by Hanoi Television titled “Special Mechanisms and Capital Flows for Real Estate” on April 9, Dr. Nguyễn Văn Đính, Chairman of the Vietnam Association of Realtors, emphasized that recent government resolutions—such as Resolutions 170 and 171—have brought hope to the market. These mechanisms aim to remove legal bottlenecks, facilitate land use approvals, and encourage investment.
Yet, Đính stressed the efforts remain uneven. While a portion of legal roadblocks has been removed, unresolved legal hurdles continue to paralyze over 1,100 projects nationwide. These projects have tied up nearly $3.5 billion in capital, stalling growth across industries such as construction materials, consumer goods, and home appliances.
Real Estate's Triple Threat: Price, Capital, Inventory
Professor Trần Ngọc Thơ from the University of Economics in Ho Chi Minh City described the real estate sector as suffering from a “triple disease”: high housing prices (blood pressure), tight credit flow (blood sugar), and excessive inventory (blood fat).
He warned that house prices have climbed far beyond ordinary income levels, threatening liquidity. Capital flow is overly reliant on bank credit. When this tap tightens, the entire sector risks a freeze. And bloated inventory continues to accrue, quietly adding to the real estate debt burden in banking systems—potentially leading to financial “stroke” scenarios.
Market Needs Structural and Policy-Level Shifts
To cure real estate’s “chronic illness,” Professor Hoàng Văn Cường, a member of the National Assembly’s Finance and Budget Committee, called for bolder and broader policy tools. He urged the government to “step outside its comfort zone” and implement more aggressive reforms to fast-track investment and untangle bureaucratic red tape.
“Policy mechanisms must be breakthrough—not cautious—if we’re serious about restoring confidence in the market,” Cường said.
Experts also argue that while unlocking capital is important, it’s equally vital to improve the quality of capital. Funds need to target realistic property values and affordable segments that reflect the purchasing power of most Vietnamese citizens.
Vương Duy Dũng, Deputy Director of the Housing and Real Estate Market Management Department under the Ministry of Construction, shared that the government is reviewing new regulations to better support affordable housing—not just for low-income groups, but for all practical homebuyers.
Focus on Housing for the Majority
According to Dũng, the state is finalizing policies to accelerate the formation of a national housing development fund. This will support the government’s goal of building 1 million social housing units by easing funding access and cutting red tape for developers.
Administrative procedures for real estate investment are also being restructured. The aim is to improve transparency, reduce delays, and attract both domestic and foreign investors to underdeveloped but high-potential housing segments.
The need to rebalance the market is urgent. Affordable housing must become a priority. Without it, the real estate market will continue to drift further from the majority’s reach.
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