3 May 2019
Vietnam

Highlights of the Prime Minister’s Directive for the Real Estate Market

On 23 April 2019, the Prime Minister issued a directive under which the Prime Minister assigned specific tasks to the relevant authorities to foster the sustainable development of the real estate market.  The main tasks are as follows:

 

Subjects Main Required Actions
1. Condotels, resort villas and officetels By the end of September 2019:

  • the Ministry of Construction to issue regulations on construction standards and norms regarding condotels, resort villas and officetels;
  • the Ministry of Culture, Sports and Tourism to issue regulations on management and operation of condotels and resort villas; and
  • the Ministry of Natural Resources and Environment to (i) issue detailed guidelines on land use regime regarding condotels, resort villas and officetels and (ii) propose amendments to the Law on Land regarding the land use regime and issuance of land use right certificates regarding condotels, resort villas and officetels.
2. Financing in the real estate market
  • The Ministry of Finance to study several financial institutions such as residential housing saving funds, real estate investment funds and real estate investment trusts in order to mobilise resources for the real estate market; and
  • The State Bank of Vietnam to (i) strictly control credit with respect to the real estate business sector and (ii) strengthen inspection and supervision works with respect to credit granting activities for real estate business and strictly handle violations in the monetary and banking sectors.
3. Information systems
  • The Ministry of Construction to push Provincial People’s Committees to complete and put into operation soon the housing and real estate market information systems; and
  • Provincial People’s Committees to complete and put into operation soon the housing and real estate market information systems at their localities.
4. Supervision and inspection
  • The Ministry of Construction to coordinate with other authorities to strengthen inspection and require investors of urban area projects and housing development projects to synchronously build technical infrastructure, public infrastructure works, fire prevention and fighting systems in the projects and connect to the common infrastructure of the area before handing over residential houses to customers;
  • The Ministry of Natural Resources and Environment to strengthen inspection of the implementation of land use planning, land allocation, land lease, issuance of land use right certificates, the use and management of land in industrial zones, urban development projects, residential areas and resorts using large land areas, projects having signs of violations in managing and using land; and
  • Provincial People’s Committees:
    • to check and review real estate projects that have been issued with in-principle investment decisions or approvals before 23 April 2019 (especially high-end housing real estate projects) and handle as follows:
      • for projects that are not implemented, let land fallow or implement the project slowly, then the recovery is carried out according to the law on land;
      • for medium and high-end residential real estate projects that are in stock or whose investors desire to adjust the scale of apartments to affordable segment or to be used as social houses, then it is necessary to immediately resolve the procedure for conversion, to be completed in the third quarter of 2019; and
      • to offer solutions to resolve existing difficulties and problems with respect to social housing projects, housing projects in affordable and low-price segments facing difficulties in the area;
    • to strengthen the checking and inspection works and to strictly and promptly handle violations in complying with regulations on real estate investment and business; and
    • to check, review, publicise the list(s) of housing projects which investors have mortgaged to banks, projects that are behind the schedule due to legal issues, real estate projects that have construction violations, projects that do not undertake guarantee, projects that have not paid land use fees, projects that are behind schedule, projects that have not yet accepted the quality of works, have not yet accepted the fire prevention and fighting but they have been put into use, investors delay in performing procedures applying for certificates of land use right certificates to customers.

If you have any questions or require further information, please contact Phuc Nguyen, Quynh Lien Nguyen or Loan Danh of ZICOlaw (Vietnam) Ltd.


This alert is for general information only and is not a substitute for legal advice.