Vietnam’s real estate market in 2021

12020 marked dramatical changes in Vietnamese laws regulating on investment, construction, real estate market. It also sets the basis for real estate market in 2021.

In the report on real estate market in the fourth quarter and the whole year of 2020, Ministry of Construction stated that 2020 marked a lot of obstacles for the world economy in general and Vietnamese’s in particular. In Vietnam, besides the negative impacts of Covid-19, climate change also causes a lot of storms, flood,… in the Middle part.

At the beginning of the year, the government and Ministries had urgently researched and enacted new regulations, policies to get the economy over the obstacles, recovering and developing. In March, 2020, the Government assigned the Ministry of Construction, Ministry of Plaining and Investment to supplement and remove the obstacles in capital resources and to focus on completing policies on social housing development.

In general, 2020 marked dramatical changes in Vietnamese laws regulating on investment, construction, real estate market.

The new Law on Construction 2020

At the 9th meeting on 17th June, 2020, the Embassy passed Law on amendments and supplements some articles of the Construction Law (Law No. 62/2020/QH14), such as: advertising works; passive telecommunications technical infrastructure works … are license-free.

Processing time is shortened 10 days in comparison to the Construction Law 2014. Accordingly, the processing time is only 20 days.

Besides, the elimination of regulations on sufficient capital when starting construction (Clause 39, Article 1 of the Law on Construction amended and supplemented by 2020), it is no longer stipulates the conditions for adequate capital arrangement according to the construction progress;

Specifying a number of projects subject to environmental impact assessment (Clause 11, Article 1 of the Revised Law on Construction 2020). The new law has supplemented regulations on preliminary assessment of environmental impacts when preparing construction investment projects;

Decentralization in implementation of procedures for granting construction permits (Point c, Clause 36, Article 1 of the Law on Construction amended and supplemented by 2020) has also been increased. Accordingly, the provincial People’s Committee has the authority to issue construction permits for special-level works instead of the Ministry of Construction as previously prescribed (Note: This regulation takes effect from August 15, 2020).

Law on Investment 2020

Also, in the meeting, the Embassy passed the Law on Investment 2020 with many notable changes, such as: the unanimity of the procedures for approving investment protocols, approving investors, approving investors in (related) real estate projects under the law on investment;

Amending and supplementing the Housing Law 2014, the Law on Real Estate Trading 2014, Law on Environmental Protection, Law on Corporate Income Tax, … and combined with the Construction Law (amended) has ensured the synchronization of the legal system related to investment policy approval, investor approval, investor recognition real estate projects…

Decree No. 25/2020/ND-CP

On April 20, 2020, the Government issued Decree No. 25/2020/ND-CP regulating on the implementation of the Bidding Law, which has solved the long-standing bottlenecks of real estate projects on procedures for land allocation to successful real estate project bidders.

Decree No. 68/2020/ND-CP

On June 24, 2020, the Government issued Decree No. 68/2020/ND-CP amending and supplementing Clause 3, Article 8 of Decree No. 20/2017/ND-CP dated February 24, 2017 of the Government regulating on tax administration for enterprises with associated transactions.

Decree No. 148/2020/ND-CP

On December 18, 2020, the Government issued Decree No. 148/2020/ND-CP amending and supplementing a number of decrees detailing the implementation of the Land Law, with many new regulations such as basic regulations on handling the State-managed land plots interspersed in investment projects, housing projects;

Regulating on purchasing property on land, including land that its users do not have the right to transfer to implement investment projects and regulating on land use transfer, land lease for the small lands belong to the Government.

Regulating on land allocation and land lease in case of exemption from land use fees or land rent; Regulating the mechanism of land allocation, land lease for the narrow land parcels managed by the Government;

Besides, there are also new regulations on subdivide plots and to sell land plots and to strictly regulate conditions for subdivision and sale of housing projects; the conditions for land parcel separation, land parcel consolidation and the minimum area for which the land parcel can be split to manage, strictly control the situation of division of plots, sale of land plots …

Ministry of Construction also reveals that to be able to complete the system and remove obstacle for real estate market, the Ministry is accelerating some important new policies to submit to the Government for consideration and promulgation. Those are Decree amending and supplementing some articles of the Government’s Decree No. 101/2015/ND-CP dated October 20, 2015 on renovation and reconstruction of apartment buildings; The Government’s resolutions on solutions to encourage the development of low-cost commercial housing projects create a good basis and motivation for the real estate market in 2021 to continue to develop stably.

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