The Property Market Reset: A New Cycle of Prosperity

17 February, 2025

(Illustration image. Source: Vietnam+)

Following the streamlining and reorganization of the apparatus of ministries, sectors, and branches towards “Agility-Strength-Efficiency-Effectiveness-Efficiency,” representatives from several ministries, sectors, and experts believe that this is an opportunity for the real estate market to “transform” and be ready to enter a new cycle of more glorious and sustainable development.

Administrative procedures will be simplified.

On this issue, Mr. Le Van Binh, Deputy Director of the Land Department (Ministry of Natural Resources and Environment), said that the real estate market is currently managed and influenced by many agencies and sectors. For example, the Ministry of Natural Resources and Environment manages land, while the Ministry of Construction manages real estate and housing projects, and banks manage credit…

However, the streamlining process of the apparatus in related sectors, especially in the Ministry of Natural Resources and Environment and the Ministry of Agriculture and Rural Development, has shown to be beneficial for managing and developing the real estate market.

“For instance, there are currently three units in the Ministry of Natural Resources and Environment that manage land. Merging them into one will unify the guidance provided to localities. It will also be more convenient to deploy legal regulations related to land. If localities or businesses have questions or inquiries, it will be easier to provide a unified response,” said Mr. Binh.

On a broader scale, according to Mr. Binh, the merger of the Ministry of Natural Resources and Environment with the Ministry of Agriculture and Rural Development into the Ministry of Agriculture and Environment will also facilitate land management.

“There have been issues related to the management of the Ministry of Agriculture and Rural Development, such as forest and rice land management. With the unification into one ministry, management will be much more convenient. For example, in the case of rice land, the process of converting rice land for other purposes will no longer require back-and-forth communication to seek approval. I believe this is a clear and very favorable aspect,” shared Mr. Binh.

Moreover, Mr. Binh added that if the localities are also merged, businesses will have an even smoother process as they won’t need to run to multiple related departments for permits and administrative procedures. Furthermore, in the current context, the merger will be implemented swiftly, without much waiting time, so there will be almost no impact on operations and solving practical problems.

“Regarding the Ministry of Natural Resources and Environment, we have been preparing for a month before Tet, and we are now ready. Once the National Assembly meets and issues a resolution, we will promulgate decrees on the functions and powers of the ministries and sectors. The Minister will also issue regulations on the functions and tasks of the departments and bureaus within the ministry,” informed Mr. Binh.

Mr. Vuong Duy Dung, Deputy Director of the Housing and Real Estate Market Management Bureau (Ministry of Construction), also stated that streamlining and reorganizing the apparatus is the right direction. This is also an opportunity for many sectors, including the real estate sector, to develop through the simplification of administrative procedures.

“After streamlining and reorganizing the apparatus of related ministries, sectors, and branches, the procedures for investing in a real estate project will be significantly reduced. Currently, investing in a real estate project requires calculating the investment plan, planning, land, and construction, involving many administrative procedures (usually requiring 30-40 major procedures, not to mention minor ones). With the streamlined apparatus and simplified procedures, project implementation will be faster. This is a benefit for real estate projects and many other fields,” said Mr. Dung.

Mr. Dung also believed that with clear delegation and decentralization from the central to local levels, localities would have to adapt to the new apparatus and functions. In reality, the current legal regulations on land and housing have mostly delegated functions and tasks to localities.

(Illustration image. Source: Vietnam+)

“For example, the inspection and appraisal of projects and grade-1 constructions (large-scale constructions) used to be the responsibility of central agencies, but now, localities will have to prepare the apparatus and personnel to appraise these projects. When we organize well and have a good apparatus, it will help speed up the implementation of real estate projects, thereby increasing the supply for the real estate market,” said the representative of the Ministry of Construction.

Two scenarios from a business perspective.

Meanwhile, Mr. Nguyen Van Dinh, Vice President of the Vietnam Real Estate Association and President of the Vietnam Real Estate Brokers Association, said that from a business perspective and based on market research, he still has concerns about two possible scenarios for the real estate market in the future.

In the first scenario, according to Mr. Dinh, the streamlining and merging of state management agencies’ apparatus at the central and local levels will promote the real estate market. This will help reduce time, costs, and legal policies, enabling the real estate market to be ready to enter a new cycle of glorious and positive development.

As for the second scenario, the negative one, Mr. Dinh said that if the staff of the merged agencies are not assigned specific tasks and are not proactive in their work, the entire apparatus may “stand still.” Or, if no one dares to sign or take action, real estate investment procedures may continue to be delayed, dragging the entire real estate market backward or even causing it to “freeze.” However, this possibility is unlikely.

Some experts also expressed their views, stating that the policy of merging and streamlining the apparatus in the current context is necessary to create a driving force for the country’s stable development in the new era. However, in the short term, it is difficult to avoid certain impacts on the economy, including the real estate market. Especially with the changes in international trade since President Trump took office and implemented some policies of high taxation…

Nevertheless, with increasingly favorable and transparent legal corridors, along with a large population and the traditional perception of real estate as an asset and a last resort for investment, the Vietnamese real estate market has an irresistible appeal not only to domestic investors but also to foreign enterprises.

This is evidenced by the fact that FDI in real estate has always accounted for a large proportion of the investment capital structure for the sectors and trades in the economy.

Therefore, many optimistic experts believe that while short-term difficulties are inevitable, in the medium and long term, the real estate market will soon enter a new cycle of potentially prosperous development./.

Hung Vo

– 18:47 11/02/2025