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Stuck in the Middle: Navigating the Challenges of Real Estate Brokerage in Vietnam

A recent survey by the Vietnam Academy for Real Estate Research and Evaluation (VARS IRE) revealed a concerning trend in the country’s real estate brokerage industry. According to the survey, an alarming 89% of brokers lack valid practice certificates, with nearly 52% having never received formal training. In contrast, 93% aspire to obtain the necessary qualifications to practice legally.

VARS IRE also highlights the fact that many local governments have failed to organize licensing exams, leaving thousands of brokers in a legal limbo. This situation not only disrupts transactions but also encourages illegal practices.

Adding to the challenges, substandard training remains prevalent. Numerous unqualified institutions offer condensed courses, falling short of the required 74-hour minimum. They often skip practical training and employ instructors who fail to meet legal standards, resulting in financial losses for students, legal risks, and a negative perception of the brokerage profession.

Compounding the issue, the Real Estate Business Law of 2023, which comes into effect on August 1, 2024, has left tens of thousands of brokers without valid practice certificates. The situation arose due to a halt in registration and examination processes, with no designated authority taking charge.

As explained by Ms. Hoang Thu Hang, Head of the Real Estate Market Management Division at the Department of Housing and Real Estate Market Management under the Ministry of Construction, the previous regulations tasked the provincial Departments of Construction with issuing practice certificates. However, in 2023, Decree 96 transferred this responsibility to the provincial People’s Committees, creating legal complications in implementing the licensing exams.

The merger of local governments and the reorganization of provincial departments have further delayed the exams. Nonetheless, the recent revision of Decree 96, now known as Decree 144/2025, returns the authority to issue practice certificates to the Departments of Construction, which is expected to streamline the process.

Moving forward, the Departments of Construction will be responsible for organizing the exams, and a critical change in the law will require candidates to provide proof of completing a training course before sitting for the licensing exam. This ensures that aspiring brokers receive adequate preparation and understanding of the profession.

Raising the Bar: Strategies to Enhance Broker Competency and Ethics

Mr. Nguyen Thai Binh, CEO of Dong Tay Land, shared his insights at a recent seminar hosted by the Vietnam Association of Real Estate Brokers (VARS) in Ho Chi Minh City. He emphasized the importance of knowledge, skills, and attitude when recruiting brokers. However, in reality, only about 10% of personnel have valid certificates, leading many companies to develop their training programs, which lack standardized curricula.

This situation has resulted in instances of brokers making mistakes or even exploiting clients (“lùa gà”), causing harm to both businesses and the market. Similarly, Ms. Tran Thi Cam Tu, CEO of EximRS, shared that only 10% of their staff possess valid certificates. As a result, EximRS has had to partner with training institutions to provide certification for their employees. The recent disruption in the examination process has created challenges for businesses, and Ms. Tu urged the Ministry of Construction to expedite the exam process and consider standardizing criteria nationwide, including the option of online exams, to prevent the use of fake certificates.

Ms. Nguyen Thuy Duong, Director of CTS Construction Research and Training JSC, pointed out that many individuals view the brokerage certificate as a mere formality rather than a testament to their knowledge. As a result, they opt for shorter, cheaper, and easier courses instead of comprehensive training. Thus, the Ministry of Construction’s efforts to standardize and enhance training quality are crucial.

Mr. Vuong Duy Dung, Deputy Director of the Housing and Real Estate Market Management Bureau, suggested improvements in curriculum, examination methods, and the certification process. He even proposed international standardization to enhance quality and consistency across the country.

Mr. Pham Lam, Vice President of VARS, underscored the importance of genuine learning, practice, and ethical conduct in the profession. He warned that unethical business practices could lead to legal repercussions for both clients and brokers. Mr. Lam cited instances of real estate companies engaging in fraudulent activities, resulting in the prosecution of not only the company leaders but also their employees. In the long run, Mr. Lam advised companies to be more stringent in their hiring practices, prioritizing brokers with valid practice certificates, and providing supplementary training to ensure a competent and ethical workforce.

“Standardizing training and certification is not just a legal requirement but also a step towards earning society’s respect and clients’ trust,” asserted Mr. Lam. “It is a crucial step in building a team of knowledgeable, skilled, and ethical brokers, which will contribute to a transparent, stable, and sustainable real estate market.”