Minister of Construction Nguyen Thanh Nghị.
Creating a positive effect on the market
In 2023, the Ministry of Construction completed, advised the Government, submitted and was passed by the National Assembly, the Housing Law No. 27/2023/QH15 and the Real Estate Business Law No. 29/2023/QH15 at the 6th session, the 15th National Assembly with many new content.
According to Minister Nguyen Thanh Nghị, the two above-mentioned laws have fully institutionalized the viewpoints and principles of the Party, ensuring the unity and coherence of the legal system, continuing to promote decentralization, delegation, administrative procedure reform; shifting the focus from administrative tools to effective use of economic tools to promote housing development, stable and healthy development of the real estate market.
In addition, according to the head of the construction sector, the newly passed laws have also contributed to establishing control tools for authorities and authorized persons in the management and development of housing; especially new regulations on social housing policies, development of worker accommodation, housing for armed forces, and strengthening the role of local authorities in taking care of housing for the people…
The reality shows that the passage of the two important Laws has created a positive effect on the market when the regulations are built towards transparency and professionalization of the activities of all market participants, from business investors to home buyers or intermediary units, etc.
In addition to expectations of positive recovery of the real estate market, a new point that experts highly appreciate in the Housing Law is the institutionalization of the provision on the Vietnam General Confederation of Labor as the managing agency for social housing investment is a highly expected new point.
According to Mr. Le Van Nghĩa, Head of the Project Management Board of the Vietnam General Confederation of Labor, this model is very appropriate: first, it has houses, second, it has spacious technical infrastructure, third, it has cultural and sports venues invested by the Vietnam General Confederation of Labor, schools, kindergartens, health care… Therefore, this model is worthy of replication to provide settlement and employment for workers.
The reality shows that since 2017, the Vietnam General Confederation of Labor has piloted the model of housing for workers in the Dong Van Industrial Zone 2 (Ha Nam province) and the project is currently leasing all rooms to workers.
In addition, according to experts, the Housing Law (amended) also provides a clearer legal framework for investors to develop social housing.
“The new Housing Law has flexible incentives and can attract. For example, using 20% of the land fund of the project for developing commercial housing or business services,” said Mr. Nguyen Hong Chung, Deputy Chairman of the Hanoi Real Estate Club.
In addition to completing and passing the two important Laws, the Ministry of Construction also submitted to the Government, the Prime Minister issued 01 Decree; 01 Resolution, 01 Directive; 08 Decisions; 03 Dispatches and issued 11 Circulars according to their authority in 2023.
We believe that with laws passed like this will make individuals, investors, and developers much more confident in the market, thereby helping the market show signs of recovery in 2024
Ms. Duong Thuy Dung – CEO of CBRE Vietnam
Big goals in 2024
Regarding the goals of the construction industry in 2024, according to Minister Nguyen Thanh Nghị, completing the institution continues to be identified as the key task.
Accordingly, the Ministry of Construction has submitted and has been agreed by the Government to propose a Program for building laws and ordinances in 2024 of the Government for proposing the Urban Planning Law and the Rural Planning Law.
Accordingly, the Urban Planning and Rural Planning Law project is expected to be submitted to the National Assembly for opinion at the 7th session (May 2024) and passed at the 8th session (October 2024).
In addition, according to Minister Nguyen Thanh Nghị, in 2024, the Ministry of Construction will also complete the proposal dossier to build the Urban Development Management Law; Water supply and drainage law submitted to the government, proposed to be included in the program to build laws, ordinances in 2025.
Regarding specific progress, the Ministry of Construction has submitted to the Government for approval of the proposal to build the Water supply and drainage Law; Urban Development Management Law.
Regarding the Water supply and drainage Law, so far, the Government has given comments, approved the proposal to build the Law, and now the Ministry of Construction is continuing to complete the proposal dossier to submit to the Ministry of Justice for synthesis and inclusion in the government’s proposal for programs to build laws, ordinances in 2025.
Regarding the Urban Development Management Law, on December 19, 2023, the Permanent Government held a meeting, gave opinions on the proposal dossier to build the Law.
Also, according to Minister Nguyen Thanh Nghị, in addition to building the Urban Development Management Law; Water supply and drainage law, one of the important tasks identified in 2024 is to build, submit for issuance, and issue documents according to their authority to detail and guide the implementation of the 2023 Housing Law, the 2023 Real Estate Business Law, ensuring quality, progress, and effectiveness at the same time with the Laws.
“It is necessary to strengthen the work of reviewing, systematizing, inspecting, and monitoring the implementation of legal regulatory documents to timely assess the impact of the Law, policies and mechanisms that have been issued; detect obstacles, shortcomings, proactively propose amendments and supplements,” Minister Nguyen Thanh Nghị emphasized at the Conference on implementing tasks in 2024 of the Construction industry.
