04 Policies impacting the real estate market in Vietnam in 2023

04 Policies impacting the real estate market in Vietnam in 2023 (Image from the Internet)

In 2023, 04 major policies impacting the real estate market in Vietnam include:

1. Annulling land price frameworks, determining land prices based on market value in Vietnam

This is a prominent content mentioned in the draft Law amending Land Law.

At the same time, the abolition of land price frameworks and determination of land prices based on market mechanisms is also mentioned in Resolution 18-NQ/TW dated June 16, 2022.

Currently, according to the provisions of Clause 1, Article 114 of the 2013 Land Law, land price frameworks are used by the Provincial People's Committees to build land price tables. Meanwhile, in Articles 132, 133 of the draft Law amending Land Law, the determination of land prices in the land price table will be based on market value.

Determining land prices based on the market is considered a significant breakthrough in the management and use of land, promoting a more transparent and healthy real estate market, reducing speculation, fake fever, and particularly avoiding tax evasion by buyers and sellers of land.

2. Higher taxes for those owning multiple houses and lands

The Central Committee also mentioned this content in Resolution 18-NQ/TW dated June 16, 2022, on "Continuing to innovate, complete institutions and policies, enhance the effectiveness, efficiency of land management and use, creating momentum to turn our country into a high-income developed country."

To improve financial mechanisms and policies on land, the Central Committee requests stipulating higher tax rates for those using large areas of land, owning multiple houses, speculating on land, delaying land use, or leaving land fallow.

Higher taxes on those owning multiple properties will avoid land speculation and reduce negative issues related to land.

3. Requiring investors to provide information about projects and real estate transactions in Vietnam

According to Clause 9, Article 18 of Decree 44/2022/ND-CP, real estate project investors provide information and data about real estate projects as follows:

- Provide information and data about real estate projects and eligible real estate products for transaction in the reporting period.

The declaration, provision of information, and data about the project, the structure of real estate types under the project approved by a competent authority shall be carried out before the commencement of construction notification or before the competent authority issues the construction permit to implement the project (if any);

The declaration, provision of information and data about eligible real estate transactions and the posting of notification documents by the Department of Construction about eligible housing for sale or lease in the future are to be done before the investor puts the project's real estate into transactions;

- In the case of transferring the entire project or a part of the project, the transferee investor performs the provision of information and data; the transferor investor must adjust and amend the project’s information and data accordingly. The housing and real estate market information system management authority shall issue new accounts and guide access, declaration, provision of information and data for the transferee investor;

- Declaration, provision of information, and data about the project's real estate transaction situation in the reporting period.

To access information about housing and the real estate market, organizations and individuals in need can do so through one of the following three methods:

- Through the information portal of the housing and real estate market information system at the displayed address; the electronic information portal of the Department of Construction;

- Through request forms or request documents;

- Through a contract between the housing and real estate market information system management authority and the entity exploiting and using the housing and real estate market data as regulated by law.

Thus, the public disclosure of housing and real estate market information will contribute to the transparency of the real estate market.

4. The real estate bond market will develop more substantially in Vietnam

Decree 65/2022/ND-CP issued on September 16, 2022, amends and supplements Decree 153/2020/ND-CP on private placement and trading of corporate bonds.

Decree 65/2022/ND-CP has increased the responsibilities of investors when purchasing corporate bonds. For instance, investors must read the disclosure information and personally sign off on receiving all the information disclosed by the enterprise; moreover, they must understand the law and bear responsibility for investing in corporate bonds...

Nhu Mai

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