The Prime Minister of Vietnam directs focus on rectifying and addressing price manipulation and real estate speculation in Vietnam

The Prime Minister of Vietnam directs focus on rectifying and addressing price manipulation and real estate speculation in Vietnam​ (Image from the internet)

On January 15, 2025, the Prime Minister of the Government of Vietnam issued Official Telegram 03/CD-TTg regarding focusing on rectifying and addressing real estate price manipulation, speculation, and inspecting real estate development projects.

The Prime Minister of Vietnam directs focus on rectifying and addressing price manipulation and real estate speculation in Vietnam

To strengthen control and stabilize the real estate market, land prices, and promptly rectify and address real estate price manipulation and speculation, the Prime Minister of the Government of Vietnam requires:

- Ministers, Heads of ministerial-level agencies, agencies under the Government of Vietnam, Chairmen of the People's Committees of provinces and centrally-run cities:

Continue to strictly and effectively implement the tasks and solutions directed by the Government of Vietnam and the Prime Minister of the Government of Vietnam in resolutions, directives, decisions, telegraphs, etc., related to solving and promoting the safe, healthy, and sustainable development of the real estate market; Enhance communication, publicize, and transparently disclose information related to housing and the real estate market ensuring timeliness, completeness, and accuracy; simultaneously, increase effective control and censorship of inaccurate, unofficial social media channels that may negatively impact the psychology of the people, investors, customers, and the market.

- Minister of Construction shall:

+ Lead cooperation with the Ministry of Natural Resources and Environment and relevant ministries, agencies to research and propose a pilot scheme of the model “Real Estate and Land Use Rights Transaction Center Managed by the State,” aimed at electronic transactions to enhance management efficiency and increase transparency in real estate transactions on the market; report to the Prime Minister of the Government of Vietnam in the second quarter of 2025.

+ Coordinate with the Ministry of Public Security to update, complete, and operate the national database system on housing and the real estate market connected with national databases on population, notary, land, investment, construction activities, etc., ensuring regular and timely updates on the legal status of projects, eligible real estate for business, real estate inventory; about real estate transactions; to be completed in 2025.

+ Coordinate with the Ministries of Justice, Finance, Natural Resources and Environment to research the securities transaction model to implement digital transformation to interlink procedures from real estate transactions, notarization, taxation, and land transaction registration in an electronic environment to ensure transparency of assets, transaction prices thereby managing and preventing tax evasion, report to the Prime Minister of the Government of Vietnam before June 30, 2025.

+ Proactively monitor the real estate market situation and closely coordinate with the Ministry of Natural Resources and Environment, Ministry of Finance, and localities to promptly adopt measures and solutions to regulate and stabilize the market through adjusting land use planning, urban and rural planning, urban development and housing development programs and plans, product structure of real estate projects, etc., according to authority or propose to competent authorities as per legal regulations.

+ Direct, cooperate with the Ministry of Public Security and the People's Committees of provinces, centrally-run cities to inspect, check, review business activities of real estate enterprises, investors, real estate trading floors, and real estate brokers in the area, especially in areas and projects with abnormal price increases; promptly rectify, prevent and handle violations strictly according to authority.

- Minister of Natural Resources and Environment shall:

+ Direct, cooperate with People's Committees of provinces, centrally-run cities to enhance inspection, review activities of land price determination, issuance of land price lists, compensation, site clearance, auction of land use rights, etc.; promptly rectify, prevent and strictly handle violations according to authority, especially acts exploiting land use rights auctions for profiteering, causing market disruption.

+ Cooperate with the Ministry of Construction and related ministries to research and implement digital transformation to interlink procedures from real estate transactions, notarization, taxation, and land transaction registration in an electronic environment.

- Minister of Finance shall:

+ Research and propose tax policies to limit real estate speculation activities, ensure compatibility with Vietnam’s socio-economic conditions and international practices, including researching tax plans on the price difference between land levy calculation price and selling price of real estate products of projects; tax on transaction differences, report to the Prime Minister of the Government of Vietnam before April 30, 2025.

+ Flexibly and synchronously manage fiscal, financial, and monetary policy tools to unblock capital flows for general socio-economic development and particularly the real estate market.

+ Coordinate with the Ministry of Construction and related ministries to research and implement digital transformation to interlink procedures from real estate transactions, notarization, taxation, and land transaction registration in an electronic environment.

- Governor of the State Bank of Vietnam directs thorough review and inspection of credit institutions lending with real estate collateral required to be objectively and reasonably valued, complying with regulations and focusing on credit risk management. In particular, do not abet acts of price manipulation, creating ‘virtual’ pricing levels, destabilizing and distorting the market.

- Minister of Public Security directs professional units and local police to actively grasp the situation, promptly detect, investigate, strictly handle in accordance with legal regulations against organizations and individuals violating to the extent of criminal liability regarding land use rights auction; disseminating misleading information with the intent to create virtual fever and defraud the public for profit.

- Chairmen of People's Committees of provinces, centrally-run cities shall:

+ Propagate, disseminate law and organize the implementation of newly issued policies and laws related to the real estate market. Promptly publish information on housing and the real estate market, publicly disclose documents announcing real estate eligible for business; urban and rural planning, housing development programs; land use planning; urban development programs; … ensuring market information transparency.

+ Quickly resolve administrative procedures in the investment and construction of housing, real estate projects (such as investment policy approval, project appraisal, change of land use purpose, land price determination, land levy calculation,...).

+ Strictly control the granting of real estate broker profession certificates; operations of real estate trading floors, enterprises providing real estate brokerage services in the locality, ensure transparency, professionalism in these activities, prevent and limit lack of control that may cause market instability.

+ Strengthen inspection to promptly rectify, prevent, and strictly handle violations according to authority on the activities of real estate enterprises, investors, real estate trading floors, enterprises providing real estate brokerage services, land use rights auctions in the locality, with attention to the legality, conditions, public information ... of real estate brought into business showing abnormal price increases; prevent profiteering, market disruption.

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