new policies affecting the real estate industry in Vietnam, new policies affecting the real estate market in Vietnam, real estate market in Vietnam

Vietnam: new policies will strongly affect the real estate market

This is the revelation of the Ministry of Construction at Real Estate Forum 2021: New driving force for the real estate market, organized by the Vietnam Chamber of Commerce and Industry and the Vietnam Business Forum on the afternoon of July 16.

There will be many new policies affecting the real estate industry

Construction real estate is a level 1 industry, which can be said to be equivalent to the processing, manufacturing, and agricultural industries in Vietnam. The contribution of real estate construction in GDP in recent years is about 11%. In which, real estate contributes about 4.5% of GDP and construction about nearly 6%.

Thus, real estate activities always have an important role. Revenue from real estate accounts for more than 2% and profit accounts for about 7% of the entire Vietnamese business sector, driving up to 35% of industries and sectors of the economy.

The Ministry of Construction will have a series of new policies, more specific regulations, in order to limit or control trading activities of the market, especially transactions related to land plots and real estate business in 2021.

The real estate market continues to face difficulties such as:

First, due to the epidemic, although real estate is not a major industry affected by the pandemic, the prolongation will greatly affect investment activities from other markets.

Second, the land mechanism has not been removed in time, although the investment activities related to construction have been removed, so the problems of land allocation, land lease, compensation for land clearance still exist.

Third, the authorities in many localities are new governments and are implementing new policies locally, so there are no strong policies affecting the market.

Fourth, changes in the domestic and world economies have affected the real estate market and will probably last until at least the end of 2022 to have a great impact, contributing to the favorable development of the market.

New impetus to the real estate market

The real estate market in 2021 is and will continue to receive many new development impulses from a variety of factors.

Specifically, the adjustment of many institutions on real estate construction and business, on the structure of supply-demand, and increased application of marketing technology and promotion policies in the distribution and exploitation of real estate products.

In particular, extending the tax payment time and reducing the burden of financial obligations related to the Covid-19 epidemic that is being implemented for the whole year 2020 – 2021 also helps banks and businesses have more cheap resources. for financial support in the real estate business.

Besides, 2021 is the lowest interest rate in the past 15 years. Lower interest rates are always a good impetus for the real estate market because it helps to reduce capital costs and repayment conditions, so households and young people will be convenient to buy houses or invest.

FDI inflows into Vietnam and economic resilience will be strong impulses for the real estate market to recover. Along with an increase in exports due to the benefits of signed trade agreements, tourism activities will gradually warm up and more foreign investors will gradually be allowed to enter Vietnam. Macroeconomic policies, financial policies that are adjusted flexibly will also contribute to promoting and creating motivation for the real estate market.

ASL LAW is the top-tier Real Estate law firm in Vietnam. If you need any advice, please contact us for further information or collaboration.


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