On June 9, 2025, the Government Office issued a Notice on the Standing Government’s conclusion following a meeting regarding the real estate market. The meeting, chaired by the Prime Minister, involved the Minister of Construction, the Governor of the State Bank of Vietnam, representatives from relevant ministries, the Vietnam National Real Estate Association, real estate enterprises, and commercial banks. This Notice serves as a critical milestone, reflecting the Government’s resolute commitment to revitalizing and developing a sustainable and transparent real estate market.

The Government has introduced key solutions and is swiftly implementing these solutions:

Firstly, comprehensive decentralization and effective delegation of authority at all levels

The Government is accelerating decentralization and delegation, in line with the principle that central authorities focus on macro-management, institution-building, planning, and strategy, while local authorities are responsible for specific decisions. In early June, the Government issued eight Decrees delegating authority in the sectors of investment, land, environment, construction, and planning. For instance, in the land sector, most powers held by district-level People’s Committees has been transferred to the commune-level People’s Committee Chairperson, except for decisions regarding the use of land with water surfaces, such as lakes or ponds, spanning multiple communes or wards, which has been transfer to to the provincial People’s Committee Chairperson.

Secondly, reducing pre-approval and enhancing post-audit

The Government aims to significantly reduce overlapping and unnecessary licensing procedures, targeting a 30% reduction in the timeline for the authorities to issue pre-approvals and the relevant costs for compliance. Notably, procedures for investment policy approval, project appraisals, design evaluations, construction permits, and acceptance testing are expected to be removed.

Concurrently, the procedures for investment, basic design approval, technical design, fire prevention and fighting, and other requirements are expected to be consolidated into a single procedure under one Decree to shorten the investment and construction timeline.

Thirdly, developing decrees to implement National Assembly resolutions on piloting special mechanisms and policies for social housing development, as well as regulations concerning resort real estate and tourist apartments (condotels).

Fourthly, establishing a state-managed real estate and land use rights transaction center

The Government is exploring the establishment of a “Real Estate and Land Use Rights Transaction Center” managed by the Governmental authority. All real estate transactions and related procedures, including notarization, tax obligations, and land transaction registration, shall be carried out on a digital platform.

Lastly, planning to impose taxes on unused houses and real estate, and taxes on gains between the price applied by the local authority for determining land use fee and the purchase price of real estate products in projects, as well as taxing the gain generated from the transfer of real estate to limit speculation and price inflation in the real estate market.

In summary, the Government Office’s Notice is a timely and necessary response to the ongoing challenges in the real estate market. The Government’s proactive solutions not only reaffirm its commitment to supporting businesses but also lay the foundation for a transparent and sustainable investment environment.

However, for these policies to achieve practical effectiveness, synchronized, feasible, and consistent adjustments to related legal documents, including Laws, Decrees, and Circulars, are essential. Additionally, effective implementation also requires close coordination between central and local authorities.

Only under these conditions can the persistent cycle of “obstruction and resolution” in the management and development of the real estate market be effectively addressed.

Dentons LuatViet acknowledges and thanks Trainee Associate Khanh Hoang for his contribution to the article.