Legal bottlenecks stall 1,200 realty projects in Vietnam
Legal problems have stalled about 1,200 real estate projects across the country and possible solutions are being reviewed for around 500 of these, an industry leader has said.
Nguyen Van Dinh, chairman of the Vietnam Association of Realtors (VARS), said the situation has caused a temporary supply shortage. The majority of existing property products are either unaffordable or do not meet buyers’ needs in other aspects, he added.
A real estate project in Ho Chi Minh City has remained idle since its launch in 2019. Photo The Investor/Vu Pham.
“With the gradual effect of market-boosting policies and mechanisms, the real estate market will gain momentum in the coming time. Stronger customer confidence will help improve supply from projects that have their hurdles removed.”
The expert reckons that recent “positive” amendments to the Laws on Housing and Real Estate Business made by the parliament last month will also lend a helping hand in improving the situation.
The undersupply issue has worsened because Ho Chi Minh City authorities have approved very few projects over the last three years, according to the HCMC Real Estate Association (HoREA).
HoREA data shows that seven projects received the green light from the city administration in 2021. In 2022 it was just two projects and just two have been approved in the first half of this year.
As a result, just 13 developers, half the number in 2022, launched a combined 15,020 apartments for sale in the first three quarters this year; and these were mostly high-end ones.
The number of housing projects and products on offer since 2020 has decreased significantly compared to 2017, which was a prime year for the market in the last decade with developers of 92 projects introducing 42,991 units to the market.
In a move to stimulate supply, a task force that the HCMC administration established in May has helped clear obstacles for 17 property projects. Of these, three notable are: the Song Viet Complex project of Quoc Loc Phat Company; a social housing project of VTHouse Company and Tam Giao JSC; and a project of the Suntory Pepsico Vietnam Beverage Company.
Market observers say that the process of removing hurdles for real estate projects has yielded limited results due to long-standing problems including weakened financial health of property firms and officials’ fears of making mistakes.
- Related News
- Read More
Foxconn plans to expand product portfolio at $200 mln plant in central Vietnam
Fu Wing Interconnect Technology (Nghe An) Co., Ltd., a subsidiary of Taiwan-based electronics giant Foxconn, plans to expand the range of products at its $200 million factory in Vietnam’s central province of Nghe An.
Industries - Wed, May 7, 2025 | 3:35 pm GMT+7
Sumitomo okayed to build 4th industrial park in Vietnam
With an industrial park to develop in the central province of Thanh Hoa, Japan's Sumitomo will expand its industrial real estate portfolio in Vietnam to four projects amid rising FDI inflows.
Industrial real estate - Wed, May 7, 2025 | 2:16 pm GMT+7
Vietnam upholds 8% GDP growth target despite US tariff turmoil
The Vietnamese Government is persistent with its 8% growth goal though disadvantages outweigh advantages, with a focus on solutions to respond to U.S. reciprocal tariffs, PM Pham Minh Chinh told a cabinet meeting on Tuesday.
Economy - Wed, May 7, 2025 | 12:42 pm GMT+7
Vietnam's sugar major Quang Ngai Sugar JSC posts lowest Q1 profit in 2 years
Quang Ngai Sugar JSC, owner of famous soy milk brand Fami in Vietnam, reported its weakest Q1 profit in two years as its sugar business struggled under pressure from smuggled and imported sugar, though the soy milk segment continued to support revenue.
Companies - Wed, May 7, 2025 | 11:14 am GMT+7
Listing, state capital divestment “blockbusters” new catalysts for Vietnam's stock market
As Vietnam’s stock market enters an information lull following Q1 earnings releases and AGMs, recent news about major listing and state capital divestment plans are expected to be significant catalysts for the country's benchmark VN-Index.
Finance - Wed, May 7, 2025 | 8:17 am GMT+7
Construction of first locally-owned semiconductor factory begins in Vietnam
CT Semiconductor, a subsidiary of CT Group, has begun the second phase of construction on what is set to become Vietnam’s first semiconductor chip factory fully owned by a domestic company.
Southeast Asia - Tue, May 6, 2025 | 10:50 pm GMT+7
Japanese retailers step up business activities in Vietnam
Japanese retailers Aeon and Sumitomo have planned to expand their networks in Vietnam, Nikkei Asia reported on Monday.
Southeast Asia - Tue, May 6, 2025 | 10:39 pm GMT+7
Vietnam's budget carrier Vietjet sees 24% profit hike in Q1 on int’l growth surge
Vietjet Aviation JSC (HoSE: VJC) reported a 24% year-over-year increase in consolidated profit for Q1, driven by strong international expansion and operational excellence, reinforcing its leadership in regional connectivity.
Southeast Asia - Tue, May 6, 2025 | 10:35 pm GMT+7
Northern Vietnam city Hai Phong claims top spot for first time in Provincial Competitiveness Index
The coastal city of Hai Phong has, for the first time, topped the 2024 Provincial Competitiveness Index (PCI) with a score of 74.84, marking a significant milestone in its economic governance journey.
Southeast Asia - Tue, May 6, 2025 | 10:20 pm GMT+7
Malaysia initiates tariff talks with US
Malaysia is pushing forward tariff negotiations with the U.S., while implementing various policies to support local industries and strengthening efforts to seek new export markets.
Southeast Asia - Tue, May 6, 2025 | 10:12 pm GMT+7
ASEAN’s largest economy slows to lowest growth since Q3/2021
Official data released recently indicates that Indonesia's economic growth decelerated in Q1 due to weakened domestic consumption.
Southeast Asia - Tue, May 6, 2025 | 9:59 pm GMT+7
Vietnam's agri major BAF reports record livestock profit since listing
BAF Vietnam Agriculture JSC in Q1 posted its highest livestock profit since listing in late 2021, thanks to a surge in pig output and revenue that nearly doubled year-over-year.
Companies - Tue, May 6, 2025 | 9:36 pm GMT+7
Amkor views Vietnam 'strong market' despite US tariff uncertainties
Amkor Technology, a U.S.-headquartered semiconductor firm, sees Vietnam a strong market in the mid and long term despite tariff uncertainties under the Trump administration, said an executive.
Investing - Tue, May 6, 2025 | 4:40 pm GMT+7
Over $7.7 bln in Vietnam's private placement corporate bonds to mature in last 3 quarters
More than VND200 trillion ($7.7 billion) in privately-placed corporate bonds will mature in the final three quarters of this year, with the real estate sector accounting for half, according to independent credit rating provider S&I Ratings.
Finance - Tue, May 6, 2025 | 4:16 pm GMT+7
Sumitomo to halve equity interest in $2.58 bln thermal power plant in central Vietnam
Sumitomo has decided to transfer 50% of the Japanese giant's equity interest in its wholly-owned operator of the $2.58 billion Van Phong 1 coal-fired power plant in Vietnam’s central province of Khanh Hoa.
Energy - Tue, May 6, 2025 | 3:54 pm GMT+7
Singapore's CapitaLand Development forms strategic partnership with Vietnam's Vinhomes
CapitaLand Development has expanded in Vietnam with two major moves - a strategic collaboration agreement with leading local developer Vinhomes and the unveiling of The Fullton, a $800 million low-rise residential project in Hung Yen province.
Real Estate - Tue, May 6, 2025 | 2:56 pm GMT+7
