Vietnam’s real estate sector ranks third among industries with high dispute rates

In 2024 alone, the real estate sector accounted for 14% of the total number of disputes in Vietnam, ranking third among industries with high dispute rates, according to the Vietnam International Arbitration Centre (VIAC).

The statistics were released at the conference "Real estate transactions in the context of market and legal fluctuations", organized by the Investment and Trade Promotion Centre of HCMC (ITPC) and VIAC in Ho Chi Minh City on Thursday.

VIAC also reported that the figures reflect the paradox that the legal framework is changing rapidly, but the compliance and risk management capacity of enterprises has not kept up.

Ho Thi Quyen, deputy director of ITPC, said that the prerequisite for attracting investors today is a transparent and stable environment, where enterprises can confidently plan long-term strategies without worrying about unexpected legal risks.

Luong Van Ly, a senior advisor at Global Vietnam Lawyers LLC, analyzed that the lack of a clear legal framework turns every transaction into a gamble. If the status of the subject is not determined, the recipient may lose the right to inherit legal obligations, and the project is at risk of stagnation because the management agency refuses to approve it.

According to associate professor Vo Tri Hao, an expert at the Institute of International and Comparative Law, University of Economics and Law, Ho Chi Minh City National University, the abuse of ambiguous terms not recognized by law makes customers mistakenly believe that the project is legal.

"When disputes arise, the buyer is often in a weak position, while the enterprise loses its reputation and has to face a series of legal consequences."

Phan Duc Hieu, a standing member of the National Assembly's Economic and Financial Committee, recommended that in the coming time, the parliament will continue to consider up to 48 draft laws.

"That means the 'rules of the game' will continue to change rapidly. Enterprises cannot consider updating the law as a short-term task but must build a legal department as a permanent process. A strong legal department is like a navigation map, helping enterprises find the right path, avoid dead ends, and stay ahead of trends," he noted.

Lawyer Chau Viet Bac, deputy director of the Vietnam International Arbitration Center (VIAC), HCMC branch, emphasized that it is important to turn understanding the law into a risk prevention mechanism.

"Each contract needs to be designed as a legal shield, clearly allocating rights and responsibilities. Enterprises also need an internal control system, like an 'immune system,' to prevent risks right from the beginning," he added.