Lack of Coordination Planning - A Major Challenge for the Real Estate Market.

The real estate market in Vietnam is developing rapidly, with many new projects emerging in major cities and suburban areas. However, along with this development, the issue of inconsistent planning is becoming a serious challenge, significantly affecting the stability and sustainability of the market.

Causes of Inconsistent Planning

1.Lack of coordination among different levels of government: The urban planning process often involves multiple agencies and departments. The lack of unity in plans and development goals leads to poorly planned real estate projects, resulting in patchy development.

2. Slow approval of planning: The project approval and construction permit processes often take a long time, causing delays in project implementation. This increases investment costs and creates difficulties for investors in meeting deadlines.

3. Uneven development between regions: While central urban areas are experiencing strong development, many suburban and rural areas lack investment in infrastructure. This creates a significant disparity in quality of life and connectivity between regions, reducing people's access to essential services.

4. Lack of accompanying infrastructure planning: Many real estate projects are implemented without sufficient investment in transportation, healthcare, and education infrastructure, causing these areas to be isolated or face difficulties in connecting with economic centers.

The Consequences of Inconsistent Planning

1 Traffic congestion and infrastructure overload: The rapid development of projects without accompanying investment in infrastructure has led to serious traffic congestion, especially in large cities like Hanoi and Ho Chi Minh City. This not only causes inconvenience for residents but also reduces labor productivity and increases social costs.

2. Reduced quality of life: Developing residential areas without considering the need for public services such as schools, hospitals, and recreational areas has diminished the quality of life for residents. Many people have to travel far to access basic services, causing them to waste time and money.

3. Increasing investment costs for developers: The lack of synchronized planning forces real estate businesses to invest more in internal infrastructure construction, while also facing difficulties in connecting with surrounding utilities. This not only increases costs but also prolongs project implementation time.

4. Imbalanced supply and demand: Inconsistent planning leads to an imbalance between supply and demand in certain segments of the real estate market. In central areas, there is an excessive supply of high-end housing, while the demand for social housing and affordable housing is not adequately met.

Solutions for the Problem of Inconsistent Planning

1. Enhance coordination among management agencies: The government needs to establish effective coordination mechanisms among different levels, departments, and localities to ensure consistency in planning and implementation of real estate projects.

2. Promote administrative reform: It is necessary to streamline the approval and licensing processes for real estate projects, creating favorable conditions for investors and expediting the project development process.

3. Synchronous infrastructure planning: Developing transportation infrastructure, public services such as schools, hospitals, and recreational areas should be prioritized to ensure sustainable development of new urban areas.

4. Investment in suburban and outskirts areas: Encouraging investment in suburban areas with developed infrastructure to reduce pressure on central urban areas and create more balanced development opportunities.

Synchronous planning is a major barrier to the development of the real estate market in Vietnam. Resolving this issue requires not only efforts from the government but also close cooperation from real estate businesses. We are committed to accompanying the market to bring sustainable development solutions, contributing to the construction of a synchronized and stable real estate market.