The Necessity of Harmonizing Real Estate Laws

At recent conferences regarding contributions to the draft amendments of certain laws related to the real estate sector, many experts pointed out the conflicts and overlaps between legal regulations, creating significant difficulties for businesses and delaying investment activities.

Ms. Nguyen Thi Dieu Hong from the Legal Department of the Vietnam Chamber of Commerce and Industry (VCCI) emphasized that many businesses frequently face obstacles in obtaining ownership certificates for foreigners and transferring land use rights. This stems from discrepancies between the Land Law and the Housing Law. While the Housing Law allows foreigners to own real estate, the Land Law does not clearly define land use rights for foreign individuals, creating contradictions in the implementation process.

Furthermore, the bidding process and the selection of investors have encountered numerous challenges due to the lack of consistency between related laws, such as the Bidding Law, the Investment Law, and the Housing Law. This has led to confusion among businesses in fulfilling legal procedures, as well as ambiguity in the methods of selecting investors and the requirements for project auctions and bidding.

Mr. Nguy, Vice Chairman of the Council at Hanoi Law University, also added that the lack of clarity regarding the regulations on land allocation and leasing after successful bidding has reduced the market's appeal, hindering both businesses and investors in project implementation. This not only creates difficulties for investors but also diminishes the attractiveness of various regions, causing many potential development opportunities to be missed.

The lack of legal consistency not only disrupts business operations but also negatively impacts national competitiveness. These legal barriers extend project timelines, reducing the efficiency of real estate investment activities.

To address this issue, experts believe that legal amendments must be conducted comprehensively and cohesively. The amendment process should not focus solely on individual provisions but rather adopt a holistic approach, ensuring consistency across laws related to real estate. Additionally, adjustments must be made with input from multiple stakeholders, including businesses, lawyers, and experts, to ensure that the revised regulations are not only reasonable but also highly feasible. Legislative work should be stable, avoiding continuous amendments that could hinder the sustainable development of the real estate market.

Real estate businesses and investors are looking forward to positive changes from the revised draft laws to overcome current difficulties and create a more favorable and transparent business environment.