Vietnam's amended land law will boost property market: Lawmaker

National Assembly deputies will discuss the amended Land Law, the Housing Law, and the Real Estate Business Law during the second half of the seventh session of the National Assembly from June 17 to 28. The three laws are expected to take effect on August 1, 2024, five months earlier than the original target date of January 2025.

Deputy Pham Van Hoa, member of the NA Legal Committee, speaks to Tien Phong newspaper about the three laws and outlines the impact of the laws on the real estate sector.

National Assembly deputy Pham Van Hoa, member of the NA Law Committee.

In your opinion, how likely is it that the three new laws will go into effect this August?

At the moment, the National Assembly has only set the schedule and the main issues to be discussed during the second half of the 7th session. I think it's likely that the national legislators will approve these laws so that they can be enacted this August.

Several deputies were concerned that the laws would come into effect too soon, as this would put pressure on the formulation of related sub-laws. For example, the amended land law has 16 related decrees, and the housing law has three related decrees. When the new laws come into force, the existing laws and their subordinate legal documents will become null and void. It is necessary to elaborate sub-laws, which will guide the newly adopted laws. 

The government has recently finished drafting some decrees for the new laws, so I think it's possible and necessary to enact them in August. If these three laws are enforced at the same time, it will be more effective. It's now up to the ministries and local authorities to finalize the subordinate policies soon so that the laws will have an immediate effect.

What will be the impact of the three laws on the real estate sector?

I believe that the three laws will have an immediate effect on the real estate market, thus meeting the expectations of government agencies, enterprises, and people. The voters hope that the laws will help remove the bottlenecks in the operation of the real estate sector. For example, a landowner will be able to obtain a certificate of land use rights even if the land is involved in legal disputes. He only needs a certificate from the local authorities that the land is not under dispute.

Lots waiting to get developed in Hanoi. Photo: Pham Hung/The Hanoi Times

In addition, the new land law will speed up land clearance as land compensation will now be based on the market price, which varies depending on the purpose of the development project, whether it will be a community square or a commercial building. The new law will also make it easier for overseas Vietnamese to buy houses in the country. So I think the laws will have a lot of good impacts on Vietnam's real estate sector.

What other opinions do you have about the new laws?

The supply of social housing will change. The new laws will allow the Vietnam General Confederation of Labor to join and build low-cost housing for workers in the industrial parks. The laws will also require each province to set aside land for low-income housing. Of course, the improvement would not be immediate because construction takes time, but by 2025 there will be positive movements in this segment. I think it's possible to achieve the goal of building one million affordable homes.

Like others, I'm concerned that drafters would formulate subordinate policies in their own selfish interests. To prevent this, we need to make top legislators more responsible. We must make sure that the National Assembly and its committees play the key role in ensuring that laws and subordinate regulations are accurate and well-written, so as to prevent individuals from obtaining unjust benefits.

Thanks for your time!