New land and housing laws expected to better allocate resources for economic growth

These laws align with the development goals of a socialist-oriented market economy, aiming for efficient, sustainable land use, and promoting industrialisation, modernisation, fairness, social stability and national defence. (Photo: VNA)

Hanoi - Starting August 1, 2024, three key laws - the 2024 Land Law, the amended Housing Law, and the amended Real Estate Business Law came into effect.

These laws are expected to significantly boost the land, housing and real estate markets by improving legal frameworks, enhancing policy mechanisms, removing obstacles, and better allocating resources for economic growth.

Phan Duc Hieu, a standing member of the National Assembly's Committee for Economic Affairs, told a conference held in Hanoi last week that the enactment of the three laws is timely and necessary.

“The 2024 Land Law addresses five key areas: protecting land users' rights, ensuring market transparency and fairness, improving land use efficiency, updating land finance policies and enhancing State management,” he said.

For acquiring land for production and business, there are three options: the State can reclaim the land, change its use, or negotiate if reclamation is not pursued. The law drafting committee and the Government have reviewed these provisions to prevent overlaps, discrepancies and loopholes, he added.

When the State reclaims land for allocation or lease to businesses, it generally uses auctions or bidding, with limited exceptions for direct land allocation.

For these crucial laws to be effectively implemented, it’s essential that the related Decrees, Circulars and guidance documents are thorough, clear and detailed to prevent overlap, misapplication, and legal loopholes, he added.

Nguyen Thuy Duong, Editor-in-Chief of Business Magazine said the amended Land Law is garnering significant attention from all levels of government, sectors, localities and, especially, the business community. This is because it intersects with 22 other laws and codes, making it a major legislation with a profound impact on economic and social life as well as on the rights of businesses and inpiduals.

The National Assembly's adoption of the amended Land Law, along with the amended Housing Law and Real Estate Business Law, which all took effect on August 1, fulfilling the need for a comprehensive overhaul of land management and use policies. These laws align with the development goals of a socialist-oriented market economy, aiming for efficient, sustainable land use and promoting industrialisation, modernisation, fairness, social stability and national defence, she said.

“The new laws are expected to positively influence the market, driving recovery and providing a solid legal foundation for the Vietnamese real estate sector's healthy and sustainable development,” she added.

To ensure these laws are effectively implemented, it is crucial that the related decrees, circulars, and guiding documents are thorough, clear, and precise to prevent overlap and misuse.

Dao Trung Chinh, Director of the Department of Planning and Land Resources Development under the Ministry of Natural Resources and Environment, said that businesses and real estate investors should focus on land access methods, particularly auctions and bidding.

“When land is allocated or leased without an auction and if the State provides land without charging fees for certain years of basic construction, businesses must be aware that the law requires specific land designation for such cases,” Chinh said.

Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association, said that the 2024 Land Law has been revised to put people first and protecting homebuyers' interests.

“In response to the issue of abandoned resettlement housing that fails to meet people's needs, the new law mandates that resettlement arrangements must be completed before any land recovery decisions are made,” he said.

Additionally, Decree 102/2024/ND-CP sets out detailed regulations for land recovery due to law violations. It states that if a project investor fails to use the land within the extended period, that is up to 24 months, the State will reclaim the land without compensation for the land, any assets on it, or remaining investment costs.

“This regulation aims to end the practice of companies speculating on and hoarding prime commercial and service land to await price increases or changes in land use. It will help better utilise land resources and improve the real estate market,” Dinh added.

Land Law 2024 disseminated to Vietnamese community abroad The Ministry of Foreign Affairs' State Committee for Overseas Vietnamese (SCOV) in coordination with the Hanoi Bar Association organised a conference on June 27 to popularise regulations and laws regarding the Land Law 2024 of Vietnam to overseas Vietnamese (OVs).

New land laws to expedite house-building progress Housing supply is expected to increase significantly following the implementation of new real estate laws in August, creating numerous opportunities for investors and developers.