Great expectations from the Land Law (amended)

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From January 1, 2025, important laws including the Housing Law (amended), the Real Estate Business Law (amended), the Land Law (amended), and the Law on Credit Institutions (amended) will come into effect, expected to unleash large resources for the country's socio -economic development.

Without having to wait until "G hour", in 2024, the positive effects from the above laws are gradually spreading strongly to the real estate market, including businesses participating in the market.

Because in 2023, the real estate, finance, banking and insurance sectors recorded huge fluctuations in business registration data as well as data reflecting the health of businesses.

Compared to the same period, the number of businesses registered for establishment in the fields of finance, banking, insurance and real estate decreased by 17% due to fluctuations in the corporate bond market, in which the most corporate bond issuers were real estate businesses.

Following the domino effect, the real estate market also fell into turmoil, causing the number of newly established businesses in this field to quickly drop by 45%.

In the general recovery of the economy in the last quarters of the year, the confidence of the business community has returned, the number of businesses returning to the market has increased rapidly, but the real estate sector only recorded an increase of 9.1%, much lower than the general increase.

Thousands of real estate businesses have yet to end the difficult days that originated from the volatility called corporate bonds.

In fact, the efforts to remove difficulties by the Government and ministries and branches have helped the market have initial changes, but the recovery progress of the real estate market has not been as expected because legal bottlenecks are still contained in the provisions of the Land Law, as an original law.

In that context, the Land Law (amended) was passed by the National Assembly with changes in 5 major groups of contents, expected to clear up bottlenecks in the real estate market, creating good momentum for businesses.

The contents with changes include land lease; regulations on compensation and support when recovering land; auction of land use rights; bidding for projects using land; principles of determining land prices, land price lists; cases of exemption or reduction of land use fees, land rent, etc.

However, a problem has arisen: how will real estate projects that are in the process of being implemented and whose investment procedures are still incomplete be handled? Currently, the business community is looking forward to specific and detailed instructions for projects that are being implemented during the transition period from the old law to the new law.

To promote the effectiveness of the Land Law (amended), it is very important to promptly issue decrees and circulars to guide the implementation of the mechanisms and policies in the law into life, making land a truly important resource, contributing to the socio-economic development of the country, ensuring national defense and security,...

PV (according to NDO)

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