Vietnam government getting in on the local property market

The Vietnamese government has solicited reports on the property market from different regions around the country in an effort to better control the growth of this particular sector of the marketplace. At the same time, they are set to take advantage of the government’s growth by auctioning off the rights to various plots of land in 21 separate auctions.

With the property industry steadily growing in Vietnam and more property investors looking for opportunities within the small south east Asian nation, it looks as though the government has decided to take a more proactive and pertinent role in the development of this particular business sector. Two recent moves by the government of Vietnam have shown this renewed focus.

The construction ministry recently ordered reports from different regional governments throughout Vietnam, specifically dealing with management and development of property. This includes transactions and current standings of both undeveloped land and property.

At the same time the construction ministry is asking for this report, the Natural Resources Environment and Housing Department is preparing to auction land-use rights in around the city of Hanoi. Currently scheduled are 21 auctions and the city government has already advanced nearly 100 billion VND in order to implement the projects.

These two efforts are serving to reinforce any confidence that domestic and foreign investors may have regarding the coming year in Vietnam. Although the government is gathering a considerable amount of market research data, it is in line with data gathered by governments in many other nations. Coupled with the government's actions towards releasing land for development is not spreading any worries among investors.

However, it does appear as though the government is looking to reduce the volume of speculation and illegal transactions currently occurring. In a letter from the construction ministry to the regional governments, an emphasis was placed on the government policy of reclaiming state land which was allocated but not used or developed upon.

Pham Sy Liem, Director of the Urban Research and Infrastructure Development Centre stated, "Detailed statistics will help authorities make effective policies. They have yet to be given sufficient importance. The latest management measures have been a reaction to developments in the property market and not very effective. A comprehensive new view is needed so that authorities can implement systematic long-term measures.”