Businesses sometimes have to ask for up to 38

(CLO) Mr. Nguyen Quoc Hiep, Chairman of the Vietnam Association of Construction Contractors, revealed that in the real estate sector, businesses sometimes have to request up to 38 - 40 seals to be able to carry out projects.

The real estate market witnessed many important milestones.

At the 5th Annual Spring Real Estate Forum held on the morning of February 19, Associate Professor, Dr. Tran Dinh Thien, Member of the Prime Minister's Economic Advisory Group, former Director of the Vietnam Economic Institute, said: 2024 ended with impressive figures for the Vietnamese economy.

GDP increased by 7.09%, the economic scale reached 476.3 billion USD; inflation remained at 3.63%. Exports exceeded 800 billion USD, trade surplus reached 25 billion USD. State budget revenue reached over 2 million billion VND. Foreign investment attraction reached over 38 billion VND.

Associate Professor, Dr. Tran Dinh Thien, Member of the Prime Minister 's Economic Advisory Group, former Director of the Vietnam Economic Institute. (Photo: ST)

Particularly in the real estate sector, in 2024, the market witnessed many important milestones compared to 2023, such as: Apartment prices increased rapidly; The Government made great efforts to put three important laws, the Land Law, the Real Estate Business Law, and the Housing Law, into practice earlier than expected. This is considered a drastic solution to remove the biggest bottleneck of the economy at the present time.

In addition, the real estate market in 2024 recorded notable land auctions in Hanoi. At the same time, the new land price framework in some areas is adjusted towards approaching market prices, affecting input costs of businesses, product selling prices and financial obligations of people when transacting real estate.

In addition, investment in transport infrastructure, especially highways and high-speed railways, has been boosted, opening up development opportunities for many regions, changing investment thinking and leading to a shift in capital flows to emerging markets.

Associate Professor Dr. Tran Dinh Thien said that although the economy recorded positive growth and the real estate market showed signs of recovery, businesses still faced many challenges.

Specifically, in 2024, 233,400 businesses registered to be newly established and returned to operation, an increase of 7.1% over the previous year. However, the number of businesses withdrawing from the market also increased by 14.7%, to 197,900 businesses.

In January 2025 alone, the number of newly established and re-operated enterprises reached 33,400, an increase of 15% over the same period last year, while the number of withdrawn enterprises reached 58,300, an increase of 8.1%.

“The number of dissolved enterprises has increased while the number of newly established enterprises has fluctuated. This is a worrying trend. This phenomenon has been going on since the Covid-19 period until now,” said Mr. Thien.

Challenges being faced

Forecasting the real estate market in 2025, Associate Professor Dr. Tran Dinh Thien said that the market is at a point of recovery with many prospects and challenges.

“I think that when facing new opportunities, the risks that may arise for real estate businesses need to be carefully considered. Perhaps, we still have a lot to discuss to create momentum for the real estate market to grow,” he said.

Meanwhile, Dr. Can Van Luc, an economic expert, said: Currently, the Vietnamese real estate market is showing positive signs of recovery. This is demonstrated by a number of factors.

Overview of the Forum. (Photo: RT)

Firstly, real estate business GDP in 2024 increased by 3.34% compared to 2023 and the construction industry also witnessed significant growth with an increase of 7.78% in 2024.

Second, the supply of new commercial housing will also increase in the period 2021 - 2024. The tourism - resort real estate market still faces many difficulties, but condotels have shown positive signs.

With land, recent transactions have been very positive and recovered much better than in 2021.

The number of industrial parks (IPs) nationwide has increased from 397 in 2021 to 431 IPs. Of which, the number of IPs in operation accounts for 71%, equivalent to 301 IPs. The occupancy rate of IPs also tends to increase.

However, Dr. Can Van Luc revealed some challenges of the real estate market, that is, the profits of listed enterprises decreased by 1.5%; stocks decreased by 1.9% mainly due to a sharp increase in costs of 3.2%.

Notably, the real estate market still has problems. Notably, the current high housing prices stem from many causes.

In addition, land use fee calculation is stuck in many localities and projects. Some localities have not announced the new Land Price List; when announced, the communication work was not really good, leading to mixed reactions; the issuance of documents guiding the new Laws and new Resolutions is still slow.

There are still problems in site clearance, especially the fact that investors have to negotiate with the people for small and medium-sized projects. Land use fee auctions are still inadequate (starting price, capacity of auction participants, sanctions...). The way of building social housing is still inadequate, capital sources for social housing still need attention.

Agreeing with this opinion, Mr. Nguyen Quoc Hiep, Chairman of the Vietnam Association of Construction Contractors, said: The Party and the Government are also making great efforts in institutional reform, especially in the real estate sector. However, many businesses are still facing certain difficulties.

Mr. Nguyen Quoc Hiep, Chairman of the Vietnam Association of Construction Contractors. (Photo: ST)

Mr. Hiep revealed that in the real estate sector, businesses sometimes have to request 38-40 stamps to be able to carry out a project. Or requesting planning adjustments also faces many difficulties.

As of January 2025, about 25 provinces and cities have announced new land price lists. Mr. Hiep said that the content of land price calculation is due to the land price calculation structure, incomplete input factors leading to high land prices. This is the biggest difficulty for businesses, causing many difficulties.

The first is the delay in launching new projects. Currently, many businesses are taking 1-2 years to calculate land prices. The second is the increase in input costs, which can lead to many problems if land prices are not calculated accurately.

"This is what I hope ministries and localities will resolve for businesses. If this can be resolved, the ability to implement real estate projects will be faster," said Mr. Hiep.

Source: https://www.congluan.vn/doanh-nghiep-co-khi-phai-xin-den-38--40-con-dau-de-thuc-hien-du-an-post335149.html