Vietnam Proposes Shifting Real Estate Project Transfer Authority from PM to Provincial Governments

The Vietnamese government has proposed a bill to transfer the authority for the transfer of all or part of real estate projects from the Prime Minister to provincial People's Committees (UBND). Under current law, the Prime Minister decides on transfers of projects for which the government has approved the investment policy, while provincial UBNDs can only decide on projects they have approved. Minister of Construction Tran Hong Minh stated that the draft Law on Real Estate Business (amended) comprises 10 chapters and 62 articles. Among these, the authority to decide on the transfer of real estate projects is proposed to be entirely vested in provincial UBNDs, shifting it from the central government. This proposal is expected to streamline administrative procedures and accelerate decision-making at the local level, aligning with the government's broader efforts to decentralize power and boost economic activity. However, Phan Van Mai, Chairman of the Economic and Financial Committee, requested clarification on cases where projects approved by the Prime Minister would be delegated to provincial UBNDs for transfer decisions. Mai pointed out that such projects might have inter-provincial characteristics, involve national defense or security elements, significant financial obligations, or unique mechanisms requiring central government input. The draft law also plans to simplify six categories of business conditions, including those for real estate business organizations and individuals, and conditions for ready-built or future real estate and construction works to be put into business. Furthermore, conditions for real estate brokerage services, such as naming, business registration, and training certificates for real estate exchanges, may be abolished. Approximately one-third of administrative procedures related to the registration of information and data on housing and the real estate market, as well as the issuance and re-issuance of operating licenses for real estate exchanges, are also slated for reduction. Regarding payments and guarantees in the sale and lease of future real estate, the draft law stipulates that sellers cannot collect more than 95% of the contract value before buyers receive their red book (ownership certificate), similar to current regulations. However, it is proposed that the remaining 5% of the contract value be deposited into a blocked account at a bank or secured through other agreed-upon methods.