Policy reforms to propel Vietnam’s real estate market

Policy reforms to propel Vietnam’s real estate market

Vietnam’s real estate market is expected to navigate challenges and enter into a new cycle of development in 2026, according to a top economist.

At VIR’s real estate seminar in Ho Chi Minh City on May 12, Can Van Luc, chief economist at BIDV and member of the National Financial and Monetary Policy Advisory Council, said construction and real estate market were the key pillars of Vietnam's economy.

In 2025, real estate accounted for around 3.5 per cent of GDP while construction contributed 6.13 per cent. Compared with many regional peers, these sectors still have significant room to expand.

In 2026, Vietnam is expected to enter a new era of growth with lofty growth targets despite a slowdown in the global economy. Specifically, Global GDP growth is projected to slow to 3.1 per cent in 2026 from 3.4 per cent in 2025.

Against this backdrop, Vietnam’s GDP growth is forecast to reach 9 per cent this year after posting 8.02 per cent growth last year. This is an important foundation for Vietnam to achieve an average GDP growth target of at least 10 per cent per year over 2026 – 2030.

Indicators such as inflation, interest rates, exchange rates, and bad debt remain under control. Inflation, measured by the consumer price index, is expected to average 4.3 per cent in 2026 before moderating to 4.1 per cent in 2027.

Meanwhile, major central banks, including the Federal Reserve and the European Central Bank, are showing signs of easing interest rates, which could create positive pressure on domestic interest rates.

Luc said, “The government and the National Assembly have issued a series of special resolutions to unlock resources for the property market. Resolution 170/2024/QH15 introduced special mechanisms to resolve obstacles for ventures in Ho Chi Minh City, Danang and Khanh Hoa. Resolution 265/2025/QH15 expanded the application of these mechanisms nationwide. Resolution 29/2026/QH16 addresses land violations before the 2024 Land Law took effect, helping revive idle ventures."

In addition, the government is also directing to remove obstacles for 3,338 projects with a combined investment capital of nearly VND3.35 quadrillion ($129 billion).

A range of policies has been introduced to encourage social housing. Decree No.136/2026/ND-CP stipulates raising the income ceiling for individuals buying social housing to VND25 million ($962) per month. Previously, Decree No.261/2025/ND-CP increased the income cap from VND15 million to VND20 million per month for individuals and VND40 million per month for married couples.

In addition, interest rates for social housing loans at Vietnam Bank for Social Policies have decreased to 5.4 per cent per year. Decree No.302/2025/ND-CP also provides detailed regulations for the establishment of a National Housing Fund, aimed at ensuring long-term financing for rental housing and the sustainable development of social housing.

A series of important laws are also implemented. The amended Law on Investment 2025 helps reduce procedures for foreign investors and ease conditions for project transfers. The amended Law on Construction 2025 will streamline appraisal procedures, expand the subjects exempted from construction permits, and boost digital transformation through a construction information model.

In the near future, the establishment of a state-managed real estate and land use rights transaction centre will help increase transparency.

VIR