KHI CHÍNH QUYỀN THAY ĐỔI TƯ DUY DỰ ÁN BẤT ĐỘNG SẢN ĐƯỢC THAY ĐỔI SỐ PHẬN / WHEN THE GOVERNMENT CHANG

Reviving dormant projects: Awakening resources and reigniting market confidence

After many years of stagnation, numerous real estate projects across the country are now being strongly “revived” thanks to changes in mindset and working approaches by local authorities. From Hanoi, Ho Chi Minh City, and Da Nang to Khanh Hoa, Lam Dong, and many other provinces, regulatory agencies have proactively reviewed and removed legal obstacles, set up specialized task forces, and directly handled each project. This transformation not only helps businesses restart their projects but also unlocks resources that have long been “buried” in society, paving the way for a sustainable recovery cycle in the real estate market while strengthening the sector’s position as a key driver of economic growth.

01. A SERIES OF REAL ESTATE PROJECTS “REVIVED”

The developer of the Lotus Residences project in Ho Chi Minh City recently shared “incredibly good news” with hundreds of customers — the company received a notice from the City confirming the removal of legal obstacles, including the extension of its investment approval and the land-use fee payment notice for the entire project, totaling more than VND 500 billion.

The company’s executives said they had waited 7 years and 7 months to receive this notice. Throughout that period, the inability to determine the land-use fees prevented the developer from fulfilling its financial obligations. As a result, hundreds of customers in the project were unable to build or receive their property ownership certificates, and key components such as apartment buildings, schools, and shopping centers were also stalled…The project was left “on ice” due to procedural obstacles, and customers are the first to be affected, but businesses themselves are also “victims” of issues that do not stem from them.

As soon as the financial obligations were finalized, the developer affirmed that it would promptly complete the payment and restart the entire project. The goal is to finish construction of the townhouse sections and internal infrastructure to welcome residents by the first quarter of 2026, and subsequently hand over the pink books by the fourth quarter of the same year.

In addition to Lotus Residences, the Ho Chi Minh City Department of Natural Resources and Environment has also resolved legal obstacles at several other key projects. The Department has submitted the land valuation dossier for the re-assessment of land prices for the 30.1-hectare Nam Rach Chiec project (commercially known as Lakeview City). Subsequently, the Ho Chi Minh City Land Valuation Council convened to review the assessment and finalize the proposed land-price plan.

Not long before that, the same agency had also submitted the land valuation dossier for the re-determination of land prices for the New City Thu Thiem project. The project was converted from resettlement housing to commercial housing within the 38-hectare Thu Thiem resettlement area. Thuan Viet Company was among the contractors that built 1,330 resettlement apartments for the project. When the demand for resettlement housing at the site diminished, Thuan Viet proposed that the Ho Chi Minh City People’s Committee offset construction costs with the resettlement apartments and convert them into commercial units. However, after a prolonged waiting period, the project has only now been formally reviewed and resolved.

Lotus Residences, Lakeview City, and New City Thu Thiem are just a few among the many long-delayed projects that authorities at various levels have worked to resolve in recent months. After nearly two years of severe downturn in the real estate market (late 2022–2024), which significantly affected multiple sectors, the market is gradually being re-recognized for its true role — one of the key pillars of the national economy. The Government considers the development of a healthy, stable, and sustainable real estate market essential for driving economic growth. Accordingly, removing legal obstacles, supporting the business community, and unlocking land-related resources have been identified as top priorities in the Government’s administrative agenda.

Through a series of consistent directives, the Government has introduced multiple solutions and pilot mechanisms, while instructing ministries, sectors, and local authorities to take decisive and proactive action. As a result, numerous legal “bottlenecks” have been swiftly removed, helping restore confidence among businesses and investors.

According to the latest report from the Government Inspectorate on the implementation of the Politburo’s Conclusion No. 77-KL/TW and the National Assembly’s Resolution No. 170/2024/QH15 regarding the removal of obstacles for projects in Hanoi, Ho Chi Minh City, Da Nang, Khanh Hoa, and Tay Ninh, a total of 2,161 backlogged projects have been reviewed and addressed by local authorities.

Da Nang is the leading locality, having resolved 1,678 projects with a total investment of more than VND 132.338 trillion and over 3,643 hectares of land, achieving a completion rate of 82.45%. This is a significant outcome for a city that previously drew intense attention due to land allocation, auctions, and project transfer issues during the 2012–2019 period.

Khanh Hoa ranks second, having resolved 55 out of 76 projects, comprising a total of 16,700 apartments and villas and achieving a completion rate of 72.3%. These projects represent more than VND 49.369 trillion in total investment and cover approximately 2,414.45 hectares, contributing VND 356.7 billion to the state budget.

In Hanoi, the city has resolved 24 out of 38 backlogged projects (a completion rate of 63.15%), with a total investment capital of approximately VND 26.959 trillion and more than 28 hectares of land. Meanwhile, Ho Chi Minh City has addressed 2 out of 11 projects (18.18%), involving around VND 11.770 trillion in total investment and over 15 hectares of land. The city is continuing to process land valuation dossiers for several other key projects, prioritizing the completion of procedures to auction land plots in Thu Thiem and accelerating the collection of land-use fees. These efforts are expected to bring in more than VND 23 trillion, creating momentum for the recovery of the real estate market in the coming period.

In Da Nang, to ensure continued progress in handling the remaining projects, the city’s People’s Committee recently established eight task forces, each headed by a Vice Chairman of the Committee. These teams are assigned to conduct on-site inspections at the responsible agencies and localities to assess the current situation, identify specific obstacles and the corresponding authority for resolution, and expedite disbursement to prevent any further projects from falling into stagnation.

Not only major urban centers but many other provinces across the country are also taking strong actions to resolve difficulties facing real estate projects. In Lam Dong, since mid-November 2025, the province has established an inter-agency task force to “untangle” 150 long-stalled urban and resort projects. These projects are located in the Lam Dong – Binh Thuan – Dak Nong area prior to the administrative boundary adjustments, and are entangled in a series of complex issues, including titanium and national mineral reserve zoning, unfinished land allocation and leasing procedures, incomplete compensation and site clearance, and investment dossiers no longer aligned with current regulations.

Several large-scale projects are included in this group, such as the 122-hectare Hamubay Phan Thiet project developed by Truong Phuc Hai; the 227-hectare project in Tan Thanh by the Tan A – Cuong Thinh Thi joint venture; the Rung Duong Resort in La Gan Bay; the Bien Ho – Son My complex developed by Trung Thuy Group; along with a number of eco-tourism projects in Duc Trong, Bao Loc, and Lac Duong.

It can be said that the real estate market has never witnessed as many project “revivals” as it does today. From major projects in large urban areas to unfinished developments in localities, many construction works that had been stalled for years have now shown clear progress. Evidently, with decisive direction from the Central Government and strong engagement from local authorities—who have proactively developed action plans and established dedicated task forces to resolve each obstacle—the real estate market is being revitalized and is entering a new recovery cycle, built on a more coherent and transparent legal foundation. This not only helps unlock resources within society but also restores confidence among businesses and investors nationwide, thereby encouraging capital to flow back into the market and enabling it to develop in line with its vital role in the economy.

0.2. GOVERNMENT IN STEP, BUSINESSES ACCELERATE

It is not only recently that the Central Government has directed efforts to resolve difficulties in the real estate market and “revive” long-stalled projects. In fact, many guidelines, resolutions, and policies had been issued earlier - some even very clearly. However, the implementation remained slow.

As a result, many projects were left “suspended” year after year. Land lay abandoned, resources were wasted, urban landscapes deteriorated, investment attractiveness declined, and local development opportunities were constrained. Not only did businesses suffer from “frozen capital” and people grow weary from waiting, but investor confidence in the business environment was also eroded. If prolonged, this situation further led to a persistent shortage of real estate supply, affecting the entire market for many consecutive years.

From the perspective of a lawyer with many years of experience in the real estate sector, attorney Lê Cao, Managing Partner of FDVN Law Firm, also believes that the primary cause behind the widespread occurrence of suspended projects stems from overlapping, inconsistent, and inadequate legal frameworks governing real estate investment management. Regulations related to land resources, construction, and investment for implementing a real estate project are scattered across various laws—such as the Land Law, the Housing Law, the Construction Law, the Investment Law, the Bidding Law, and the Planning Law—making the application process highly complex.

According to Lawyer Cao, the capacity for managing and administering investment activities is also a contributing factor to the current situation. Many regulatory agencies have not yet mastered the complex professional knowledge related to real estate project investment, leading to misunderstandings, incorrect application of regulations, or incomplete handling, which in turn causes widespread bottlenecks in the project development process.

However, he also emphasized that since the two-tier government model was implemented, the legal framework has demonstrated clearer and stronger decentralization and delegation of authority. This has enabled each administrative level to understand what they must do, what they are allowed to do, and what they are responsible for. Effective implementation of this mechanism in the current period has enhanced the proactiveness of local authorities, making administrative governance more flexible and efficient.

“For a long time, despite the existence of many policies on decentralization and delegation of authority, the lack of thorough implementation merely shifted management responsibilities back and forth. As a result, businesses found themselves caught in the middle of procedural deadlocks.

Today, when we implement decentralization correctly, effectively, and decisively, citizens and businesses will directly benefit from an administration that is “accurate – swift – and efficient,” attorney Cao stated.

Dr. Huỳnh Thanh Điền, a lecturer at Nguyễn Tất Thành University (Ho Chi Minh City), shares the same view, stating that after successfully organizing the two-tier government model and placing people in the right positions, operations have become more stable thanks to clearer delineation of decentralization and authority. When authority is clearly assigned, local governments become more proactive in handling tasks, no longer adopting a “waiting for instructions” mindset, hesitating, or shifting responsibilities. This shortens the procedural timeline for businesses. This change is highly significant, helping to minimize the long-standing delays and passing of responsibility that have persisted for many years.

The strong engagement of local authorities in resolving difficulties for stalled real estate projects stems not only from a clear decentralization and delegation of authority but also from the high economic growth targets set for this new phase of development.

TS. Huỳnh Thanh Điền emphasized that 2025 is a pivotal year marking the beginning of a new development phase, a time when the country has set many major goals. These ambitious targets have fostered a spirit of competition, effort, and determination, spreading from the Central Government to local authorities, and from regulatory agencies to businesses.

Vietnam has set a target of achieving 10% growth from 2026 and reaching a per-capita GDP of 8,500 USD by 2030. This requires localities to answer the question: “What will drive this growth?” And the first answer is to boost investment, implement major projects, and unblock those that are currently stalled.

Dr. Huỳnh Thanh Điền, Lecturer at Nguyễn Tất Thành University (Ho Chi Minh City)

Lawyer Lê Cao also stated that land resources and financial resources embedded in real estate projects that are currently “frozen” due to legal obstacles are existing resources that only need to be unlocked in order to be activated. Once these issues are resolved, they can immediately contribute to market recovery and economic growth. While other sectors may require long investment periods to generate value, resolving the obstacles in real estate projects can quickly awaken dormant resources.

According to him, the thousands of frozen projects represent a vast pool of assets; once they are unblocked, not only will the real estate market recover, but the finance, securities, construction, and investment sectors will also start to move, creating greater dynamism for the entire economy.

In that context, the prevailing mindset now leaves virtually no room for “suspended planning” or “stalled projects.” Issues that were once seen as the market’s “chronic illnesses” are gradually being pushed back as regulatory agencies demonstrate consistency in their actions and a firm commitment to resolving long-standing problems to the very end. As more localities change their working methods—becoming more proactive and responsible—businesses will inevitably notice a clear improvement in the speed of processing documents and administrative procedures. This genuine support from local authorities is therefore a crucial factor that creates real momentum for businesses, especially those implementing major projects or facing prolonged legal obstacles.

Lawyer Cao emphasized that no matter how complete policies, laws, or directives may be, they are meaningless without actual implementation. He noted that if authorities merely offer superficial slogans without real involvement, no results can be achieved. Today, as local governments are given real authority and real responsibility, their ability to make breakthroughs depends entirely on their own actions.

When local authorities demonstrate responsibility through decisive action, effective coordination among specialized agencies, and a consistent commitment to proactivity, objectivity, and integrity in handling affairs, businesses can truly receive the support and facilitation they need to make breakthroughs,” Lawyer Cao said.