Decree No. 75/2025/ND-CP: Expectations to lift 'suspended sentence' for hundreds of commercial housing projects

Decree No. 75/2025/ND-CP is also expected to free up land resources, creating a big boost for the real estate market. (Source: HoREA)

There will be at least 343 commercial housing projects of more than 300 enterprises, with a total land area of ​​up to 1,913 hectares in Ho Chi Minh City, having the opportunity to escape the "suspended sentence" of more than 10 years when the Government has just issued Decree No. 75/2025/ND-CP, detailing the implementation of Resolution No. 171/2024/QH15 dated November 30, 2024 of the National Assembly on piloting the implementation of commercial housing projects through agreements on receiving land use rights or having land use rights, effective from the beginning of April this year.

Thus, with the new policy, after the enterprise completes the initial registration procedure with the Department of Natural Resources and Environment of Ho Chi Minh City, the authorities will compile a list of projects and submit it to the City People's Council for approval.

This is an important adjustment step, aiming to clear the bottlenecks that have lasted for the past 10 years. Accordingly, real estate enterprises will not have to participate in auctions for land use rights or bidding to select investors.

Instead, they can directly negotiate to receive land transfers according to the "willing buyer, willing seller" mechanism. As a result, businesses will have land for projects, people will be compensated appropriately, the State will not have to reclaim land, but still collect taxes and fees, and the real estate market will have more supply after many years of congestion.

More importantly, the new regulation also helps reduce land waste in the context of many valuable lands that have been abandoned for decades.

In fact, getting approval for investment policy is one of the first steps in the journey of preparing legal documents for the operation of a real estate project. If the enterprise fails to pass this step, it will not be able to carry out the next steps, which means the project will be suspended, even though the investor has spent a large amount of capital. This is also one of the reasons why the Ho Chi Minh City market is lacking new housing projects.

Back in the past, when there was no new policy, to implement a project, businesses had to spend money to buy land from the people, then had to go through procedures to allocate or lease land from the government. This process entailed many procedural steps such as requesting investment policies, bidding or auctioning land use rights, leading to a significant extension of project preparation time. However, even if businesses had completed all of the above steps, if the project did not have a single square meter of residential land, it would fall into a deadlock.

Since 2014, when the Housing Law stipulated that 100% of the land must be residential to be able to carry out a project, many real estate projects in Ho Chi Minh City were immediately stalled, because the rate of projects implemented on 100% of residential land only accounted for 1%; projects developed on mixed land accounted for the largest rate, about 94%.

“The new pilot mechanism has filled the legal gap on land, fully supplementing the methods of accessing and using land to implement commercial housing projects that the 2024 Land Law has not yet regulated,” said Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA) after many years of persistently working with the authorities to research and propose this pilot policy.

Thus, with 343 projects launched, the housing market in Ho Chi Minh City will witness at least 216,000 new houses appearing in the next 3-10 years. Assuming an average investment capital of 1,000 billion VND/ha, the total investment value of up to millions of billions of VND will have a spillover effect on more than 35 other economic sectors.

Broadly speaking, there may be about 900 commercial housing projects nationwide registered to implement the “pilot project” with a land use scale of about 5,000 hectares, the real estate market will have about 650,000 more apartments in the next 3-10 years. At that time, the spillover effect will be 3 times larger than the scale of projects in Ho Chi Minh City and can attract an investment capital of about 5 million billion VND.

It should also be added that not all projects can be implemented under the above pilot mechanism. The reason is that according to regulations, the total residential land area in pilot projects must not exceed 30% of the additional residential land area during the planning period according to the provincial planning for the period 2021 - 2030, so enterprises must register for implementation and the list of pilot land must be approved by the Provincial People's Council. The problem is that there needs to be a monitoring mechanism to avoid taking advantage of policies through "running" projects, or in the form of asking - giving. Registration and approval procedures also need to ensure publicity, transparency, and take into account the order of priority.

The policy of expanding land for commercial housing is the right direction, helping to open up hundreds of real estate projects, creating conditions for the development of the housing market. If implemented well, this will be a big boost for the real estate market, contributing to stabilizing housing prices, while improving people's access to housing.

Source: https://baoquocte.vn/nghi-dinh-so-752025nd-cp-ky-vong-thao-an-tréo-cho-hang-tram-du-an-nha-o-thuong-mai-311016.html