Ministry of Construction mandated to provide comprehensive report on real estate market performance to Prime Minister in November
The Government of Vietnam has officially issued Resolution 353, following the regular cabinet meeting for October 2026, tasking the Ministry of Construction with a critical oversight role regarding the nation’s real estate sector. Prime Minister Le Minh Hung has directed the Ministry to compile a rigorous and detailed assessment of the property market, specifically focusing on supply dynamics, transaction volumes, pricing trends, and inventory levels across various market segments and geographical regions. This directive is part of a broader governmental effort to maintain macroeconomic stability and prevent the real estate sector from posing systemic risks to the national banking and financial systems.
Context and Regulatory Mandate
The real estate sector remains a pillar of the Vietnamese economy, yet it has faced significant structural challenges in recent years, including liquidity constraints, legal bottlenecks, and a mismatch between supply and demand. Resolution 353 serves as an instrument of fiscal and administrative control, requiring the Ministry of Construction to act as the primary coordinator in collaboration with local authorities and relevant agencies.
The mandate requires more than a mere statistical overview. The Ministry is tasked with identifying potential risks and formulating actionable scenarios and contingency plans to mitigate volatility. By doing so, the government aims to ensure that any fluctuations in the property market do not spill over into the broader financial sector, particularly given the reliance of many banks on real estate collateral.
Focus on Social Housing and Market Accessibility
A significant portion of the Prime Minister’s directive addresses the persistent deficit in social housing and rental properties. The government has instructed the Ministry of Construction to conduct a deep-dive review of supply-demand equilibrium at the provincial level. This data must be reported monthly to the Politburo, signaling the high political priority assigned to housing affordability.
The Ministry is further obligated to suggest adjustments to annual development plans to align them with real-world requirements. The objective is to ensure that residential development, particularly for low-income earners and workers, is not merely a policy ambition but a tangible outcome. This includes streamlining administrative procedures to unlock projects that have been stalled due to regulatory complexities.
Infrastructure Integration: The Long Thanh and Gia Binh Projects
The scope of the Ministry’s new responsibilities extends beyond housing to include critical national infrastructure that drives property valuation and urban development. Prime Minister Le Minh Hung has specifically highlighted the need for progress on the first phase of Long Thanh International Airport, aiming for a 2026 launch.
Furthermore, the Ministry must accelerate the implementation of the Gia Binh International Airport project and associated infrastructure required for the 2027 APEC Summit. These projects are not only vital for national logistics but also serve as catalysts for regional economic growth. The government has emphasized the need for a comprehensive connectivity plan linking the new airport hubs with the center of Hanoi and surrounding provinces, viewing these transport arteries as essential for future urban planning and market development.
Strategic Infrastructure and Transportation Milestones
In addition to aviation infrastructure, the Ministry of Construction is tasked with finalizing the national strategy for logistics services through 2035, with a vision toward 2050. This involves the active management and completion of investment procedures for high-profile rail projects, including:
- The Lao Cai – Hanoi – Hai Phong rail link.
- The North-South high-speed railway projects.
- The planning of the Dong Dang – Hanoi railway line.
These infrastructure projects are essential for diversifying the national transportation network and reducing reliance on road freight. By standardizing rail specifications and fostering a domestic railway industry, the government expects to lower long-term logistics costs, which in turn will support the competitiveness of the manufacturing and real estate sectors.
Addressing Project Bottlenecks
A recurring issue in the Vietnamese real estate and infrastructure landscape is the delay in site clearance and capital disbursement. The government’s directive is clear: the Ministry of Construction must collaborate with local governments to resolve obstacles that hinder project timelines.
Project owners and management boards are now required to submit detailed, granular construction schedules. The government has warned of strict accountability for projects with low disbursement rates. This directive serves as a wake-up call for state-funded projects, emphasizing that fiscal efficiency and the meeting of deadlines are non-negotiable in the current economic climate.
Banking Sector Supervision and Credit Policies
The State Bank of Vietnam (SBV) has been instructed to maintain rigorous oversight of real estate credit. While credit is essential for market health, the government is cautious about speculative bubbles and the over-concentration of risk.
Key directives for the banking sector include:
- Interest Rate Management: Commercial banks are encouraged to continue reducing lending rates, particularly for priority sectors such as exports, small and medium-sized enterprises (SMEs), and social housing.
- Strict Supervision: The SBV will increase inspections of credit institutions to ensure compliance with interest rate policies. Any anti-competitive behavior or failure to follow directives will face strict administrative penalties.
- The 120 Trillion VND Credit Package: The government continues to emphasize the 120 trillion VND credit program dedicated to social housing, housing for workers, and home-buying support for citizens under the age of 35. The goal is to remove administrative hurdles that prevent end-users from accessing these funds.
- Risk Management: The SBV is tasked with closely monitoring the debt-to-equity ratios of major real estate firms, particularly those currently struggling with high leverage. The focus is on debt restructuring and preventing the accumulation of new non-performing loans (NPLs).
Combating Systemic Malpractice
A critical component of the government’s recent directive is the crackdown on "back-door" ownership, cross-ownership, and manipulation within the banking sector. The government has explicitly demanded an end to practices where corporations use shell companies or shadow ownership structures to influence bank lending decisions for their own real estate projects.
This move is part of a broader anti-corruption and transparency drive aimed at strengthening the governance of financial institutions. By enforcing stricter "know your customer" (KYC) and ultimate beneficial owner (UBO) rules, the government aims to insulate the banking system from the volatility of individual property developers.
Implications and Future Outlook
The multifaceted directive issued under Resolution 353 reflects a sophisticated approach to managing the real estate market. Rather than implementing blanket policies, the government is opting for a surgical approach: promoting necessary infrastructure and social housing while simultaneously tightening financial oversight on speculative activities.
For investors and developers, the implications are twofold. First, the regulatory environment for large-scale, high-impact infrastructure and social housing projects is being prioritized, which may provide new opportunities for firms aligned with government development goals. Second, the era of easy, unchecked credit for speculative real estate ventures is effectively over. The banking sector’s heightened focus on risk and compliance means that companies with poor financial health or opaque ownership structures will find it increasingly difficult to secure financing.
As the Ministry of Construction prepares its comprehensive report for the Prime Minister this November, the industry expects a clearer roadmap for the next 12 to 24 months. If the government succeeds in clearing legal bottlenecks while maintaining financial stability, the real estate market may shift toward a more sustainable, end-user-driven model. However, the success of these measures will depend heavily on the coordination between central ministries and local provincial authorities, as well as the ability of the banking sector to balance the need for risk control with the necessity of supporting economic growth.
In summary, the government’s latest intervention is a call for maturity in the real estate sector. By anchoring property development to national infrastructure goals and prioritizing social housing, the state is attempting to redefine the sector’s role from a source of volatile financial risk to a foundation for long-term urban and economic development.
Related posts:
