New laws look to reign in rampant spending in addition to monitoring foreign investment.
According to the official website of the Business Association of Ho Chi Minh City, the legal capital of real estate businesses should not be less than VND20 billion ($0.9 million) compared to the previous minimum of VND6 billion ($0.2 million). Therefore, real estate vendors under this limit must implement the necessary actions to increase charter capital for legal compliance purposes.
Instead of a combined certification of investment and business, the new law also states that new foreign investors must register with authorised local agencies in Vietnam to get certification before receiving a license of business registration approved by the local registration office.
However, foreign enterprises which already had investment license before July 1, 2015 will be entitled to continue the implementation of their projects.
Speaking at the conference "Forecasting Vietnam's real estate market in 2015", Dr. Dang Hung Vo, former Deputy Minister of Natural Resources, said “the new requirement for real estate businesses is to ensure compliance with urban development and remedy the situation of spontaneous and rampant investment.” He also stated that the specific provisions on registration of real estate organisations and individuals would increase professionalism in the real estate business and reduce intermediate costs.