Resolution No. 29/2026/QH16 – “policy boost” for real estate market in new development phase

Beyond addressing prolonged shortcomings from the past, the Resolution is regarded as a “policy boost” capable of unlocking resources, restoring market confidence, and laying the foundation for the sustainable development of the real estate market in the coming period.

Previously, on April 24, 2026, the National Assembly adopted Resolution No. 29/2026/QH16 on special mechanisms and policies to address land law violations committed by organisations and individuals before the 2024 Land Law took effect, while also removing obstacles facing delayed and prolonged projects.

One of the key premises behind the Resolution is the reality that thousands of real estate projects nationwide have become “stuck” due to legal bottlenecks beyond the settlement authority of localities and the Government, requiring a National Assembly resolution for comprehensive settlement. Specifically, according to the Ministry of Agriculture and Environment, as of March 30, 2025, the country had 4,489 projects and land funds facing difficulties and legal obstacles, covering a total area of 198,428.1 hectares with total investment capital amounting to over 3.35 quadrillion VND (over 127 billion USD), equivalent to nearly three times the total public investment capital planned for 2026 estimated at 1.1 quadrillion VND (41.8 billion USD). If these resources are unlocked, they could become a major driver for GDP growth, particularly as the Government targets high economic growth in the coming period.

Resolution No. 29/2026/QH16 approaches the issue in a more practical and flexible manner by allowing the handling of land law violations occurring before the 2024 Land Law took effect, while simultaneously removing obstacles facing long-delayed projects. Notably, the Resolution does not focus solely on accountability but also permits the parallel implementation of solutions to bring projects back into operation. VARS IRE considers this a breakthrough shift in policy thinking, from “freezing projects for handling” to “handling issues in order to resume operations,” thereby opening the possibility of reactivating a substantial volume of stalled supply and blocked capital flows.

The impacts of Resolution No. 29/2026/QH16 on the real estate market are expected to unfold across multiple dimensions. First, resolving legal obstacles for delayed projects will help boost market supply. The projects subject to settlement include cases involving violations in land allocation, investor selection, land-use purpose issues, as well as projects granted certificates in breach of regulations. Once these projects are “unblocked,” the market will not only gain additional supply but also experience greater competition, thereby easing localised price pressures.

Move to “unlock” market sentiment

In particular, Resolution No. 29/2026/QH16 carries important significance in removing legal bottlenecks for the tourism and resort real estate segment, which has faced prolonged difficulties due to the lack of a clear legal corridor. The introduction of mechanisms to handle cases in which certificates were granted inconsistently with regulations is considered an initial step towards “unlocking” market sentiment.

According to VARS IRE, although this is not yet a comprehensive solution, the move could contribute to restoring investor confidence — regarded as the key factor for this segment’s recovery in the next growth cycle.

From another perspective, Resolution No. 29/2026/QH16 is also expected to generate spillover effects for the financial and banking system. In recent years, the suspension of numerous projects has caused capital flows to stagnate, weakened enterprises’ payment capacity, and increased bad debt pressure. Once projects are resolved and restarted, capital flows are expected to gradually recover, helping enterprises improve their financial capacity while reducing pressure on the banking system.

However, the effectiveness of the Resolution’s implementation will largely depend on the role of local authorities, especially provincial-level People’s Committees, which have been directly empowered to review, classify, and handle projects. In practice, most current real estate market bottlenecks have arisen and persisted at the local level. Therefore, while decentralisation is necessary, it also places higher demands on the capability, proactiveness, and sense of responsibility of the implementation apparatus.

According to VARS IRE, this is not merely an important stage but, in fact, the “key factor” determining the effectiveness of Resolution No. 29/2026/QH16. If localities demonstrate proactiveness, determination, and flexibility in applying solutions suited to practical conditions, the process of removing obstacles can be accelerated, thereby creating broad and positive spillover effects. Conversely, if hesitation, avoidance of responsibility, lack of specific guidance, or insufficient coordination among relevant agencies persist, the Resolution may fail to achieve the expected outcomes.

From a strategic perspective, Resolution No. 29/2026/QH16 is not only aimed at addressing unresolved issues from the previous period but also contributes to shaping a new development cycle for the real estate market. As Viet Nam pursues the goal of high and sustainable economic growth, unlocking land resources — one of the economy’s most important input factors — is regarded as a foundational condition. If implemented effectively, the Resolution could help reactivate the real estate market’s value chain, thereby promoting related sectors such as construction, building materials production, and finance, while generating positive spillover effects on macroeconomic growth.

Ensuring the Resolution effectively and sustainably reactivates the real estate value chain

For the Resolution to be effectively translated into practice, comprehensive and concrete solutions need to be designed and implemented. First, the prompt issuance of guiding documents, particularly relevant decrees and circulars, is necessary to ensure unified understanding and application, thereby limiting fragmented implementation among localities. In parallel, specialised task forces should be established at the local level to review, classify, and handle delayed projects, helping shorten settlement time and minimise responsibility avoidance or delays.

Alongside these measures, improving land valuation mechanisms during the legalisation process for projects is of particular importance. This sensitive issue requires transparent, consistent, and methodologically grounded solutions to ensure both the prevention of state budget losses and the avoidance of excessive financial burdens on enterprises.

At the same time, sufficiently clear institutional mechanisms should be developed to protect officials during implementation, especially those who proactively take responsibility, thereby helping reduce the risk-averse mentality still existing within the administrative apparatus.

In addition, standardising the data system and handling procedures nationwide is also an important requirement. This would not only enhance transparency and supervisory capacity but also help minimise risks of negative practices during implementation, thereby strengthening market confidence and the trust of relevant stakeholders.

Although highly appreciated, Resolution No. 29/2026/QH16 also requires strict control mechanisms to prevent abuse. Without effective supervision, the policy could be distorted into a “tool for legalising” violations or profiteering activities. Therefore, strengthening auditing, information transparency, and independent supervision are indispensable requirements.

Overall, VARS IRE considers Resolution No. 29/2026/QH16 a breakthrough policy step, demonstrating the State’s determination to remove the “historic bottlenecks” of the real estate market. However, the true value of the Resolution will not lie in the text itself, but in its practical implementation effectiveness.

At a time when the market stands at the threshold of a new growth cycle, Resolution No. 29/2026/QH16 is not only a tool for handling unresolved issues but also an important test of policy governance capacity, the degree of coordination among different levels of government, and market confidence in a transparent, stable, and sustainable investment environment.

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