Vietnam it is seen by the property developers as a market with high potentials. Despite of  his positive looks, it is claimed that many administrative delays are holding up projects.

Both international and local property development are fighting with lengthy formalities. They claimed this is the key stumbling block.

Frederick Burke, managing partner of Baker & McKenzie explained that regulations regarding the property industry in Vietnam were sound but the main problem is the administrative personnel. He suggested that they are not well trained enough and could be a hindrance for investors.

Agreeing with the opion, the former minister of planning and investment, Tran Xuan Gia pointed the staff as the main problem.

In the capital city of Hanoi one developer was confrunted with 24 months delays to receive a license for a property project in the northern region. In his opinion the red tape could put off foreign investors and developers which are esential for the country . This days Vietnam needs to boost its real estate industry.

‘If a local investor has to face such difficulty, how much of a challenge will a foreign company face?’ wondered the developer.

Licensing procedures for a property investment or construction in Vietnam is one of the most disadvantages in this country, as often took a longer time than in neighbouring countries, explaines the managing director of Savills Vietnam, Brett Ashton.

Developers urge Vietnam goverment to cut project delays

Vietnam Tourism Property Association is keen to work closely with developers. Its goal is to attract more visitors and boost the potential for international property investors.

The developers expectation for Vietnam policies is to encourage existing investors to expand in the  property market. They are, also looking forward for gouverment to creat more favourable conditions for new property investors. The industry is warning that Vietnam needs to move quickly.