Proposal would manage Vietnam’s ‘stalled’ tourism apartments by their function

Vietnam’s tourism property market has expanded to about 146,438 apartments, villas and townhouses used for accommodation, but many remain caught in legal uncertainty.

Data from the Vietnam Association of Realtors, cited by the Ho Chi Minh City Real Estate Association (HoREA), shows that the market added 35,538 products from 2022 through June 2026. That included 24,767 tourism apartments and 10,771 tourism villas and townhouses.

The sector includes condotels, tourism villas, tourism townhouses, officetels, serviced apartments, farm stays, mini-apartments for rent and sleeping pods. HoREA says the legal framework governing investment and business activity has not kept pace with the market’s expansion. Problems include ownership certificates, buyers’ rights and the way properties can be operated.

“

while trying to find its way through the rules

Ho Chi Minh City once had 8,918 officetel units in 29 projects that had not received ownership certificates because of legal obstacles. By December 2024, the city had resolved part of the problem and issued certificates for 7,174 units in nine projects.

An executive at a resort apartment complex in Vung Tau Ward, identified as Mr. N., said his company had been operating while trying to find its way through the rules. He said the biggest obstacle involved risks and complications in issuing certificates to customers. In some localities, authorities had issued certificates describing condotels built on commercial-service land as long-term residential land without the formation of residential units. Those decisions later created violations that took years to resolve, leaving transfers and mortgages stalled and weakening investor confidence.

Le Hoang Chau, HoREA’s chairman, said a draft amendment to the Real Estate Business Law should use the broader phrase “construction works whose functions serve office, tourism or accommodation purposes.” He said function-based management could cover new business models instead of regulating only product names already known to law. He also called for clear rules on intended use, operating mechanisms and the responsibilities of all parties, especially for short-term accommodation.

“

construction works whose functions serve office, tourism or accommodation purposes