Vietnam real estate stagnation freezes $100 billion in capital

Approximately 4,000 real estate projects in Vietnam are currently stalled, resulting in an estimated 3 quadrillion VND, or more than $100 billion USD, in frozen capital. According to Assoc. Prof. Dr. Tran Dinh Thien, former Director of the Vietnam Institute of Economics, this stagnation causes significant resource waste and severe damage to both businesses and the national economy.

Experts suggest that 70% to 80% of these bottlenecks stem from conflicts and overlaps within the legal system. While recent directives from the Central Government and National Assembly have helped resolve procedural issues for about 1,000 projects, significant challenges remain. Dr. Le Xuan Nghia noted that vacant land plots do not generate value unless they are developed into functional investment assets.

To accelerate capital flow, experts recommend increasing decentralization and empowering local authorities to manage small and medium-sized projects independently.