The Ministry of Agriculture and Environment in Vietnam has initiated significant changes in land management practices across provinces and cities. On April 22, 2025, it was announced that the Department of Land Management has been tasked with developing a draft circular that will establish criteria for monitoring and evaluating land use and management. This new circular aims to create specific metrics for assessing how land is managed and utilized in various localities.
The move comes as part of broader administrative reforms aimed at improving land governance and ensuring sustainable land use. The criteria for evaluation will include various factors, such as the effectiveness of land allocation, compliance with land use plans, and the sustainability of land management practices. This initiative is expected to enhance accountability among local governments and promote better land use practices across the country.
In addition to the land management reforms, Vietnam is also undergoing significant administrative restructuring. According to projections, 52 provinces and cities will be merged into 23 new administrative units. This change is expected to create new opportunities for tourism and economic development as experts believe that merging administrative units will facilitate the development of more attractive tourism brands and enable broader tour routes.
TS. Trinh Le Anh from the University of Social Sciences and Humanities in Hanoi highlighted that even if a province loses its administrative name, maintaining and promoting its tourism brand will ensure that tourists continue to recognize and visit the area. He stated, "Tourism brands are not just about names or logos; they are about the experiences and emotions they evoke in visitors. In the post-pandemic era, tourists seek reasons to choose a destination beyond just its name." This sentiment underscores the importance of preserving the essence of each locality, even amidst administrative changes.
Similarly, PGS.TS Pham Truong Hoang from the National Economics University expressed optimism that provinces will take this opportunity to refresh their tourism brands. For instance, he suggested that Tuyen Quang could promote Ha Giang, while Lam Dong could become a seaside tourism destination. He noted, "From an economic perspective, a new brand can be an opportunity for investment, especially if it highlights unique cultural or natural assets that attract visitors."
As these changes unfold, both experts emphasize the need for local governments to proactively invest in and promote their tourism brands. They advocate for the development of comprehensive marketing strategies that leverage digital platforms to reach potential visitors. PGS.TS Pham Truong Hoang stated, "It is crucial for localities to have the necessary resources—financial, human, and organizational—to ensure that brand development is smooth and timely, avoiding any gaps or misinformation that could deter tourists."
Moreover, the Ministry of Culture, Sports and Tourism has proposed that provinces maintain the names of national tourist areas that have already been recognized while updating place names to align with the new administrative structures. This approach aims to preserve the historical and cultural significance of these locations while adapting to the new governance framework.
In the realm of real estate, the merging of Binh Duong with Ho Chi Minh City (HCMC) is expected to significantly impact property prices. Recent reports indicate that primary apartment prices in Binh Duong have been rising rapidly, with increases of 8-10% per phase. Compared to the same period last year, prices have surged by approximately 15-20%, depending on the project.
Phat Dat Corporation has announced plans to launch sales for its La Pura project at a price of around 60 million VND per square meter, reflecting a 20% increase from 2020 prices. Similarly, CapitaLand's Orchard Heights project features 436 high-end apartments priced at approximately 60 million VND per square meter, marking an 8-12% increase compared to previous offerings.
Data from Batdongsan.com.vn reveals that over the past decade, the average asking price for apartments in Binh Duong has increased by about 112%. In the first quarter of 2025, prices in Thuan An rose by about 39% compared to the same quarter in 2020. This upward trend is attributed to several factors, including a growing demand for housing driven by a significant influx of migrant workers.
Vo Huynh Tuan Kiệt, Director of the Housing Division at CBRE Vietnam, indicated that the merger will have a profound impact on urban planning and development, creating a cohesive link between the three regions and enhancing long-term value. He noted, "The merger will establish a new price baseline for the real estate market, particularly in Binh Duong and Ba Ria-Vung Tau, which are expected to see continued price increases."
Investors are optimistic about the future of Binh Duong's real estate market, especially as it aligns more closely with HCMC. Dinh Minh Tuan, Director of Batdongsan.com.vn in the South, pointed out that the merger creates a favorable environment for price appreciation as Binh Duong becomes more comparable to HCMC, where apartment prices range from 75-120 million VND per square meter.
Despite the increase in prices, demand for apartments in Binh Duong remains strong. A recent report from DKRA Consulting indicated a 56% increase in market demand for apartments in the first quarter of the year compared to the same period last year. Notably, Binh Duong outperformed HCMC in primary apartment sales, capturing 43.6% of the market share in Q1 2025.
As the real estate landscape evolves, new projects continue to emerge, with several reporting absorption rates of 80-90%. For instance, Coteccons' The Emerald 68 project, located along QL13, has seen remarkable success, with a recent launch achieving a 95% sales rate in its initial offering.
In conclusion, the administrative changes and evolving real estate market in Vietnam present both challenges and opportunities for local governments and businesses. As provinces adapt to new governance structures, the focus on sustainable land management and innovative tourism branding will be crucial in harnessing the potential for growth and development in the coming years.
