Rapid growth in tourism and urban economies over recent years has catalyzed the emergence of hybrid real estate formats - buildings offering combined office, tourism, and accommodation functions. From coastal resort apartments to urban mixed-use office units, these developments have established a vital role in positioning tourism as a key economic driver.

However, successive legal frameworks – from the Law on Real Estate Business 2014 to its 2023 iteration – have struggled to keep pace with market realities. This delay has created regulatory voids that complicate State management and leave investors exposed.

Regulatory voids and breakthrough proposals

Market statistics show tens of thousands of resort apartments, holiday villas, and urban officetels currently operating across major commercial and tourism hubs. Despite their substantial economic contribution, these assets remain bogged down by inconsistent regulations. Lax oversight in certain localities, pre-sales launched without full legal clearance, and unrealistic yield guarantees have driven investors into complex disputes, placing heavy strain on local infrastructure and public order.

Recognizing these vulnerabilities, the Ministry of Public Security and regulatory bodies have raised serious concerns regarding potential risks. Furthermore, ongoing market restructuring demonstrates that a piecemeal, product-by-product regulatory approach is no longer fit for purpose. The emergence of new concepts like farmstays and micro-sleep    ing pods further highlights the need for a more adaptable legal framework.

To resolve these legacy bottlenecks, HoREA welcomed the draft Law on Real Estate Business (amended) for adopting a concept covering real estate projects designed for office, tourism, and accommodation purposes. However, this association pointed out an inconsistency: 15 other provisions revert to listing specific product names rather than applying a unified definition.

Consequently, HoREA recommends a comprehensive overhaul, replacing itemized terms with a single, standardized phrase: "buildings with functional space for office, tourism, and accommodation purposes." This shift would ensure statutory consistency and establish a future-proof legal foundation capable of accommodating novel hospitality formats without disrupting regulatory oversight.

Expanding foreign access and harnessing digital integration

A core highlight of HoREA’s proposal is allowing foreign nationals legally entering Vietnam to purchase floor area in multi-story mixed-use buildings, capped at 30% of a building's total commercial floor space. Alignment with proposed amendments to the Housing Law is expected to help attract high-quality foreign direct investment.

In line with the national digital transformation strategy, HoREA also advocates incorporating standardized contract templates for short-term rentals processed through global digital platforms like Airbnb, Booking.com, and Agoda. Institutionalizing electronic contracts and mandating personal income tax withholding via these platforms will enhance cash flow transparency, prevent tax evasion, and secure online transactions.

HoREA’s recommendations address immediate project bottlenecks while establishing a clear long-term strategy. A synchronized, transparent, and professional regulatory framework will help transform the tourism and accommodation sectors into secure, high-yield investment channels, supporting broader economic development in the coming phase.