Solutions for the management of operations of real estate market participants engaged in digital transformation

DNHN - The present state of the real estate market lacks a unified and efficient approach to its collection and exploitation. As a result, data digitization and information transparency are regarded as technical solutions for the storage and management

Legislate the digitization process and compile a real estate market database.

As per the assessment report published by the Vietnam Real Estate Association (VNREA), data digitization or further advancements towards digital transformation constitute a scientific and technological triumph that facilitates the modification of business practices, thereby enhancing the speed, integrity, and transparency of all operations. This is merely a transitional phase if data is uploaded to the digital environment without transparency, authenticity, stringent management, and equal access for all organizations and individuals to the database. by appearance rather than substance and by failing to capitalize on the advantageous attributes of digitalization.

Particularly in the realm of real estate, the absence of well-defined regulations and obligations about the digitization, construction, and operation of a database concerning the real estate market renders any mechanism non-existent. There is currently no unified information channel that is accurate, dependable, and current for every organization, department, and entity involved in the exploitation, storage, and publication of market data. Frequent updates on the current state of the market. As a result, legislation governing the digitalization process and the development of a real estate market database are required to create a legal corridor robust enough to compel all market participants to be accountable and compliant. implementing information transparency obligations in the real estate industry. More specifically, the following are the functions of the subjects:

The State functions as the central authority responsible for the exploitation, collection, storage, and dissemination of output data about the real estate market. To contribute to the common database, state management agencies, including the Ministry of Construction (which serves as the lead agency) and other ministries, branches, and local authorities, are tasked with the responsibility of utilizing and validating input information, as well as digitizing input data. A competent and specialized agency is required to oversee the synthesis, analysis, publication, and accountability of information about the real estate market that is disseminated on state-managed platforms.

It is the responsibility of real estate development companies to disclose information by applicable regulations. Real estate brokerage and consulting service providers are obligated to contribute data to the state-managed common database and participate in the exploitation and digitization of data.

It is the responsibility of individuals to furnish accurate information about the purchase, sale, and transfer of real estate. This accountability must be extended to criminal matters to prevent the recent proliferation of "two prices" for real estate.

Establishing legislation to permit the digitization of data about the real estate sector would furnish a legal foundation for encouraging investments in digital infrastructure designed to facilitate information collection, storage, publication, and exploitation.

Specific solutions and proposals for the digitization and construction of a real estate market database

Other specialized laws, specify in the Real Estate Business Law the criteria, content, and requirements for the construction and operation of real estate market databases owned by the State, professional social organizations, science and technology organizations, and private enterprises.

Suggesting a mechanism that mandates entities that disseminate research reports through their platforms to do so concurrently on the state-managed general information portal for the real estate market; this measure would ensure comprehensive storage and comparison, evaluation of reliability, and authentication as required.

The authenticity and compatibility of databases and reports distributed by independent scientific and technological organizations, professional social organizations, and the State are the responsibility of information-providing agencies. The law of information mandates that legislation be enacted to establish an autonomous review mechanism for reports released by corporations. This mechanism should be comprised of reputable real estate experts and be subject to oversight by state management agencies and organizations. independent scientific and technological organizations; and professional societies.

Assess, verify, and track data about the real estate market.

To prevent potential shortcomings in the collection and disclosure of information by businesses, it is critical to establish unambiguous regulations governing the publishing authority of organizations, including businesses. It is unlawful for businesses to engage in the purchase and sale of customers' personal information, as well as to retain customer data as private property. Conversely, organizations have the option to allocate resources towards infrastructure development and intelligence systems to generate exhaustive market data and information using the input data they receive. Although corporations may also make this information public, it must be subject to stringent management and control about its veracity.

Chapter VIII of the Law on Real Estate Business (amended), which was approved by the National Assembly on November 28, 2023, shall be implemented as of January 1, 2025. This chapter shall contain regulations about the development and administration of information systems, including housing and real estate market databases. Concerning the housing and real estate market, however, the rights, obligations, and responsibilities of organizations and businesses to collect, research, store, and publish information remain unclear. The Government should include this provision explicitly in the Decree iterating over the implementation of several articles of the amended Law on Real Estate Business. The decree should clarify whether businesses are permitted to disclose information reports, assessments, and comments regarding the real estate market to the public. By doing so, a mechanism can be established to manage this situation and prevent the reports from persisting and causing damage. attending school.

Concurrently, competent state agencies must conduct evaluation, inspection, and oversight of market information disclosed by businesses in a consistent, meticulous, expeditious, efficient, and automated fashion. revolutionized as a result of the implementation of science and technology. Because the value of information is contingent on the moment of publication, avoid manual, cumbersome processes that involve an abundance of paperwork.

Furthermore, it is imperative to apply authenticity criteria to real estate brokerage activities, including information stored and published by non-state organizations and individuals about the real estate market. It is possible to establish regulations mandating the recording of information provided by brokers; such recordings could be utilized as a means of rebuttal in the event of deceptive information intended to inflate prices or conceal product facts. In a similar vein, the dissemination of deceptive, shocking, and fabricated information regarding the real estate industry in cyberspace must be met with severe consequences to deter and prevent the manipulation of the market through false information.

Furthermore, the primary objective of digitizing real estate market data is to enhance market transparency, thereby assisting organizations, investors, and individuals engaged in buying and selling transactions to mitigate potential risks. about business ethics; utilizing authenticated data to assist state agencies in managing and coordinating the market. Consequently, it is imperative to establish a mechanism through which organizations and individuals can obtain timely, accurate, and practical information about the real estate sector via a strictly regulated and monitored information system. By furnishing market participants with unbiased and truthful information, one can establish a foundation for them to assess the genuine worth of the product and foster confidence in their investment decisions within the market.

Nguyen An