Property brokers in Vietnam will be required to pass examinations to work, with the new rules coming into effect on February 16.
The Ministry of Construction said the move is happening to improve operations in the sector in light of the improving market.
Much like in Singapore, all real estate agents and agencies much be licensed, and since 2010 this has lead to an improvement in the real estate industry. Many previous practices are now illegal in the city-state and infringements can result in the suspension of licenses and even criminal charges.
Local media reported that in Vietnam it will be provincial and municipal construction departments that will be in charge of organising the examination at least once a year, or they will authorise eligible organisations, such as real estate associations.
The certificate, once issued, will be valid for five years from the date of issuance.
Statistics from the Ministry of Construction showed 26,000 brokers were granted certificates last year. Their certificates will be valid for five years from July 1, 2015, the date when the Law on Real Estate Business 2014 became active. The law required that passing examinations was compulsory to get certificates to operate.
In the past it was easier to get certified as brokers were not required to undertake exams; only to take part in training courses. The granting of broker certificates was seen by many industry observers as the causes for disorderly practices in the real estate market.
It will be interested to see whether other Southeast Asian countries follow the examples of the likes of Vietnam and Singapore, and require all real estate agents and agencies to be regulated and for agents to pass exams to work. Right now, for example, Thailand has no such laws and anyone can act as an agent without experience or knowledge.
