What Is the Process for Implementing a Real Estate Investment Project?
The process for implementing a real estate investment project can be understood as a series of legal procedures and tasks that an investor must carry out to turn an initial idea or land fund into a project that is legally approved for development and construction in accordance with applicable regulations.
This process typically involves multiple areas of law, including:
- Investment law.
- Land law.
- Planning law.
- Construction law.
- Housing law.
- Real estate business law.
- Environmental law and other sector-specific regulations, depending on the project.
The Law on Investment No. 61/2020/QH14 is one of the legal foundations governing investment procedures. The Land Law No. 31/2024/QH15 has been effective since January 1, 2025, while the Law on Real Estate Business No. 29/2023/QH15 has also been effective since January 1, 2025. Therefore, when implementing a specific project, it is necessary to review the applicable regulations currently in force, as well as relevant amendments and guiding documents.
What Are the Steps in the Legal Process for a Real Estate Project?
From a general perspective, the investment and construction process for a real estate project can be outlined through the following groups of tasks:
| Stage |
Key Activities |
Intended Outcome |
| 1 |
Land Fund Research |
Determine development potential |
| 2 |
Determine Investment Procedures |
Identify the investment mechanism/investor |
| 3 |
Land Procedures |
Complete the legal basis for land use |
| 4 |
Planning |
Establish an appropriate planning basis |
| 5 |
Project Preparation |
Prepare, appraise and/or approve project documents, as applicable |
| 6 |
Design |
Complete the design documents |
| 7 |
Construction Permit |
Satisfy licensing requirements, if a permit is required |
| 8 |
Construction |
Develop the physical works |
| 9 |
Acceptance |
Confirm completion in accordance with regulations |
| 10 |
Real Estate Business and Handover |
Put the products into operation in compliance with legal requirements |
What Documents Are Included in the Investment and Construction Dossier for a Real Estate Project?
There is no single investment and construction dossier applicable to every real estate project.
Depending on the stage of the project, the documents may be divided into the following groups:
1. Investment Documents
These may include:
- Project proposal documents.
- Application for approval of investment policy, where applicable.
- Investor selection documents.
- Decisions/approvals relating to the investor.
2. Land Documents
These may include:
- Documents proving land use rights.
- Land allocation or land lease documents.
- Compensation, support and resettlement documents.
- Site clearance documents.
- Documents relating to the fulfillment of land-related financial obligations.
3. Planning Documents
These may include:
- Approved planning documents.
- Planning drawings.
- Explanatory reports.
- Planning management regulations.
- Planning adjustment documents, where applicable.
4. Construction Documents
These may include:
- Project documents.
- Design documents.
- Appraisal/review documents.
- Construction permits, where required.
- Construction documents.
- Acceptance documents.
- As-built documentation.
5. Real Estate Business Documents
Depending on the type of product and the stage of commercialization, it is necessary to verify the documents demonstrating that the project and its products satisfy the conditions for being put into business under applicable real estate business regulations.
How Long Does It Take to Implement an Investment and Construction Project?
There is no single timeline applicable to all projects.
The project schedule depends on factors such as:
- Project scale.
- Project type.
- Legal status of the land fund.
- Compliance with planning requirements.
- Whether investor selection procedures are required.
- Complexity of site clearance.
- Land procedures.
- Project appraisal and approval.
- Design.
- Construction permits.
- Construction progress.
In practice, land-related procedures, site clearance, planning and investment procedures can have a significant impact on the overall project timeline.
Therefore, businesses should not develop a timeline based solely on the statutory processing time for each individual administrative procedure. Instead, they should establish an overall legal and regulatory roadmap for the project.
Frequently Asked Questions
1. What are the steps in the investment and construction process for a real estate project?
In general, the process may include land fund research, determination of investment procedures, land procedures, planning, project preparation, design, construction permits where required, construction, acceptance, and putting the project into operation and business.
2. Are investment and construction procedures the same for all real estate projects?
No. The process depends on the type of project, land fund, investor selection mechanism, planning and specific legal requirements.
3. Is approval of the investment policy mandatory for every real estate project?
No. Not every project is subject to the investment policy approval procedure. It is necessary to determine whether the project falls within the cases requiring such approval under investment laws and regulations.
4. At which stage does the 1/500 detailed planning take place?
Detailed planning is one of the groups of tasks involved in the preparation and implementation of a project. However, the specific timing and requirements depend on the type of project and the applicable planning system.
5. Does having an approved 1/500 plan mean that construction can begin immediately?
Not necessarily. Planning is one of the legal bases for project development. Construction also depends on the project documents, design, conditions for commencement, construction permits where required, and other applicable legal requirements.
Read more: What Is 1/500 Planning? Required Documents, Procedures, and Key Legal Issues
No. Putting real estate products into business requires compliance with the conditions prescribed by real estate business laws and other relevant regulations.
The investment and construction process for a real estate project is an interdisciplinary process involving investment, land, planning, construction and real estate business regulations simultaneously.
For each specific project, businesses need to determine the applicable process based on the origin of the land, project type, scale, planning, investor selection mechanism and other relevant legal requirements.
Developing a project-specific legal roadmap can help investors better control the timeline, costs and risks throughout the project development process.
