HANOI – The municipal government of Hanoi has launched a stringent crackdown on unlicensed land brokers, known locally as "cò đất," in a determined effort to combat fraudulent activities and stabilize the city's often volatile real estate market.
The initiative, announced by the Hanoi People's Committee, targets individuals and groups who operate outside the legal framework, creating falsified land documents and spreading misinformation to manipulate property prices. Authorities state that these illicit activities not only defraud citizens of their savings but also disrupt urban planning and create unsustainable speculative bubbles.
For years, these "shadow brokers" have been a persistent problem in Vietnam's property sector. They often operate by exploiting legal loopholes and a lack of information among buyers and sellers. Their tactics include fabricating land-use right certificates (commonly known as "red books"), creating "ghost" development projects, and artificially inflating land values by spreading false rumors about future infrastructure plans.
In response, Hanoi's Department of Natural Resources and Environment (DONRE) has been instructed to implement a series of robust measures:
Increased Scrutiny: All land transaction dossiers will undergo a more rigorous verification process at public registration offices.
Enhanced Inspections: Surprise inspections will be conducted at notary offices and land administration centers, particularly in suburban districts experiencing rapid urbanization like Hoai Duc, Dong Anh, and Gia Lam, which are hotspots for speculation.
Public Awareness Campaign: The city will roll out a campaign to educate citizens on how to conduct property transactions safely through official and licensed channels, warning them of the risks associated with "cò đất."
Strict Penalties: Authorities have warned that any individuals found producing or using fraudulent documents will face criminal prosecution. The crackdown will also target any government officials found to be colluding with these illegal brokers.
"The integrity of the land market is crucial for social stability and economic development," said a representative from the Hanoi People's Committee. "We are committed to protecting the legitimate rights and assets of our citizens and creating a transparent, healthy real estate environment. These illicit brokers will be dealt with decisively."
The move comes as the city's real estate market continues to be a primary channel for investment, making it susceptible to manipulation. By tightening control, the government aims to direct investment towards legitimate projects and prevent the market distortions that can have widespread economic consequences.
While the crackdown is being welcomed by legitimate real estate firms and the public, analysts note that success will depend on consistent and long-term enforcement. Eradicating these deeply entrenched networks will require not only punishing the brokers but also addressing any systemic corruption that allows them to operate.
