Submit a comment
The Ministry of Construction is assigned to closely monitor the situation and find solutions to remove and handle difficulties in the real estate market so that "there must be clear changes in the last 6 months of the year".
In Resolution 93 dated June 18, the Government assigned the Ministry of Construction, together with ministries, branches and localities, to review and remove obstacles for real estate businesses in project development.
The request was made by the Government in the context of the market showing signs of recovery but not yet out of difficulties. Currently, many projects are still facing problems in planning, legality or implementation procedures. "This must have clear changes in the last 6 months of the year," the Resolution stated.
The Ministry of Construction, the State Bank and localities have reviewed and carefully assessed the reasons for the slow disbursement of the VND120,000 billion social housing credit package. After more than a year, less than 1% of the credit package has been disbursed, or about VND1,144 billion. Of this, about VND1,100 billion is for investors in 11 projects, the rest are home buyers. Therefore, these two agencies must soon have solutions to increase disbursement, resolve issues related to borrowers, interest rates, lending processes and procedures, etc.
In fact, the real estate market has shown signs of positive recovery month by month along with the economic developments. According to data from the Vietnam Association of Realtors (VARS), the absorption rate of new supply in the whole market reached nearly 31% in the first quarter, with about 6,200 successful transactions. This figure increased by 8% compared to the previous quarter and doubled the same period last year.
However, the Ministry of Construction believes that the market is still facing difficulties. The shortcomings and problems have been identified but still need time to be resolved, such as the imbalance between supply and demand. According to this agency, the supply has recently improved, but has not yet met the demand. At the same time, the product structure in the market is unreasonable, when the number of high-end houses accounts for a large proportion, while low-cost houses and social housing are lacking. This is a problem that has lasted for many years.
Another way to overcome the difficulties is that the Government will submit to the National Assembly for consideration and allow three laws related to the real estate market, namely the Land Law, Housing Law and Real Estate Business Law to take effect early from August 1. To have a sufficient legal basis when these laws are implemented early, ministries, agencies and localities are required to submit to the Government in June to issue decrees, circulars and guiding documents.
Speaking at a seminar on June 19, Minister of Planning and Investment Nguyen Chi Dung admitted that there are bottlenecks in land, legality, and inspection. According to him, each major city currently has hundreds of large projects that have not been resolved, with backlogs of decades. "If these can be resolved, it will be a great resource for society," Dung said, emphasizing that removing obstacles for businesses, especially real estate, is a must.
This year, the Government targets GDP growth at 6.5% and CPI at 4%. To achieve this target, the Government requires the implementation of a reasonable, focused expansionary fiscal policy in harmony with monetary policy, savings, and tight control of budget deficit and public debt.
The State Bank regulates exchange rates and interest rates appropriately, increases inspections, controls bad debt risks, and credit quality. This agency must work with commercial banks to continue reducing lending rates, prioritizing capital for a number of areas such as social housing, green growth, digital transformation, and circular economy.
Regarding production and business support, the Government noted that it would address legal bottlenecks for people and production and business enterprises. Ministries and localities should not rely on others, push things away, or avoid issues, and should promptly propose and recommend issues beyond their authority, according to the Resolution.
Ministries and sectors improve the investment and business environment, create favorable conditions, reduce compliance costs, handle problems related to value-added tax refunds, fire prevention and fighting, and traceability for people and businesses.
