New Government Directive on Promoting Real Estate Market Development

The Prime Minister has directed a number of solutions to promote the safe, healthy and sustainable development of the real estate market.

The Directive clearly stated that in recent times, the world political and economic situation has had many complex, unstable and unpredictable fluctuations, affecting the Vietnamese economy which has a very large openness. In that context, the Government has issued many directives to stabilize the macro economy, control inflation, ensure major balances, help the economy recover and achieve a relatively high growth rate compared to other countries in the region and the world.

The fact that all levels, sectors, localities and the business community have actively and enthusiastically implemented the Resolutions of the Party and the State, legal regulations and the direction, management, solutions and policies of the Government on the real estate market has helped the socio-economic situation have many positive changes, ensuring social security and macroeconomic stability.

The real estate market plays a very important role in maintaining macroeconomic stability, controlling inflation, ensuring major balances, and promoting growth. However, in addition to positive results, in practice, the development of the real estate sector in recent times has also revealed many shortcomings, limitations, and inadequacies, which are not really sustainable and still contain many potential risks, such as: unreasonable structure of real estate goods, prices of real estate products, especially housing prices, are still quite high compared to people's income, the database of information on the real estate market is not synchronous, complete, unreliable, and transparent...

Some shortcomings that need to be focused on to be resolved are: The legal system related to the real estate market still has some contents that do not meet practical needs and have not been supplemented or amended in a timely manner; the development of real estate projects in some localities is not according to planning and plans, not suitable to market needs; investment procedures are still stipulated in many different legal documents, through many steps, so the time to carry out investment procedures is prolonged; the regulation that real estate transactions are not required through the floor has created the basis for the formation of "ghost projects", cases of customer fraud, on the other hand, the State also faces many difficulties in managing information about the real estate market, at the same time, there is a situation of tax loss and loss of revenue for the state budget; State management is not strict, not timely, and does not meet management requirements well...

Promote the real estate market to develop safely, healthily and sustainably

In order to overcome the above shortcomings and continue to promote the safe, healthy and sustainable development of the real estate market in the coming time, the Prime Minister requested: Review legal regulations to solve immediate and long-term problems in the direction of building healthy, appropriate and effective policy tools to ensure connectivity, safety and certainty between capital markets and real estate markets, diversify capital sources for the real estate market; promote decentralization and delegation of authority to all levels, carefully study and propose pilot policy mechanisms to create new motivation and impulse for market development.

Do not unreasonably tighten credit, strengthen inspection and supervision

Persistently, resolutely, and resolutely develop a safe, healthy, and sustainable real estate ecosystem; do not unreasonably tighten credit, but strengthen inspection and supervision, do not loosen state management; do not criminalize economic and civil relations; proactively detect, prevent, and strictly handle violations in accordance with the provisions of law, pay attention to tax evasion in real estate business, do not let it collapse, protect those who do the right thing, protect and harmonize the interests of the state, people, and businesses.

Harmoniously, reasonably and effectively combine fiscal and monetary policies, implement flexible, safe and prudent monetary policies, reasonably expand fiscal policies, focus on ensuring efficiency, strictly manage prices and markets; do not operate policies "jerkily", do not suddenly change the state from "loosening" to tight control, or vice versa.

Ministries, branches and localities focus on synchronously implementing tasks and solutions in Resolution No. 11/NQ-CP of the Government on the Socio-Economic Recovery and Development Program.

Focus on implementing solutions to attract investment, promote production and business, create jobs in many fields and localities; stabilize the macro economy, control inflation, and ensure major balances of the economy.

Specific and accurate assessment of the situation and supply and demand

Specifically and accurately assess the situation and supply - demand to develop the real estate market on the basis of respecting market rules, competition rules, while promoting the State's management role and policy tools to intervene and control when necessary in an appropriate, timely and effective manner, not allowing market manipulation, hoarding, price hikes...

Identify market segments and needs, such as industrial real estate, worker housing, and low-income housing, to have appropriate policies to promote the market, focus on social security, create opportunities for low-income people, "not sacrificing progress and social justice to pursue mere economic growth".

Develop strategic infrastructure to create new development space, new development momentum, promote the formation of new industries, services, and urban areas.

Strengthen inspection, examination and auditing

Strengthen inspection, examination and auditing to remove obstacles and handle violations to protect the market, protect assets and protect people. Do not legalize violations but evaluate objectively, find out the causes and have mechanisms to remove practical obstacles.

Do a good job of communication, with appropriate and effective forms, promote education, foster financial knowledge and legal knowledge for the people, in schools and in other forms.

Building a real estate market information system linked to land information

The Prime Minister requested the Ministry of Construction to urgently study and complete the legal system related to the real estate sector to ensure consistency, remove difficulties and obstacles, create conditions for the real estate market to develop stably and healthily, build a real estate market information system associated with land information, complete the legal basis and increase the implementation of non-cash payments in real estate transactions.

Accordingly, it is proposed to submit to the National Assembly for comments and approval of the Law on Housing (amended) and the Law on Real Estate Business (amended) to create a legal framework for real estate business activities, enhance the effectiveness of real estate market management; urgently amend and supplement Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government on the development and management of social housing, Decree No. 49/2021/ND-CP dated April 1, 2021 of the Government on amending and supplementing Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government on the development and management of social housing in accordance with the Law on Housing.

The Ministry of Construction shall preside over and coordinate with relevant ministries and branches to research and propose the issuance of regulations guiding the implementation procedures for housing and urban area projects.

Regularly monitor the situation and developments of the real estate market; report quarterly to the Prime Minister on the real estate business situation and real estate market nationwide and propose solutions for the real estate market to develop stably and healthily.

Inspect and examine the implementation of laws on real estate business, real estate trading floor activities, real estate brokerage activities; coordinate with the Provincial People's Committee to organize inspections and reviews of housing and real estate business projects to make recommendations to competent state agencies to revoke, suspend, pause or adjust, convert, and transfer real estate business projects in accordance with the provisions of law.

The Ministry of Construction shall preside over and coordinate with relevant ministries and branches to establish a working group to direct, guide and urge localities to implement Resolution No. 11/NQ-CP of the Government on the Program for socio-economic recovery and development regarding the policy content to support the development of social housing, housing for workers in industrial parks and the renovation and reconstruction of old apartment buildings.

Direct, guide and coordinate with localities to review, supplement planning, and arrange land funds for the development of social housing and housing for workers in accordance with legal regulations, strictly implement the regulation on reserving 20% ​​of land funds in housing projects and urban areas and ensure the need for the development of social housing and housing for workers in the area.

Direct, guide, and coordinate with localities to review, establish, and publish a list of investors in social housing projects, worker housing projects, and renovation and reconstruction of old apartments that are eligible to borrow a 2% interest rate support package through the commercial banking system.

The Ministry of Construction shall preside over and coordinate with relevant ministries and branches to study and propose policies to promote the development of social housing and housing for industrial park workers. Complete and publicly implement the information system on housing and the real estate market.

Control capital mobilization of real estate enterprises on the stock market, avoid speculation and manipulation.

The Ministry of Finance urgently amends Decree No. 153/2020/ND-CP dated December 31, 2020 of the Government on offering and trading individual corporate bonds in the domestic market, and offering corporate bonds to the international market. Control capital mobilization activities of real estate businesses on the stock market to avoid speculation, manipulation, and price inflation.

The Ministry of Finance coordinates with the State Bank of Vietnam to inspect and supervise compliance with the law on issuance, investment and provision of services on corporate bonds, especially the issuance of individual bonds by real estate enterprises, credit institutions related to real estate enterprises, enterprises with large issuance volume, high interest rates, enterprises with loss-making business results, and enterprises issuing without collateral.

Direct and guide the implementation of capital mobilization activities (including bond issuance activities) of real estate businesses on the stock market in accordance with legal regulations; create conditions and not hinder businesses (with sufficient capacity, good and healthy business performance...) from mobilizing capital to support recovery and development.

Research and perfect tax policies suitable to the reality of real estate to contribute to encouraging effective use of houses and land, contributing to limiting speculation in houses and land, ensuring reasonable and stable revenue mobilization for the state budget, suitable to Vietnam's socio-economic conditions and international practices.

The Ministry of Planning and Investment directs, urges, and guides localities, proposes solutions to remove difficulties and obstacles, resolutely cuts unnecessary administrative procedures in investment procedures, approves investment policies, decides on investment, and issues investment registration certificates for housing and real estate projects to support and increase supply for the market. Monitors and promotes attracting foreign investment capital into the real estate business sector.

The Ministry of Natural Resources and Environment shall coordinate with the Ministry of Finance and the Ministry of Justice to study, review and amend current legal provisions related to land use rights auctions (laws on auctions, laws on land, laws on tax management) to ensure consistency and suitability with the actual situation in the locality.

Inspect, examine and direct localities to prevent and strictly handle violations in land use rights auction activities to ensure compliance with the law. Inspect and review planning and land use planning indicators to ensure compliance with land use planning of industries and sectors to ensure reasonable harmony, avoid overlap and complaints.

The State Bank of Vietnam closely monitors and supervises credit for the real estate sector. Directs credit institutions to strictly control credit quality and lending for the real estate sector to ensure compliance with legal regulations; urgently consider prioritizing lending to social housing projects, worker housing, and low-cost commercial housing with high efficiency and debt repayment capacity.

Public transparency of construction planning information

People's Committees of provinces and centrally run cities urgently organize the establishment, appraisal and approval of urban and rural construction planning, land use planning and plans; publicly and transparently disclose information on construction planning, lists and progress of infrastructure development projects, real estate projects, especially large projects, and the merger, establishment and upgrading of local administrative units; prevent the phenomenon of spreading rumors and speculation to push up prices for illegal profit.

Urgently develop a Housing Development Program for the period from now to 2025 and 2030 and a 5-year and annual Housing Development Plan according to the provisions of the Housing Law, which clearly identifies a list of housing projects as a basis for approving investment policies for housing projects in the area.

Review and make a list of housing and real estate projects in the area; specifically assess the reasons and causes for projects that have been approved for investment but have not been implemented or are slow to be implemented. On that basis, focus on removing difficulties and obstacles in legal matters and procedures for preparing investment in housing projects to increase supply to the market.

Organize public announcement of project list, land fund, housing and real estate development procedures in the area to call for investment; create favorable conditions for domestic and foreign investors to easily access and participate in housing and real estate investment.

Focus on directing and organizing the implementation of land allocation, selecting investors to implement real estate projects and new housing projects to increase supply for the market. Promote the implementation of land use rights auctions; bidding for projects using land to select investors to help increase the supply of commercial housing projects for the real estate market.

Promote the development of social housing and housing for workers

Implement solutions to promote the development of social housing and housing for workers in the area: Review, supplement planning, and arrange land funds for the development of social housing and housing for workers in accordance with legal regulations, strictly implement the regulation of reserving 20% ​​of land funds in housing projects and urban areas and ensure the need for the development of social housing and housing for workers in the area.

Focus on implementing Resolution No. 11/NQ-CP of the Government on the Socio-Economic Recovery and Development Program, including urgently making a list of projects, reviewing land funds, completing legal procedures, selecting investors to implement social housing projects, industrial park workers' housing, and renovating and rebuilding old apartment buildings in the area.

Review the subjects and conditions, on that basis, establish and publish the List of Investors of social housing projects, worker housing projects, and renovation and reconstruction of old apartments that are eligible to borrow the 2% interest rate support package through the commercial banking system according to the provisions of the Decree on interest rate support from the state budget for loans of enterprises, cooperatives, and business households.

Coordinate with the Provincial Social Policy Bank in reviewing and synthesizing the needs of customers who are individuals and households borrowing to buy, rent-purchase social housing, housing for workers; build new or renovate, repair houses according to the provisions of Article 16 of Decree No. 100/2015/ND-CP, Clause 10, Article 1 of Decree No. 49/2021/ND-CP and related documents, ensuring accuracy and reflecting the actual needs of the people.

Urgently complete the quality assessment of remaining old apartment buildings in the area to identify apartment buildings that must be demolished; promptly establish and approve the Plan and list of projects to renovate and rebuild apartment buildings according to the provisions of Decree No. 69/2021/ND-CP.

Control, detect, prevent and strictly handle violations in land use rights auction activities to ensure compliance with the law.

Preventing division, "plotting and selling land" in areas where investment is not permitted

Take measures to manage and prevent the division, "plotting and selling of land" in areas where investment is not permitted and infrastructure is lacking; strengthen control over the activities of real estate trading floors, organizations and individuals practicing real estate brokerage; rectify the behavior of buying and selling by hand, "inflating prices" that disrupt real estate market information.

Review projects that use land but are slow to implement, leave land fallow, misuse land, waste land; on that basis, coordinate with relevant agencies to review and guide handling according to authority and regulations of land law and other relevant laws to put land funds into effective use, orient development in accordance with the actual needs of society.