Prime Minister: Remove 'bottlenecks' for real estate to develop healthily and sustainably

Prime Minister Pham Minh Chinh chairs the Conference on developing a safe, healthy and sustainable real estate market.

On the afternoon of July 14, at the Government Headquarters, Prime Minister Pham Minh Chinh chaired the Conference on developing a safe, healthy and sustainable real estate market. The conference was held online between the Government Headquarters and the People's Committees of 5 centrally-run cities including Hanoi, Ho Chi Minh City, Da Nang, Hai Phong and Can Tho.

Also attending the conference were Deputy Prime Minister Le Minh Khai; leaders of the ministries and branches: Construction, Finance, Natural Resources and Environment, State Bank of Vietnam; Leaders of relevant ministries and branches who are members of the Central Steering Committee on housing policy and real estate market (Justice, Public Security, Planning and Investment, Transport, Agriculture and Rural Development, Culture, Sports and Tourism, Information and Communications, Vietnam General Confederation of Labor, Government Inspectorate); representatives of the Real Estate Association, experts in the fields of finance and real estate; leaders of the cities: Hanoi, Ho Chi Minh City, Da Nang, Hai Phong, Can Tho.

Reporting at the conference, Minister of Construction Nguyen Thanh Nghi said that in recent years, the real estate market has made extremely important contributions to the entire economy; the real estate industry's direct and indirect contributions through other sectors account for about 4.5% of GDP. In 2021, the real estate market still faced many difficulties due to the impact of the pandemic, but it has gradually overcome, adapted, and changed its state flexibly to maintain relative stability. By the beginning of 2022, the socio-economic situation has had many positive changes, helping most industries, sectors, and localities to recover and grow again.

Minister of Construction Nguyen Thanh Nghi reported at the conference.

The Minister of Construction also said that the current legal system related to investment, construction and real estate business still has some shortcomings that need to be studied and revised. The price of residential real estate is increasing compared to people's income. Along with that, real estate trading floors are formed and operate spontaneously and unstable; there is also a phenomenon of real estate trading floors colluding with each other to "hold goods", "inflate prices", causing "virtual fever" that disrupts the market; real estate brokerage services are not well controlled; real estate transactions are not transparent; control of investment capital flows into the real estate sector is not strict, still has potential risks; the auction of land use rights still has some shortcomings and limitations; the division of land use rights, "dividing plots and selling land" still has some shortcomings...

At the conference, delegates focused on discussing and forecasting the Vietnamese real estate market, proposing orientations and solutions on product structure and supply sources for the real estate market to develop safely, healthily and sustainably; macro policies, the impact of land law policies on the real estate market; proposing the construction and improvement of legal institutions related to the real estate sector and law enforcement.

Speaking at the conference, Prime Minister Pham Minh Chinh said that in recent times, the world political and economic situation has had many complex, unstable and unpredictable fluctuations, affecting the Vietnamese economy. In that context, we still maintain independence, sovereignty, territorial integrity; political stability, social order; ensure security, safety and security for the people; promote foreign affairs activities; achieve a relatively high growth rate compared to other countries in the region and the world; control inflation, maintain macroeconomic stability, and ensure major balances.

The Prime Minister affirmed that the efforts of all levels, sectors, localities and the business community to actively and diligently implement the Central Resolution, the Government, legal regulations and the direction, management, solutions and policies of the Government on the real estate market have contributed to many positive changes in the socio-economic situation, the real estate market has gradually recovered and is on the rise, contributing positively to socio-economic development, ensuring social security and macroeconomic stability.

Overall, our country has never had such a foundation, potential, position and prestige as it does today. The real estate market has contributed to the country's overall achievements. Through that, it can be affirmed that our real estate market development policy is basically correct; however, as a developing country, there are shortcomings and limitations.

Prime Minister Pham Minh Chinh speaks at the conference.

The Prime Minister also frankly pointed out the shortcomings, limitations, and inadequacies of the market and some important "bottlenecks" that need to be focused on removing so that the real estate market ecosystem can develop safely, healthily, and sustainably.

The Prime Minister requested ministries, branches and localities to focus on directing and implementing well the tasks and solutions to overcome the above-mentioned shortcomings and continue to promote the stable and healthy development of the real estate market in the coming time.

In the immediate future, focus on synchronously implementing the tasks and solutions in Resolution No. 11/NQ-CP of the Government on the Program for socio-economic recovery and development; create many jobs in many fields, many localities and regions, because having many jobs will bring people to live, work and develop the real estate market. In particular, it is necessary to continue to maintain macroeconomic stability, control inflation, ensure major balances to create conditions for the development of a safe, healthy and sustainable real estate ecosystem.

The Head of Government requested ministries, branches and localities to grasp the development situation of the real estate market, balance supply and demand, create a harmonious and healthy environment, in which, priority is given to the segment for social security; respect market rules but must have the State's management role, not to allow negativity and market manipulation. Review legal regulations to resolve both immediate and long-term issues. Promote decentralization and delegation of authority; study and pilot new mechanisms and policies to resolve obstacles, while creating new momentum for the real estate market. Promote the development of strategic infrastructure to create new development space and new momentum for the real estate market. Develop appropriate, safe, effective and interconnected policies between the capital market and the real estate market.

The Prime Minister requested to strengthen inspection and examination work, early detection of violations to protect the market and assets; not to criminalize economic relations so that relations can develop according to market rules, but to strictly control and handle violations to protect people and units that act in accordance with the law, harmonizing the interests of the State, people and businesses; not to legalize violations, but to study policy mechanisms to resolve them appropriately and effectively.

The Prime Minister pointed out a number of important "bottlenecks" that need to be focused on removing.

Prime Minister Pham Minh Chinh assigned Deputy Prime Minister Le Minh Khai to preside over and direct the development of a safe, healthy and effective real estate market ecosystem; and requested ministries and branches to closely coordinate to remove difficulties for businesses and people related to the real estate market.

Accordingly, the Prime Minister assigned 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, and create conditions for the real estate market to develop stably and healthily. Accordingly, it is proposed to submit to the National Assembly for comments and approval of the Housing Law (amended) and the Real Estate Business Law (amended) to create a legal framework for real estate business activities and enhance the effectiveness of real estate market management.

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 apartments. Research and provide guidance to remove difficulties and obstacles in laws and legal procedures of the project. In addition, regularly monitor the situation and developments of the real estate market; report quarterly to the Prime Minister on the situation of real estate business and the real estate market nationwide and propose solutions for the real estate market to develop stably and healthily.

Meeting scene.

The Head of Government assigned the Ministry of Finance to study and amend Decree 153/2020/ND-CP dated December 31, 2022 of the Government on offering and trading 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. Inspect and supervise compliance with the law on issuance and use of capital raised from bond issuance, especially private bond issuance of real estate businesses, credit institutions related to real estate businesses, businesses with large issuance volume, high interest rates, businesses with loss-making business results, and businesses issuing without collateral.

The Ministry of Finance directs and guides the implementation of bond issuance and capital mobilization activities of real estate businesses on the stock market in accordance with legal regulations; creates conditions and does not hinder businesses from mobilizing capital to support recovery and development. At the same time, research and propose to issue regulations on taxes on the use of real estate, on real estate transactions and business activities to limit the situation of buying and selling many times, limiting the situation of speculation and hoarding of real estate.

Prime Minister Pham Minh Chinh assigned the State Bank of Vietnam to monitor, control, and restructure credit for the real estate sector to ensure proper use and avoid risks to the market. Direct and guide credit institutions to continue lending to the real estate sector in accordance with legal regulations, lending to real estate projects with full legal status; prioritizing lending to commercial housing projects, social housing for low-income people, and housing for workers that have been licensed and started construction to create supply for the market.

The Prime Minister requested the Ministry of Natural Resources and Environment to 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 administration) to ensure consistency and suitability with the actual situation. Inspect, examine and direct, guide and coordinate with localities to detect, prevent and strictly handle violations in land use rights auctions to ensure compliance with the law.

The Ministry of Planning and Investment directs, urges, and guides localities to remove difficulties and obstacles in investment procedures, approve investment policies for housing and real estate projects to support and increase supply for the market. Monitor and promote the attraction of foreign investment capital in the real estate business sector.

The Prime Minister assigned the Ministry of Public Security to preside over and closely coordinate with the Ministry of Finance, the State Bank of Vietnam and relevant agencies to strengthen the work of grasping the macroeconomic situation; strictly handle the activities of real estate trading floors and real estate brokerage activities that violate the law, and acts of providing inaccurate information, causing negative impacts on the activities of the financial, credit and real estate markets.

The Ministry of Information and Communications directs news agencies and press to increase the provision of timely, official and accurate information on the real estate market, stock market and bond market; strictly handle acts of providing inaccurate information, causing negative impacts on the activities of the financial, credit and real estate markets.

The Prime Minister requested localities to urgently complete land use planning, construction planning, housing development programs and plans; review land funds, list of projects calling for investment, organize land allocation, auction land use rights, and bid for projects to select investors to promote development and increase the supply of real estate and housing for consumption.

In particular, reviewing and making a list of housing and real estate projects that are being prepared for investment or being implemented in the area; specifically assessing the reasons and causes of difficulties and obstacles for each project, especially projects that have been approved for investment but have not been implemented or are slow to be implemented. On that basis, focusing on removing difficulties and obstacles in legal issues and procedures for preparing investment in housing projects to increase supply to the market.

The Prime Minister also requested localities to implement Resolution No. 11/NQ-CP of the Government on the Socio-Economic Recovery and Development Program, including making a list of projects, reviewing land funds, completing legal procedures, selecting investors to implement social housing projects, industrial park worker housing projects, and renovating and rebuilding old apartment buildings in the area.

The Prime Minister assigned the Government Office to coordinate with the Ministry of Construction and relevant ministries and branches to complete and submit to the Prime Minister for promulgation the Prime Minister's Directive on solutions to develop a safe, healthy and sustainable real estate market./.