Apartment buildings in a corner of Hanoi. (Photo: VNA)Despite this effort, some firms are anticipating more detailed and aggressiveactions to ensure success.
Resolution No 33/NQ-CP focuses on promoting the safe, healthy, and sustainabledevelopment of the real estate market. Its key objectives include improvinginstitutions, promoting social housing development, and enhancingaccountability through the promotion of capital sources from credit andcorporate bonds.
In order to achieve these goals, the resolution seeks to remove obstacles inthe development of the real estate market, particularly in terms of institutionsand capital sources.
To this end, amendments to relevant laws such as the Law on Land, the Law onHousing, the Law on Real Estate Business, and the Law on Bidding will beexpedited. Additionally, the National Assembly will consider issuing aresolution to pilot several policies aimed at promoting social housingdevelopment.
Problems related to capital sources for the real estate market would also beput under scrutiny, the resolution said, adding that appropriate measures wouldbe raised to lower rates to aid the real estate market together with policiesto develop the corporate bond market in a safe, healthy and sustainable way.
In addition, solutions would also be raised to boost supply and adjust propertyproducts toward a more reasonable structure with a focus on promotingaffordable housing for low-income earners and workers.
The highlight of the Resolution is the implementation of a low-rate creditpackage worth 120 trillion VND for social housing development.
The package would meet around 12% of the capital demand for the goal of onemillion affordable homes for low-income earners and workers in the 2021-30period, which would be provided to both developers and home buyers at ratesaround 1.5-2% lower than the average medium- and long– term lending rate ofState-owned commercial banks, including Agribank, BIDV, Vietcombank andVietinbank.
Le Huu Nghia, the director of a construction company, said the package would bea bright spot of credit for the market, but commercial banks have toopt-in.
With rates in the market staying at a high level, around 14% for lending and 9%for deposits, the reduction in rates of the package was not very significant tohome buyers as they must still bear quite high rates.
Nghia said that the Government should have a credit package with a preferentialrate of around 5% per year for social housing development.
The Government’s solutions were good, Nghia said, though cautioned the marketis unlikely to see a rapid recovery.
Not until the third quarter of next year when relevant laws were amended, wouldthe market see improvement, he predicted.
Deputy President of the Vietnam Real Estate Association Nguyen Van Dinh saidthat the resolution raised new points such as attracting foreign directinvestment in developing the real estate market and directing housingdevelopment toward the real market demand together with creating a proper legalframework for housing development.
The problem was how to speed up the issuance of sub-law documents to timelyprovide guidance for the implementation, Dinh said.
Importantly, the resolution highlights the responsibility of local authoritiesin speeding up the handling of projects, improving investment processes andspeeding up the procedures for the project implementation, which are expectedto tackle the supply crunch, he said./.
VNA
