Prime Minister Pham Minh Chinh speaks at the conference. (Photo: VNA)Addressing a national online conference in Hanoi thatsought ways to remove obstacles to the development of the domestic real estate market, the PMpointed out the imbalance in the market, with a shortage of housing forlow-income earners.
Other issues include slow policy and market response of stakeholders, limitations in relevant policies, difficult access toloans and sluggishness in the planning work, he added.
Both short and long-term problems must be addressed but without abrupt changes,he stressed, asking concerned agencies to step up state management over thedevelopment of real estate and corporate bond markets.
The financial and banking sectors should work tomake it easier for businesses to access credit, hesaid.
Meanwhile, property enterprises need to proactively addresstheir internal weakness, restructure projects, adjust both segments and prices, andpromote liquidity, the leader continued.
He requested commercial banks to seek ways to cutlending interest rates and restructure debts, stressing the State Bank ofVietnam should manage deposit interest rates to facilitate the reduction of interest rates bycommercial banks.
All-level authorities were also asked to drasticallyreform administrative procedures, especially in licence granting, and focus onperfecting planning schemes to pave way for projects.
Illustrative image (Source: VNA)The government will launch a scheme on socialhousing for low-income earners and workers, and issue a resolution on the realestate market following the conference, which is expected to serve as the foundation to spur its development, in the spirit of harmonised interests and shared risksbetween the State, people and businesses, according to the PM.
The Ministry of Construction reported that themarket faced a supply crunch last year, especially housing for low-incomeearners. Although the number of transactions increased against 2021, it stilldropped as compared with the pre-pandemic level.
The StateBank of Vietnam said as of December 31, 2022, outstanding loans related toreal estate stood at nearly 800 trillion VND (33.65 billion USD).
Statistics bythe Ministry of Finance showed that as of October 28, 2022, issued corporatebonds were valued at 328.9 trillion VND, down 25.2% year-on-year, and decreasedquarterly, with real estate firms making up 28.87% of the total.
Real estatebusinesses have encountered a range of difficulties over the past time,especially in credit access, bond issuance, and capital mobilisation, accordingto insiders.
Experts and officials said the depressed property market is partly attributable to oversupply and a shortage of affordable housing. Besides, real estate businesses have issued a giant volume of bonds, which causes them great pressure. They urged restructuring the market segments, cutting property prices, and restructuring and rescheduling debts as some measures to assist with handling difficulties faced by the market./.
VNA
