The government has drastic support policies.
At the Forum "Sustainable development of the real estate market and awarding certificates to livable projects in 2023" on the morning of September 22, Mr. Pham Tan Cong - Chairman of the Vietnam Federation of Commerce and Industry (VCCI) affirmed that real estate is a market with a particularly important position and role for the national economy of Vietnam.
The real estate market has its own ecosystem and is directly related to other markets such as the financial market, labor market...
In fact, Mr. Cong said that recognizing the important role of the real estate sector, since the beginning of the year, the Government has continuously paid attention and issued many policies to support the market recovery and businesses to overcome difficulties.
Specifically, in the first half of 2023 alone, the Government issued nearly 10 Resolutions, Decrees, and Circulars, along with many meetings with leading real estate associations and businesses held to find solutions to difficulties in the market.
Mr. Pham Tan Cong - Chairman of Vietnam Federation of Commerce and Industry (VCCI).
In particular, the Government issued Resolution No. 33, which outlines a number of solutions to remove obstacles and promote the safe, healthy and sustainable development of the real estate market.
In addition, the Prime Minister has also established a Prime Minister's Working Group and recently assigned specific tasks to each ministry, branch, and locality to carry out many tasks and solutions in the short and long term to remove obstacles and promote the safe, healthy, and sustainable development of the real estate market.
Along with that, the working group together with the Ministry of Construction, Ministry of Finance, State Bank of Vietnam and ministries, branches and localities have urgently and actively deployed and carried out assigned tasks and achieved some initial specific results.
However, the Chairman of VCCI also frankly acknowledged that, according to data compiled from the General Statistics Office and the Department of Business Registration - Ministry of Planning and Investment, real estate businesses are still facing many difficulties, and the number of newly established businesses operating in the real estate sector in the quarter decreased.
Specifically, in the first quarter of 2023, only 940 new enterprises were established, down 63.2% over the same period in 2022. In addition, the number of dissolved enterprises and enterprises temporarily ceasing business operations also reached 341 enterprises, up 30.2% and 1,816 enterprises, up 60.7% over the same period last year.
“Enterprises operating in the real estate business sector are currently facing many challenges and have to change their business and management plans such as debt restructuring, business restructuring, downsizing investment and production, streamlining the apparatus, and reducing the workforce. Many businesses have stopped implementing new projects, stopped issuing shares to increase capital, and some businesses have reduced their workforce by up to 50% to cope with the current difficult conditions,” the Chairman of VCCI shared.
Historic opportunity of real estate market
Besides legal issues, the Chairman of VCCI said that the policy system related to the land sector has many limitations, especially the 2013 Land Law, after nearly 10 years of application, has shown shortcomings when it has not kept up with or is not enough to control new situations in the real estate market.
Meanwhile, the Land Law regulates land ownership and land use, but in the process of organizing the implementation of the laws related to real estate, there are contradictions and overlaps. These contradictions and overlaps have caused difficulties in the organization of implementation, reduced the effectiveness and efficiency of legal regulations, leading to ineffective exploitation of land resources for socio-economic development.
The revised Land Law Project is expected to be passed at the 6th Session of the 15th National Assembly next October (Photo: Huu Thang).
Mr. Pham Tan Cong also said that the 2013 Land Law is currently being revised, has been discussed in two sessions of the National Assembly and may be passed in the next session. Recently, the National Assembly and the Government have organized to collect opinions from the people and the business community. The 5th session of the National Assembly also discussed and gave opinions for the first time on the draft Law on Housing (amended) and the draft Law on Real Estate Business (amended).
"Therefore, there will be a historic opportunity that all three most important bills for the real estate industry will be considered and passed by the National Assembly at the same session - the 6th Session in October 2023. These laws will directly impact the rights and interests of the people, as well as directly impact the real estate market, housing market and economy," Mr. Cong said at the Forum.
The Forum is expected to award the 2023 Livable Project certificate to real estate projects with fresh living space, close to nature, health care, and building environmental protection awareness for residents, which often creates great attraction for buyers.
The leaders of VCCI noted that for businesses with certified real estate products, being voted and honored in the Livable Project Program will be a great encouragement for businesses in the same industry to strive to do better in projects that will be developed in the future, thereby contributing to improving the quality of urban life.
“In particular, in the overall picture of the real estate market, I believe that the “Worth Living Project” Certification has created bright strokes for urban living spaces, while contributing to inspiring and orienting the development of civilized and modern urban areas in Vietnam,” Mr. Pham Tan Cong emphasized .
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