"Solving difficulties" in the real estate market
Recently, the Ho Chi Minh City Real Estate Association (HoREA) has just issued a document requesting the implementation of the direction of the Government and the Prime Minister in 2023, but it has not been implemented by the Ministries and branches related to the real estate industry.
HoREA recommends that the Prime Minister consider directing the early issuance of a "Decree amending and supplementing a number of articles of Decree No. 44/2014/ND-CP regulating land prices" to remove obstacles in land valuation.
According to HoREA, in 2023, the Government, the Prime Minister, ministries, branches, the Government's Working Group, the Prime Minister's Working Group, together with localities, have focused great efforts to "resolve difficulties" in the real estate market, contact businesses facing difficulties and obstacles to join hands to remove difficulties for the real estate market to develop safely, healthily and sustainably.
Thanks to that, the current real estate market, although still very difficult, has passed the "bottom" and is in the process of gradually recovering and can develop more steadily from the second half of 2024 onwards.
However, HoREA found that there are still some issues and directives from the Government and Prime Minister in 2023 that have not been fully implemented by ministries and branches to help this market develop stably and sustainably.
6 issues to be resolved
The first issue, according to HoREA, is related to a hot and controversial issue that has been delayed more than once compared to the Prime Minister's direction: land prices.
Accordingly, HoREA recommends that the Prime Minister consider directing the early issuance of a "Decree amending and supplementing a number of articles of Decree No. 44/2014/ND-CP regulating land prices" to remove obstacles in land valuation to calculate land use fees and land rents for hundreds of real estate and commercial housing projects to ensure no loss of state budget revenue, to issue "pink books" to customers and for project investors to fulfill their obligations and responsibilities to the State and customers.
The second issue proposed by HoREA is related to amending Point c, Clause 7, Article 31 of Decree 31/2021/ND-CP and related legal provisions to implement Resolution 33/NQ-CP dated March 11, 2023 of the Government and in accordance with Resolution No. 98/2023/QH15 of the National Assembly on piloting a number of specific mechanisms and policies for the development of Ho Chi Minh City, to remove obstacles in the investment sector, including the procedure of "approving investment policies at the same time as approving investors" for social housing projects, commercial housing projects and for general application nationwide.
The third issue proposed by HoREA is to extend Clause 1, Article 3 of Decree No. 08/2023/ND-CP by 12 months until December 31, 2024 instead of expiring on December 31, 2023 to gradually perfect the corporate bond market to approach international standards.
The fourth issue that HoREA recommended to the Ministry of Finance is the urgent need to submit to the Government an amendment to Decree 132/2020/ND-CP in the direction of proposing not to control the "ceiling" of total interest expenses "not exceeding 30% of the total net profit from business activities in the period" of "domestic enterprises with related-party transactions" to honestly, fully and promptly reflect the "picture" of investment, production and business activities of enterprises; at the same time, request competent state agencies to strengthen control and strictly handle "enterprises with related-party transactions" that commit acts of "transfer pricing" and falsify costs to evade taxes.
Fifth issue, HoREA recommends that the State Bank review and evaluate the implementation of Circular No. 02/2023/TT-NHNN, Circular No. 03/2023/TT-NHNN, Circular No. 06/2023/TT-NHNN and related Circulars and regulations as requested by the Prime Minister in Official Dispatch 1177/CD-TTg dated November 23, 2023 in the direction of amending, supplementing or abolishing inappropriate regulations to facilitate access to credit for people and businesses and effectively support the corporate bond market. Previously, regarding this issue, it is known that HoREA had made detailed recommendations in Document 162a/2023/CV-HoREA dated November 19, 2023.
Sixth issue, HoREA recommends that the Government coordinate with the National Assembly Standing Committee to propose that the National Assembly consider extending Resolution No. 42/2017/NQ-QH14 by 12 months until December 31, 2024 to create conditions for credit institutions to effectively handle bad debts, including handling collateral assets of real estate projects.
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