The real estate sector is one of the important sectors of the economy, closely related to many other industries and professions such as construction, finance, tourism, construction materials..., with the ability to spread to about 30-40 sectors.
According to statistics, the contribution of the construction and real estate industry to GDP in recent years is about 10%, of which the direct contribution of the real estate industry and indirect contribution through other sectors is estimated at about 4.5%.
Proposal to allow foreigners to use and buy and sell land in Vietnam. (Photo: MH)
However, at present, the real estate market is in a slump. On that basis, Mr. Doan Van Binh, Vice President of the Vietnam Real Estate Association, made 14 recommendations and proposals that could help the real estate market recover.
Firstly, in terms of institutions, Vietnam needs to make the most of international playgrounds. With the trend of signing more Free Trade Agreements (FTAs), this is very necessary. To better attract tourists to Vietnam in particular and ASEAN countries in general, it is possible to allow tourists to travel to one country easily to other countries in the region.
The second is to recommend allowing foreigners to be land users, creating conditions for foreigners to buy and own houses and tourist real estate according to the provisions of Vietnamese law, synchronizing the Land Law with the Housing Law and the Real Estate Business Law.
Third, according to the Real Estate Association, most countries in the world have mechanisms for developing special economic zones. There are even very attractive special economic zones that foreign businesses come to invest and develop. Therefore, if possible, Vietnam should consider developing some coastal economic zones into special economic zones.
Fourth, according to observations of infrastructure in the world, airports are not only places for travel but also places for shopping, entertainment and recreation. And most importantly, they become regional destinations. In particular, airports are money-making machines and bring tourists to the country. Therefore, if the upcoming Long Thanh airport can do this, it will be very good to attract more tourists and improve Vietnam's economic development.
In addition, the development of high-speed trains of only 200km/h is, in my opinion, a bit outdated, because many countries in the world, and closest to us is China, have considered having high-speed trains with speeds of 1,000km/h.
“Next is population and human resources. Many countries in the world have a lot of work but lack workers, and some people do not like to work. Therefore, we need to maintain a birth rate of more than 2 children to ensure resources,” said Mr. Binh.
Fifth, it is recommended that the State consider participating more directly in the provision of social housing (the State creates and owns social housing for rent in parallel with enterprises), creating a competitive market, following the market mechanism, diversifying segments, expanding the target audience, and being flexible in location. Adding support services to social housing is the service of providing jobs. Because only with jobs can there be income to pay for rent and purchase of social housing. Other services such as transportation services...
Mr. Binh said he went to Brunei, Singapore, and New Zealand to study. We have heard a lot about Singapore's HDB housing model.
The New Zealand model is also very good, social housing in New Zealand has 2 suppliers. The first is the state that builds social housing for rent and also creates conditions for private organizations to participate. In the market, the state provides about 65% of social housing, the remaining 35% is from 61 private developers.
Social housing of private developers has a rental price of 80% of the market price, the state subsidizes 20% of the rental fee for private enterprises. Thus, the state still operates, creates a competitive market, operates according to the market mechanism, importantly creates a level playing field for social housing, the location of the house can be anywhere, the social housing segments are also very diverse from mid-range to high-end.
“Through social housing models, it shows that the common point is that the Government participates more directly, operates by market mechanisms, does not distinguish between social housing or low-cost housing, and has a variety of locations,” Mr. Binh emphasized.
Sixth is digital transformation, we can learn from Singapore's model of a very smart city-state, digitizing traffic operations and administrative procedures.
Mr. Doan Van Binh, Vice President of Vietnam Real Estate Association. (Photo: RT)
Seventh, real estate data is also very important, like the US model, housing data from hundreds of years ago is still working very well.
Eighth, regarding the second home trend, Malaysia, Indonesia, and Cambodia are currently doing very well. We hope that competent state agencies will consider this to attract more investment resources.
Ninth is the land use rights exchange. In more than 10 international real estate associations that we have discussed, only a few countries have land banks to regulate land for farmers to produce agriculture and forestry, not to regulate the real estate market.
“We propose that we can merge the real estate trading floor and the land use rights trading floor. If possible, we will reduce administrative procedures and costs while still controlling the market,” said Mr. Binh.
The tenth is to build a regional and world financial center.
Eleventh is about investment trust funds (REITS), in the coming time VNREA will have recommendations related to these funds to provide sustainable capital sources for the market.
Twelve is about tourism, since August 15, Vietnam has issued online visas to all countries in the world, however many foreigners also reflected that the website name is not friendly and difficult to search for foreigners, we have also made recommendations for changes.
Thirteen is the planning of accommodation facilities. The model of China's Hainan Island is a very good model that our tourism industry does not have yet. For example, in Phu Quoc and Van Don, the supply is very abundant, but in the Mekong Delta, it is not yet available.
Finally, recommendations on the issue of foreigners buying real estate in Vietnam.
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