Outstanding corporate bonds issued privately by real estate enterprises as of March 2024 is VND 350,876 billion.
Outstanding real estate corporate bonds are nearly 350,880 billion VND
The Ministry of Finance has just issued report No. 3768/BTC-QLCS on the implementation of policies and laws on real estate market management and social housing development from 2015 to the end of 2023, sent to the Economic Committee of the National Assembly.
Accordingly, in the period 2015 - 2023, 330 real estate enterprises issued individual corporate bonds in the domestic market with a total issuance value of more than VND 726,335 billion, the average issuance term reached 3.69% per year, the average issuance interest rate reached 10.15% per year. The outstanding balance of individual corporate bonds issued by real estate enterprises by March 2024 is VND 350,876 billion.
In addition, in the period 2015 - 2023, 4 real estate enterprises issued individual corporate bonds to the international market with a total volume of 2.18 billion USD.
According to current regulations, the system of tax, fee and charge policies for real estate in the past has basically covered all real estate-related revenues arising in all 3 stages.
These include establishing ownership and use rights of real estate; using, exploiting real estate and transferring the real estate market in a transparent and sustainable manner, creating a stable source of income for the state budget.
Specifically, personal income tax revenue from real estate transfer activities from 2017 to 2023 increased over the years. In 2018, it increased by 19.82%, in 2019 it increased by 11.44%, in 2020 it increased by 12.22%, in 2021 it increased by 30.4% and the highest was in 2022 with an increase of 64.34% compared to the revenue in 2021. In 2023, localities still focused on preventing tax losses from real estate transfer activities, however, due to the fact that the real estate market is in a very difficult time, purchasing power and liquidity have decreased sharply, there is a lack of cash flow; lack of housing supply associated with an unreasonable housing product structure... so the number of transactions in the market has decreased.
Also during this period, the Ministry of Finance inspected 19 units with real estate business lines. The amount of money the inspection agency recommended for financial handling was mainly related to land use fees, under-declaration of value-added tax, corporate income tax, personal income tax, incorrect determination of preferential tax rates, etc.
In the list of 13 enterprises in the real estate business sector, 1,182.8 billion VND was recommended; of which 255.7 billion VND was recommended to be paid to the state budget, and 999.8 billion VND was recommended to be handled in other financial matters. These enterprises include: Hanoi Housing Development and Investment Corporation (Handico), Kosy Joint Stock Company, 319 BQP Corporation, Viglacera Corporation, Song Da Corporation, Hanoi Housing Development and Investment Corporation, UDIC Infrastructure Development and Investment Corporation, Hanoi Construction Corporation (Hancorp), Housing and Urban Development and Investment Corporation (HUD) owes more than 8.2 billion VND, IDICO Corporation-CPC, Industrial Park Development Joint Stock Corporation, Industrial Development and Investment Corporation - CP (Becamex Binh Duong) ....
By December 31, 2023, 13 inspected real estate businesses had basically seriously implemented the recommendations and paid the budget. Only a few businesses had not completed the implementation due to problems in determining land use value, allocating technical infrastructure costs, transferring assets, etc., leading to delayed settlement and delayed implementation of related financial obligations.
In addition, the authorities also recommended 6 real estate businesses to be inspected in the field of administrative inspection; including notable names such as: Trainco Binh Dinh Company Limited, 578 Construction and Investment Joint Stock Company, Petroleum Real Estate Joint Stock Company... The total amount of tax proposed to be collected and paid to the budget is 237.4 billion VND (mainly in the declaration and underpayment of taxes such as: value added tax, corporate income tax, personal income tax, incorrect determination of preferential tax rates...).
The Ministry of Finance also said that by December 31, 2023, inspected units and enterprises with real estate business activities had basically seriously implemented the recommendations (paying the budget over 236 billion VND).
Manage and monitor real estate business operations
Regarding the implementation of social housing development, the Ministry of Finance said that the revenue from land use fees and land rental fees is entirely left for the local budget. Currently, the medium-term public investment capital plan for the period 2021-2025 has been assigned by the Government to ministries, branches and localities. According to the provisions of the Law on Public Investment, the Ministry of Planning and Investment is the unit in charge of developing investment plans and synthesizing and submitting to competent authorities to assign medium-term and annual public investment plans to ministries, central agencies and localities; therefore, to arrange capital for social housing construction and implement social housing policies in general; the Ministry of Finance only coordinates and gives opinions to units when requested.
Recently, we have not received any documents from the Ministry of Construction requesting coordination in directing, monitoring, and guiding the determination of rental prices, purchase prices, and selling prices of social housing, and in managing prices for social housing management and operation services.
The Ministry of Planning and Investment has not allocated resources to compensate for interest rate differences for credit institutions designated by the State; therefore, these credit institutions have not yet implemented lending under the Program under Decree No. 100/2015/ND-CP on development and management of social housing with many regulations on social housing development; preferential loans to implement social housing policies; management and use of social housing.
The Ministry of Finance believes that in order for real estate businesses to absorb new sources of capital, market problems must be thoroughly resolved. In addition, in addition to familiar financial sources such as bank credit and corporate bonds, there should be mechanisms and policies to develop, attract, and ensure effective operation of capital sources from other financial products (real estate investment funds; housing savings funds, real estate securitization, etc.), or other channels (direct and indirect foreign investment). At the same time, in addition to protecting individual investors in the risky financial market, authorities need to have policies to protect legitimate real estate businesses.
The Ministry of Finance also recommends continuing to synthesize difficulties in applying related legal policies including the Land Law, Housing Law, and Real Estate Business Law, and finding solutions to create a legal framework for real estate business activities and enhance the effectiveness of market management.
At the same time, to closely manage and monitor the operations of real estate enterprises, ensure financial capacity is appropriate for the implementation of licensed projects to minimize risks for the real estate business sector, it is necessary to study and supplement regulations when establishing real estate enterprises or granting construction permits, investing in real estate projects to ensure that enterprises must have sufficient financial capacity to implement the project.
In addition, the Ministry of Construction strengthens management of the real estate market to develop stably, sustainably and transparently; closely monitors the granting of construction permits, licensing of project openings, trading activities of real estate trading floors, and anti-money laundering in the real estate sector...
According to PV/VTV
Source: https://doanhnghiepvn.vn/kinh-te/hon-350-000-ty-dong-du-no-trai-phieu-doanh-nghiep-bat-dong-san/20240510010953948
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