According to the Ho Chi Minh City Real Estate Association (HoREA), in 2023, the Government, the Prime Minister, ministries, branches, the Government's Working Group, the Prime Minister's Working Group, and localities have focused their efforts on removing obstacles for the real estate market. Thanks to that, although still facing difficulties, the market 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 directives from the Government and the Prime Minister in 2023 that have not been fully implemented and made recommendations to promptly remove remaining obstacles in the coming time.
First of all, there are problems with land valuation to calculate land use fees and land rents to issue “pink books” to customers and for project investors to fulfill their obligations and responsibilities to the State and customers. To continue to resolve this issue, HoREA has proposed 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.
HoREA recommends that the Government continue to implement measures to "unblock" the market.
Next, 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, HoREA proposed to amend Point c, Clause 7, Article 31 of Decree 31/2021/ND-CP and related legal regulations 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.
HoREA also proposed 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 improve the corporate bond market to approach international standards.
In addition, HoREA recommends that the Ministry of Finance urgently submit to the Government to amend 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, it is recommended that competent state agencies strengthen control and strictly handle "enterprises with related-party transactions" that commit acts of "transfer pricing" and falsify costs to evade taxes.
To facilitate access to credit for people and businesses and effectively support the corporate bond market, 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.
Finally, 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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