Prime Minister Pham Minh Chinh has just signed Official Dispatch No. 993/CD-TTg dated October 24, 2023 on continuing to resolutely implement solutions to develop a safe, healthy, and sustainable real estate market, contributing to promoting socio-economic development.
Urgent task
In the telegram, the Prime Minister requested ministries, branches and localities to resolutely and effectively implement the tasks and solutions assigned in Resolution No. 33/NQ-CP and other directives of the Government and the Prime Minister. The Prime Minister emphasized that this must be considered one of the urgent and important tasks that need to be focused on solving according to the principle that the problem falls under the authority of whichever level, that level must solve it, without avoiding, pushing, fearing mistakes or fearing responsibility.
The Prime Minister requested localities to review and count the number of real estate projects being implemented in the area; classify projects facing difficulties and obstacles; proactively work directly with each enterprise and each project facing difficulties or slow implementation to clearly identify the causes, promptly remove difficulties and obstacles within their authority; summarize difficulties and obstacles beyond their authority and send them to the Prime Minister's Working Group for consideration and resolution or report to competent authorities for timely consideration and decision.
Some real estate projects being implemented in Ho Chi Minh City. Photo: TAN THANH
Deputy Minister of Construction Nguyen Van Sinh said that recently, the Prime Minister's Working Group on removing difficulties and obstacles for real estate projects has received 130 documents reporting difficulties related to 183 projects nationwide. "20 projects will be focused on removing in the third quarter of 2023. The Working Group also has regular exchanges, even working directly with localities to completely resolve the issues in the spirit of urgently removing obstacles for the projects so that the projects can be implemented" - Mr. Sinh said.
According to the Ministry of Construction, localities and social housing project investors are focusing on implementing a support package of VND120,000 billion. Currently, 20 provinces and cities (Ba Ria - Vung Tau, Tra Vinh, Bac Giang, Tay Ninh, Ho Chi Minh City, Da Nang, Binh Dinh, An Giang, Phu Tho, Bac Ninh, Hau Giang, Binh Duong, Lang Son, Lam Dong, Hanoi, Thai Binh, Hai Phong, Hai Duong, Kien Giang, Binh Thuan) have announced a list of 52 projects eligible for loans under the support package with a loan demand of VND25,884 billion. "Up to now, a number of social housing projects in localities have been disbursed with capital of about 83 billion VND out of the limit of 1,095 billion VND, specifically: Minh Phuong Company in Phu Tho province was disbursed 23.7 billion VND; Kinh Bac Company in Bac Ninh province was disbursed 46 billion VND; the joint venture of Hanoi Housing Joint Stock Company No. 6 and Global Consulting Joint Stock Company in Hanoi City was disbursed 13.4 billion VND" - said the Ministry of Construction.
Quickly remove legal obstacles
According to Chief of Office of the Ministry of Construction Dau Minh Thanh, in the last 3 months of 2023, the Ministry of Construction will focus on implementing tasks in the Action Program to implement Resolution No. 11/NQ-CP of the Government, including the project "Investing in the construction of at least 1 million social housing apartments for low-income people and industrial park workers in the period of 2021 - 2030". The Ministry of Construction will coordinate with localities to review land funds and promote the development of social housing, housing for industrial park workers in the area, and renovate old apartment buildings. "The Ministry will urgently carry out the tasks assigned in Resolution No. 33/NQ-CP such as perfecting institutions, promoting social housing development, capital sources, and communication information to support the market" - Mr. Thanh said.
The Ministry of Construction will also coordinate with the State Bank and the Vietnam Bank for Social Policies to effectively implement the VND 120,000 billion support package under Resolution No. 33/NQ-CP of the Government and the credit support package under Resolution No. 11/NQ-CP of the Government on the Economic Recovery Program. At the same time, review and study the report to the Government and the Prime Minister to propose contents that need to be amended in Decree No. 100/2015/ND-CP to promote the development of social housing; urgently study and amend Circular No. 09/2021/TT-BXD on the development and management of social housing...
"Proactively coordinate with relevant agencies to continue researching and perfecting the draft Law on Housing (amended), the draft Law on Real Estate Business (amended), ensuring the consistency, unity and feasibility of the legal system, especially the Law on Land (amended) when passed at the 6th session" - Mr. Thanh said.
Economist - Dr. Can Van Luc said that the contents of the Prime Minister's urging telegram have actually been and are being implemented by ministries and branches. The published figures show that the market is making positive progress. Capital flows into real estate are flowing steadily as credit for this sector has increased by nearly 5%, equivalent to the growth rate of the entire economy, with real estate business credit alone increasing by 18%. "The current problem is that market demand is still weak, especially housing credit demand of individual customers in the context of decreasing income and high interest rates" - Dr. Can Van Luc said.
Chairman of the Ho Chi Minh City Real Estate Association, Mr. Le Hoang Chau, emphasized that Official Dispatch 993 is a boost, demonstrating the determination and resoluteness of the Government, ministries, branches and localities in solving difficulties for the market and real estate businesses.
According to Mr. Le Hoang Chau, the biggest obstacle in the real estate market today is the legal issue, so ministries, branches and localities need to focus on removing this obstacle. When the legal issue is cleared, the project bottlenecks will be cleared, which will help increase liquidity in the market. From there, it will facilitate lending and real estate transactions.
To quickly resolve these problems, Mr. Chau suggested that localities should quickly classify the problems of the project in the area to have specific solutions. Any problems beyond the authority of the locality need to be coordinated with the Prime Minister's Working Group to promptly resolve.
Many problems about social housing
At the supervision meeting of the Ho Chi Minh City People's Council on the implementation of social housing projects in Ho Chi Minh City in the period of 2016-2025 held on October 25, Mr. Pham Dang Ho, Head of the Department of Housing Management and Real Estate Market - Ho Chi Minh City Department of Construction, pointed out a series of shortcomings and obstacles in implementing social housing projects in the area. Specifically, the compensation and site clearance work at some projects is very difficult, prolonged, the project progress is slow, and even cannot be implemented.
For commercial housing projects with a scale of over 10 hectares, although the land fund of 20% for social housing construction has been identified, the investor is slow to implement compensation, site clearance or invest in technical infrastructure, so construction cannot be carried out.
The city has not yet allocated land funds for social housing development in a number of urban construction planning projects; land use planning and plans... affecting the proactive preparation of land funds to implement the long-term, fundamental social housing program.
To promote social housing projects in the coming time, Mr. Pham Dang Ho said that it is necessary to issue specific solutions and shorten administrative procedures in investment procedures. When preparing and approving the project to adjust the general planning of Ho Chi Minh City to 2040, with a vision to 2060, there will be planning for social housing and workers' accommodation. This is to facilitate the investment stages of social housing in the future.
Another important issue is to record public investment capital to implement state-owned social housing projects for use by those receiving salaries from the state budget. In addition, the Department of Construction proposed to study and develop a project to form a housing savings fund to create investment capital for social housing construction from the very subjects in need.
Mr. Le Truong Hai Hieu, Head of the Economic - Budget Committee of the Ho Chi Minh City People's Council, supported the establishment of this savings fund. According to him, the most difficult thing about public investment is capital and cited the clean land in Hiep Thanh Ward, District 12, which is still waiting for public investment capital to build social housing.
Mr. Huynh Hong Thanh, Deputy Head of the Urban Committee of the Ho Chi Minh City People's Council, is impatient because there has been no announcement yet about separating the land use fee equivalent to the value of the 20% land fund for social housing construction in commercial housing projects to have capital to implement social housing projects. For example, the land in Hiep Thanh Ward, District 12 has completed the infrastructure but is still waiting for capital. Meanwhile, some units are shirking responsibility for determining the amount of money to make an estimate for social housing construction from the capital collected from commercial housing projects.
In her concluding remarks, Ms. Nguyen Thi Thanh Van, Head of the Urban Committee of the Ho Chi Minh City People's Council, said that in the process of implementing the social housing project, there were many difficulties and problems that have not been thoroughly resolved. In particular, the coordination between units is not close enough to support and create conditions for other units to perform the task. Ms. Van requested that the units seriously rectify and acknowledge their responsibilities so that they can coordinate better in the future. Quoc Anh
(To be continued)
Source: https://nld.com.vn/kinh-te/khan-truong-go-kho-cho-bat-dong-san-20231025221251361.htm
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