Many difficulties of the real estate market are still waiting to be 'resolved' by law

Illustration photo: Tuan Anh/VNA

This workshop was organized by the Vietnam Real Estate Association (VNREA) in coordination with the Ministry of Natural Resources and Environment and the Ministry of Construction on the afternoon of October 15 in Hanoi.

Dr. Nguyen Van Dinh - Vice President of Vietnam Real Estate Association (VNREA) commented that all 3 laws related to the real estate market (Land Law, Housing Law, Real Estate Business Law) this time have very detailed and clear regulations, especially in terms of decentralization and delegation of power. However, listening to many opinions of businesses, VNREA still expects the laws to quickly come into effect. Because many difficulties of real estate businesses are currently waiting to be resolved and untied.

"From August 1st to now, it has been just over 2 months since the laws have been in effect. This is not enough time for the new provisions of the law to be implemented quickly, especially when the provisions of the law are mostly very complicated. However, despite the complexity and many challenges, the laws must still be implemented and applied vigorously," Mr. Dinh suggested.

According to Mr. Dinh, currently, when approaching localities, VNREA finds that many places are still confused about law enforcement, so the rate of work being processed is very low. For example, in land clearance compensation projects, businesses reflect that they must pay 100% compensation before the land can be cleared. But this is very difficult, causing many projects to be hindered.

There are also other issues such as auctions, bidding, land use fees, etc. Therefore, VNREA hopes that in the coming time, the new provisions of the law will be disseminated and have specific instructions for quick implementation. This requires the attention and cooperation of relevant ministries.

One of the issues that many businesses are interested in and need to be answered is that according to the provisions of the Law on Real Estate Business, the transfer of a part of a project must be approved by the agency that decides on the investment policy to allow the transfer. If the transfer of a part of the project leads to a change (reduction) in the scale of the original project of the transferor by more than 10% or from 30 hectares or more, then it will be a case of having to adjust the investment policy decision according to the provisions of Clause 3, Article 41 of the Law on Private Land.

However, the enterprise raised the question, after being permitted by the investment policy decision-making agency to transfer a part of the project according to the provisions of the Law on Real Estate Business, does the transferor have to carry out procedures to adjust the investment policy according to the provisions of the Investment Law?

Regarding this content, Mr. Vuong Duy Dung - Deputy Director of the Department of Housing and Real Estate Market Management (Ministry of Construction) affirmed that in the transfer of part or all of a real estate project, there are 2 types of projects that need to be adjusted.

First, the type of project approved for investment policy and selected for investment according to the law on investment must carry out investment procedures. The conditions are still according to Article 40 of the Law on Real Estate Business. That is, all situations of transferring real estate projects must apply according to Article 40, whether applying according to the Law on Real Estate Business or the Law on Investment, or transferring real estate projects that are assets of credit institutions must also apply according to Article 40.

Next, when transferring a part or the whole project according to the Law on Real Estate Business, the transferee inherits all the regulations of the previous investor. If the project has no changes compared to before, there is no need to redo the investment procedures. In other cases where investment adjustments must be made in accordance with the law, the Investment Law must be followed, followed by the next steps related to the law.

"This issue is handled by two different systems and two different agencies, but it should be emphasized that when transferring according to the Law on Real Estate Business, the investor will inherit all legal documents (in Article 39 of the Law on Real Estate Business) and will not have to redo investment procedures if there is no change in investment policy," Mr. Dung analyzed.

Thus, the type of real estate business project that follows the policy of the Investment Law, now transferring that type of project will have to follow the Law on Real Estate Business. As for the project that follows the approval process under the Investment Law, now transferring the project and having a change in investment policy will follow the Investment Law.

Mr. Phan Duc Hieu - Standing Member of the National Assembly's Economic Committee said that the implementation of 4 laws including the Land Law, Housing Law, Real Estate Business Law and Investment Law is very important. There needs to be a team to implement these 4 laws because without clear implementation guidelines, these laws will face many difficulties in the process of application in practice. Just sitting and sharing and raising difficulties will not be effective, because each difficulty is under the authority of a different agency. Therefore, there needs to be close coordination between relevant parties to jointly remove difficulties for businesses and people.

Source: https://doanhnghiepvn.vn/kinh-te/nhieu-kho-khan-cua-thi-truong-bat-dong-san-van-cho-go-bang-luat/20241016071031584