Novaland, Vinhomes propose a series of recommendations to remove difficulties for the real estate market

At the national online conference to remove difficulties and promote the safe, healthy and sustainable development of the real estate market on February 17, large enterprises in the real estate sector made many recommendations to help the market overcome this difficult period.

Needing support in terms of mechanism is the recommendation of Mr. Bui Thanh Nhon, Chairman of the Board of Directors of Nova Real Estate Group Joint Stock Company ( Novaland ). According to Mr. Nhon, after a series of difficulties due to the COVID-19 pandemic and fluctuations in the market, businesses hope that the Government will direct the State Bank to continue to support.

Mr. Bui Thanh Nhon proposed that the Government and the State Bank consider issuing a regulation allowing banks to extend, postpone and maintain the debt group for real estate projects for 2-3 years to help businesses have time to wait for the market to recover and complete the project's legal procedures. Mr. Nhon emphasized that timely assistance is very important to prevent 10-20% of the economy's outstanding debt from being converted to bad debt.

Mr. Bui Thanh Nhon proposed solutions to remove difficulties for the real estate market. Photo: Nhat Bac

In addition, legal problems of real estate projects are also a problem that, according to Mr. Nhon, "has existed for many years" but has not been resolved. Business representatives believe that legal problems need to be resolved at the root.

Presenting specific recommendations at the conference, Novaland leaders hoped that the Prime Minister would direct the selection of the Aqua City satellite urban area in Dong Nai province as a pilot project so that the Prime Minister's Working Group and the locality could resolve difficulties within 1 month.

Regarding Novanland, Mr. Bui Thanh Nhon said that this enterprise still has 25 trillion VND frozen at commercial banks. Of which, according to the credit conditions, about more than 10 trillion VND will be eligible for release when Novaland completes some legal procedures.

"If this problem is resolved within the next 1-2 months, Novaland will have capital to operate normally," said Mr. Bui Thanh Nhon.

Interest rates are also a major concern for real estate businesses today. Mr. Nhon said that interest rates have increased quite rapidly since the end of 2022, with some loans having interest rates increasing by nearly 30%. The business leader is concerned that if this increase continues, projects currently at the old interest rate will become losses at the new interest rate.

Novaland Chairman proposed that the Government, the State Bank, and commercial banks take measures to reduce deposit interest rates, thereby quickly reducing lending interest rates to restore the market.

In addition, Mr. Nhon also emphasized that the Decree amending Decree 65 on the issuance of individual corporate bonds has not yet been issued. He said that this is an important solution to remove difficulties for enterprises themselves as well as the bond market in general. Therefore, business representatives recommended that the Government issue it soon.

Mr. Bui Thanh Nhon also proposed that the Government's media agencies have a strategy to support rebuilding market trust in the direction of supporting "real people, real work" businesses that are creating good products for society, helping the market develop in a sustainable direction.

Mr. Pham Thieu Hoa, Chairman of the Board of Directors of Vinhomes Joint Stock Company, said that real estate businesses are facing difficulties in project legality, credit... Photo: Nhat Bac

Legal issues were also raised by Mr. Pham Thieu Hoa, Chairman of the Board of Directors of Vinhomes Joint Stock Company, at the conference, emphasizing that this is a "prominent" problem. In addition, there are difficulties in credit and scarce housing supply.

Mr. Pham Thieu Hoa acknowledged that supply and demand are out of sync, and corporate bonds cannot be issued. Meanwhile, real estate is an important sector related to many production and business sectors, directly and indirectly affecting the lives of workers, bringing in huge revenue for the state budget.

Going deeper into the housing supply, Mr. Hoa said that the demand for home ownership is currently very high, but the supply has not met it. And according to him, the demand is constantly increasing. On the other hand, facing difficulties in terms of law and capital, businesses have not been able to meet the actual demand.

"If the difficulties continue without timely solutions, many real estate businesses will have to close down and go bankrupt, and the already-lacking supply in the market will become even more scarce," Mr. Pham Thieu Hoa worried.

From these difficulties, the Chairman of the Board of Directors of Vinhomes Joint Stock Company proposed that the Government, ministries, and the State Bank join hands to help restore the real estate market, bringing long-term benefits to the people, the state, and businesses.

At the Conference, Deputy Minister of Construction Nguyen Van Sinh proposed a number of solutions to remove difficulties and promote the development of the real estate market.

Regarding institutional improvement: Complete and submit to the National Assembly for consideration and approval the Land Law (amended), Housing Law (amended), Real Estate Business Law (amended), Bidding Law (amended)......

Develop and submit to the Government for amendment and supplementation of Decrees guiding the implementation and procedures on Investment, Land, Urban Planning, Construction, Tax, Securities, etc.

Regarding promoting social housing development: Develop and submit to the National Assembly for consideration and promulgation a "Resolution of the National Assembly on piloting a number of policies to promote social housing development" to immediately remove a number of difficulties and obstacles.

Effectively implement the Project "Investing in the construction of at least 1 million social housing apartments for low-income earners and industrial park workers in the period of 2021 - 2030". Propose that the Government arrange a credit package of about 110,000 billion VND in the form of refinancing (similar to the 30,000 billion VND package that performed very well in the period of 2013 - 2016) to provide to commercial banks to lend to social housing projects and workers' housing.

Effectively implement Resolution No. 11/NQ-CP of the Government on the Socio-Economic Recovery and Development Program.

Regarding credit capital: Flexibly and synchronously manage financial and monetary policy tools, unblock credit capital flows to serve socio-economic development; Perfect policies to maximize the mobilization of domestic and foreign financial resources for housing and market development.

Manage appropriate credit limits; extend principal and interest payments for real estate businesses facing difficulties (businesses, real estate projects serving consumption, production, industry, tourism, resorts, etc.); at the same time, create conditions for businesses, home buyers and investors to access credit capital.

Regarding bond capital sources: Research and amend legal regulations to remove difficulties and obstacles and create conditions for businesses to mobilize capital on the stock market and issue bonds.

Control capital mobilization activities in the stock market to avoid speculation, manipulation, and price inflation. Monitor compliance with laws on issuance, investment, and provision of services on corporate bonds.

Source: https://nld.com.vn/thoi-su/novaland-vinhomes-neu-loat-kien-nghi-go-kho-cho-thi-truong-bat-dong-san-2023021710501238.htm