Regulations on the mechanism to control investors in using mobilized capital

BTO-This morning, June 5, after a plenary meeting and listening to the report on the review of the draft Law on Credit Institutions (amended), the National Assembly held a group discussion on the draft Law on Housing (amended). Group 14 includes National Assembly deputies from the delegations of National Assembly deputies from Binh Thuan, Hai Duong, and Son La provinces.

Participating in giving comments, Deputy Head of the Provincial Delegation of National Assembly Deputies Nguyen Huu Thong proposed to adjust the terminology in Article 3, Clause 9: "workers' accommodation" to "accommodation in industrial parks and economic zones". Explaining, the delegate said that accommodation is not only for workers but also for laborers and experts working in industrial parks and economic zones. In addition, the draft law does not stipulate economic organizations with foreign investment capital and foreign organizations. Therefore, the delegate proposed to add these two definitions to Article 3 to avoid overlap. Regarding Article 5 regulating prohibited acts, at Point c Clause 9, delegate Nguyen Huu Thong proposed to change the content: "using an apartment for purposes other than residential purposes or using it for accommodation purposes for many people" to "using an apartment for purposes other than those specified in the apartment building project"...

11(2).jpg — Deputy Head of the National Assembly Delegation of Binh Thuan Province Nguyen Huu Thong discussed

Clause 6 stipulates prohibited acts including misuse of mobilized capital or prepaid housing purchase money for housing development. However, this draft law does not stipulate a mechanism for controlling the use of capital by investors while in reality, in many cases, investors use capital from project A to develop project B. Delegates believe that this is one of the reasons why investment projects have been slow to progress in recent times. Therefore, delegates propose to add regulations on the mechanism for controlling investors in the use of mobilized capital in the draft law...

National Assembly delegate of Bo Thi Xuan Linh province contributed comments on the subjects and conditions for owning houses in Vietnam. Article 10, point c, clause 1 stipulates: Subjects eligible to own houses in Vietnam include foreign organizations and individuals as prescribed in clause 1, article 19 of this law. According to the delegate, although the current law has provisions, in the past, localities only resolved cases of foreign organizations and individuals buying apartments; while the case of buying individual houses in projects was not implemented because the land use right certificate could not be issued, because the land law does not allow foreigners to receive land transfers. Therefore, the delegate suggested that the drafting committee should have specific regulations to help localities have a basis for implementation.

23(1).jpg — National Assembly Delegate of Bo Thi Xuan Linh province gives comments

Around Clause 5, Article 7 stipulates: In the areas of districts and cities belonging to special urban areas, urban areas of type I, II, III, investors of housing construction projects must build houses for sale, rent and lease-purchase. According to the delegate, the regulation as in the draft is very rigid for the business of dividing land into lots and selling them in type III urban areas. Therefore, the delegate proposed that in order to comply with the land law, the case of transferring land use rights in the form of dividing land into lots and selling them should not be regulated to require housing construction for type III urban areas.

Provincial National Assembly Deputy Tran Hong Nguyen said that, regarding the provincial housing development program and plan, the delegate agreed with the provisions in the draft Law. However, the development of the provincial housing development program and plan requires the participation of the provincial People's Committee to ensure housing conditions for local people, and at the same time, there needs to be a reasonable level of intervention, not excessive administrativeization, and too deep intervention leading to impacts on the development of the local real estate market.

12(2).jpg — Provincial National Assembly Delegate Tran Hong Nguyen gave his opinion

Delegates also proposed reviewing provincial housing development plans and programs, comparing them with other types of planning being implemented such as provincial land use planning and provincial planning to ensure harmony, unity, and no overlap or conflict, causing difficulties in the implementation process...

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