Provinces and cities remove obstacles in the real estate sector.

Immediately following the conference "Removing obstacles and promoting healthy and sustainable real estate market development" chaired by Prime Minister Pham Minh Chinh , last weekend, the Ho Chi Minh City People's Committee sent invitations to 6 businesses with 7 real estate projects facing procedural difficulties in the city to attend a meeting to resolve these issues, scheduled to take place today, February 20th.

Uninstall each project

The meeting was chaired by Vice Chairman of the Ho Chi Minh City People's Committee Bui Xuan Cuong, with the participation of leaders from various departments, the People's Committees of districts and communes, Thu Duc City, the Ho Chi Minh City Tax Department, and investors of real estate projects. Notably, each investor will take turns presenting the obstacles of their projects to city leaders and relevant departments, with approximately 30 minutes allocated for each project.

Previously, speaking at an online conference chaired by the Prime Minister on February 17th, Vice Chairman of the Ho Chi Minh City People's Committee Bui Xuan Cuong stated that the city would focus on resolving legal obstacles for real estate projects that are behind schedule, projects that have not paid land use fees, and projects where investors are delayed in obtaining land use rights certificates, house ownership certificates, and certificates of ownership of assets related to the interests of the people. Ho Chi Minh City will establish a task force to address the difficulties and obstacles of real estate projects using land and those not using state capital; and will collaborate with businesses and real estate associations to resolve issues on a thematic basis.

Not only Ho Chi Minh City but also several other localities are actively directing their departments and agencies to focus on resolving obstacles for real estate businesses. Speaking with a reporter from the Nguoi Lao Dong newspaper on February 19th, Mr. Tran Viet Truong, Chairman of the People's Committee of Can Tho City, said that he had just directed relevant departments and agencies to address difficulties in the real estate market and housing development.

Specifically, Mr. Truong requested that departments and agencies review and expedite the progress of commercial housing projects, social housing projects, worker housing projects, and real estate development projects. This includes identifying project investors who have not yet started or are behind schedule in implementation, assessing the specific causes, and proactively addressing difficulties and obstacles to accelerate project progress. The Department of Construction, in particular, should actively implement the plan for renovating and rebuilding apartment buildings in the area.

"The State Bank of Vietnam - Can Tho City Branch closely monitors and supervises credit in the real estate sector, directing credit institutions to prioritize lending for investment in social housing projects, worker housing... The Can Tho City Real Estate Association encourages real estate businesses to proactively restructure product segments, prices, payment terms, and payment methods to suit and facilitate customers and people, especially those with genuine housing needs," Mr. Tran Viet Truong requested.

At a higher level, relevant ministries and agencies are urgently drafting a Government Resolution on solutions to address and promote the healthy and sustainable development of the real estate market, with many solutions such as extending the repayment period for principal and interest on loans for struggling real estate businesses; continuing to provide credit for projects with feasible loan plans; focusing on resolving obstacles for ongoing projects to ensure their early completion and create supply for the market; and removing difficulties related to credit and bond sources... to unblock capital flows and create liquidity for the market.

A stalled real estate project in the heart of District 1, Ho Chi Minh City. (Photo: Tan Thanh)

Restoring confidence in the market.

Speaking to a reporter from the Nguoi Lao Dong newspaper following the decisive actions taken by the Government and local authorities, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), said this is good news for real estate businesses. After all the efforts and recommendations, the Government, ministries, and local authorities have understood the difficulties and obstacles, and they are being actively addressed.

"I am truly pleased and commend the localities, because more than anyone else, they must sit down with businesses and project investors to resolve each specific obstacle. As far as I know, the meeting between Ho Chi Minh City leaders and businesses to resolve each project is just the first step. Next, the city will continue to hold meetings with departments and agencies to resolve larger obstacles, including those related to social housing, commercial housing, and many other issues... A typical example is the social housing project of Le Thanh Trading and Construction Co., Ltd. to ensure its early implementation," Mr. Chau expressed.

As an insider, Mr. Le Huu Nghia, General Director of Le Thanh Construction and Service Co., Ltd., said he eagerly awaits the city's removal of obstacles for social housing projects so that businesses will be motivated to continue participating in this segment. He explained that the profit margin for social housing development is not high, and if legal procedures are prolonged, costs increase, and profits disappear, businesses will no longer want to participate. "I hope the city leaders will decisively address the obstacles for all social housing and commercial housing developers so that the real estate market can be truly healthy and stable," Mr. Nghia stated.

While also expressing his welcome for Ho Chi Minh City's decisive action, Mr. Tran Khanh Quang, General Director of Viet An Hoa Company, argued that the long-standing legal obstacles should have been addressed proactively by local authorities coordinating with investors to resolve them early, rather than waiting for the Prime Minister's directive before implementation.

However, better late than never, the government's decisive actions during this period are a positive sign, offering hope to businesses and contributing to increased confidence among buyers and the real estate market.

"In the future, if obstacles related to land use fees and legal procedures for the project are quickly resolved, it will provide a basis for the investor to transfer the project, thereby generating cash flow and increasing liquidity for the business itself during the current period of drastic restructuring," Mr. Quang expected.

The first projects

Seven projects will be discussed at a meeting between Ho Chi Minh City leaders and six businesses on February 20th, including: the Ben Nghe Street commercial center and high-end apartment project in Tan Thuan Dong ward, District 7; the Tan Thang Sports and Residential Complex project in Tan Ky ward, Tan Phu District; the Cuu Long apartment project at 1 Ton That Thuyet Street, Ward 1, District 4; the Song Viet complex project at plot 1-7, Thu Thiem New Urban Area, Thu Duc City; the Thien Ly housing project in Phuoc Long B ward, Thu Duc City; the 30.2-hectare project in Binh Khanh ward, Thu Duc City; and the Co Giang apartment project in Co Giang ward, District 1.

Source: https://nld.com.vn/kinh-te/cac-tinh-thanh-go-vuong-bat-dong-san-20230219212640969.htm