Official dispatch sent to the Minister of Finance, the Minister of Construction , the Minister of Natural Resources and Environment, the Governor of the State Bank of Vietnam, and the Chairpersons of the People's Committees of provinces and centrally-administered cities.
The official dispatch stated: In the past period, the Ministry of Finance , the Ministry of Construction, the State Bank of Vietnam, and other ministries, sectors, and localities have proactively and decisively implemented the directives and policies of the Government and the Prime Minister on strengthening access to credit capital and promoting the development of the corporate bond and real estate markets in an efficient, safe, healthy, and sustainable manner.
As a result, the corporate bond market has gradually stabilized, and the real estate market has seen positive changes. The State Bank of Vietnam has lowered the policy interest rate, directed banks to reduce costs, and lowered lending rates for all businesses, including those in the real estate sector; it has also implemented a credit program of approximately 120,000 billion VND for preferential loans to develop social housing, worker housing, and renovate and rebuild apartment buildings.
The Ministry of Construction has proactively and actively urged and guided the resolution of difficulties and obstacles in the implementation of real estate projects for localities and businesses, and actively urged localities to implement the "Investment in the construction of at least 1 million social housing units for low-income earners and industrial park workers in the period 2021-2030" project, promoting the effective operation of real estate exchanges and actively building an electronic real estate exchange model.
However, the corporate bond and real estate markets, although improved, have not met expectations; credit growth is low, the economy's ability to absorb capital continues to struggle, and bad debts tend to increase.
To continue implementing effectively, promptly, and decisively the Government and Prime Minister's directives on solutions to enhance access to credit, promote the development of the corporate bond and real estate markets in an efficient, safe, healthy, and sustainable manner, linked with the acceleration of social housing development, contributing to promoting production and business, boosting growth, controlling inflation, and ensuring major economic balances, the Prime Minister requests:
1. The Ministry of Finance shall preside over and coordinate with relevant agencies:
a) Continue to vigorously implement a rational, focused, and effective expansionary fiscal policy, coordinating synchronously, closely, and harmoniously with monetary policy to promote investment, especially non-state investment, boost public investment to serve growth, stabilize the macroeconomy, control inflation, ensure major balances of the economy, and promote the recovery and restoration of production and business activities of enterprises and people.
b) Urgently review and thoroughly assess the payment capacity of corporate bond issuers, especially those bonds due in late 2023 and 2024; proactively develop scenarios, assess impacts, and have specific and effective plans and measures to handle issues within their authority, contributing to ensuring the safety and security of the financial and monetary markets; preventing passive responses, surprises, and negative impacts on the rapid and sustainable development of the economy.
c) Closely monitor and accurately assess the payment capacity and plans of issuing enterprises, especially those facing difficulties and potential risks in debt repayment, in order to proactively take appropriate measures and solutions within their authority to stabilize the market, require enterprises to prioritize resources to fully fulfill their obligations as stipulated, ensure the legitimate rights and interests of investors and related entities, and maintain the safety and security of the financial and monetary market in accordance with current laws and regulations, and implement practical and effective solutions to consolidate, strengthen, and restore investor confidence, promoting the safe, transparent, healthy, and sustainable development of the corporate bond market.
d) Urgently review and assess the implementation of Decree No. 08/2023/ND-CP dated March 5, 2023, and related documents regulating the offering and trading of privately placed corporate bonds in the domestic market and the offering of corporate bonds to the international market; clearly assess the necessity and propose specific, appropriate, and timely plans, mechanisms, and policies in accordance with the law, as directed by the Government leaders in document No. 3580/VPCP-KTTH dated October 2, 2023, and report promptly to the Prime Minister, avoiding delays that could affect market development.
d) Urgently coordinate with the Ministries of Justice, Planning and Investment, the State Bank of Vietnam, and relevant agencies to review and comprehensively assess the legal regulations related to corporate bond issuance, clearly identify the necessity, propose specific plans and contents of legal documents that need to be amended or supplemented, decide within their authority, and if exceeding their authority, submit to the competent authority for decision and recommend the assignment of the lead agency, coordinating agencies, specific completion deadlines, and report promptly to the Prime Minister by early December 2023.
e) Proactively strengthen, within its authority, the state management of corporate bond issuance, especially combating corruption, abuse of policies for personal gain, and other unhealthy activities. Enhance close coordination, information sharing, and interconnected supervision; proactively monitor and implement appropriate, timely, and effective management solutions and measures according to assigned functions, tasks, and authority; strengthen inspection, examination, and comprehensive supervision of compliance with the law, preventing profiteering, group interests, corruption, and malpractice; strictly handle cases of violations and breaches of legal regulations; promptly report and propose to competent authorities on emerging issues beyond its authority; ensure the market operates according to market principles, in a healthy, safe, open, transparent, and sustainable manner.
g) Closely coordinate with relevant ministries and agencies to focus on effectively carrying out information and communication work, especially regarding the situation and development orientation of the State and the Government's directives on the corporate bond market; strengthen strict censorship, detect, prevent, and handle organizations, groups, and social information channels that spread distorted, inaccurate, and inciting information; promptly and strictly handle cases of violations of the law that disrupt security, order, and social safety.
2. The State Bank of Vietnam shall preside over and coordinate with relevant agencies:
a) Continue to implement decisively, effectively, and promptly the tasks and solutions in Resolution No. 01/NQ-CP dated January 6, 2023 of the Government, the Resolutions of regular Government meetings, Telegrams No. 990/CĐ-TTg dated October 21, 2023, Telegram No. 993/CĐ-TTg dated October 24, 2023 of the Prime Minister, the directives of Government leaders and legal regulations, closely monitoring market developments to manage monetary policy proactively, flexibly, promptly, and effectively, prioritizing the promotion of economic growth and effective credit growth associated with macroeconomic stability, inflation control, ensuring major balances of the economy, and the safety of the system of credit institutions; Managing monetary policy tools such as exchange rates, interest rates, and money supply in a coordinated, effective, and efficient manner is crucial to further addressing difficulties and meeting the economy's capital needs to the fullest extent possible, thereby promoting business production, creating jobs, and providing livelihoods for the people.
b) Manage credit growth rationally and effectively, striving to achieve the highest possible targets, improve credit quality, direct credit towards production and business sectors, priority sectors, and growth drivers of the economy (especially investment, consumption, exports, digital transformation, green transformation...), strictly control credit, and promptly, appropriately, and effectively handle areas with potential risks.
c) Closely monitor developments in the real estate market, corporate bonds, and real estate credit to implement solutions that both ensure the safety of the banking system and contribute to resolving difficulties, removing bottlenecks, promoting economic growth, and ensuring the healthy and sustainable development of the real estate and corporate bond markets.
d) Continue thorough research and develop feasible solutions for the decisive and effective implementation of the 120,000 billion VND credit program for lending to investors and homebuyers of social housing projects, worker housing projects, and projects to renovate and rebuild old apartment buildings; continue to promote the implementation of the 15,000 billion VND preferential credit package for the forestry and fisheries sectors; further enhancing the leading role of state-owned commercial banks and encouraging, motivating, and building appropriate and effective policy mechanisms to promote the active and creative participation of joint-stock commercial banks. Guide and create conditions for the Social Policy Bank to effectively implement preferential credit programs for the poor and other policy beneficiaries.
d) Urgently report to the Prime Minister in November 2023 on the results of implementing the VND 120,000 billion preferential loan program for the development of social housing, workers' housing, and the renovation and reconstruction of apartment buildings, as directed by the Prime Minister in Official Letter No. 6745/VPCP-CN dated August 31, 2023, from the Government Office.
e) Implement decisively, vigorously, and effectively solutions to facilitate access to credit for businesses and individuals, enhance the economy's capital absorption capacity, further strengthen connectivity, transparent information sharing, and mutual support between banks and businesses. Further accelerate administrative procedure reform, review and resolutely cut down outdated administrative procedures that are costly, cumbersome, and increase expenses for individuals and businesses. Continue to direct credit institutions to review and reduce operating costs, simplify lending procedures and conditions, and strengthen the application of information technology and digital transformation to further reduce lending interest rates; promote social responsibility, mutual support, and business ethics within the credit institution system; Effectively implement appropriate preferential credit packages from commercial banks in key sectors, drivers of economic growth, and in participating in the implementation of poverty reduction policies and ensuring social security.
g) Urgently review and assess the implementation of Circulars No. 02/2023/TT-NHNN, No. 03/2023/TT-NHNN, No. 06/2023/TT-NHNN, and other relevant circulars and regulations to proactively and promptly consider, amend, supplement, and issue new regulations, especially those mechanisms and policies that expire in 2023, in order to promptly resolve arising difficulties in practice, ensure synchronicity, effectiveness, and suitability to the actual situation, stabilize the monetary market, and ensure the safety of the credit institution system in accordance with the Government's resolution, the Government leaders' directives, and the provisions of the law. Absolutely avoid any disruption, lack of timeliness, or lack of proactiveness in the development, supplementation, and improvement of credit policies that are effective or will be effective in the long term and are appropriate to reality.
h) Directing continued review and implementation of practical and effective solutions, strengthening guidance, inspection, supervision, and instruction to commercial banks to facilitate easier access to credit for businesses, real estate projects, and homebuyers, and promptly address difficulties related to capital and cash flow. Promptly detecting and strictly handling commercial banks that add unrealistic or non-compliant conditions, causing difficulties and inconvenience for businesses, real estate projects, and homebuyers in accessing credit.
3. The Ministry of Construction shall preside over and coordinate with relevant agencies:
a) Continue to coordinate closely and effectively with agencies of the National Assembly and relevant agencies to review, revise, and finalize the draft Law on Housing (amended) and the draft Law on Real Estate Business (amended) for consideration and approval by the 15th National Assembly at its 6th session, ensuring feasibility, practicality, maximum removal of difficulties and obstacles, and strong development of a transparent, safe, and healthy real estate market; at the same time, proactively develop draft legal documents detailing and guiding the implementation of the above-mentioned Laws immediately after their approval by the National Assembly, and submit them to competent authorities for consideration and promulgation, ensuring they take effect simultaneously with the provisions of the Laws.
b) Continue to promote the role and responsibilities of the Head of the Prime Minister's Task Force, proactively and vigorously implement the Task Force's activities more decisively, strongly, and comprehensively, promptly guiding localities and businesses to resolve difficulties and obstacles to complete the legal framework of projects, and accelerate the progress of real estate projects, especially large-scale housing, urban area, and industrial park projects with a ripple effect and feasibility once difficulties and obstacles are resolved.
c) Proactively promote decentralization and delegation of authority to localities in handling administrative procedures, guide localities to improve professional skills, minimize processing time, and accelerate the progress of resolving administrative procedures related to real estate projects, especially procedures for preparing, appraising, and approving construction plans, urban plans, procedures for appraising design documents, and procedures for inspecting acceptance testing. Proactively strengthen inspection and supervision and have timely and effective solutions to overcome difficulties and challenges in the real estate market.
d) Strengthen inspection and supervision of the handling of administrative procedures related to real estate projects, promptly provide guidance on difficulties and resolutely handle cases that cause difficulties, inconvenience, and bureaucratic delays in resolving administrative procedures for citizens and businesses.
d) Closely monitor developments in the real estate market, proactively and promptly respond with policies or advise and propose to competent authorities appropriate, timely, and effective policies to promote market development; Direct localities to closely monitor the situation of projects, implementation progress, capital disbursement, and obstacles and difficulties in order to promptly coordinate with ministries and agencies to guide, resolve, and compile reports to the Prime Minister.
e) Continue to monitor, direct, urge, and guide localities and businesses to accelerate the development of social housing, and further promote the implementation of the Project "Investing in the construction of at least 1 million social housing units for low-income earners and industrial park workers in the period 2021-2030"; promptly report the results of implementation in November 2023 as directed by the Prime Minister in Official Letter No. 7176/VPCP-CN dated September 19, 2023.
4. The Ministry of Natural Resources and Environment shall preside over and coordinate with relevant agencies:
a) Continue to invest effort and coordinate closely with the Committees of the National Assembly and relevant agencies to finalize the draft Law on Land (amended), ensuring quality, promoting decentralization and delegation of power, cutting unnecessary administrative procedures, resolving obstacles and difficulties from practice, and ensuring consistency with the draft Law on Housing (amended) and the Law on Real Estate Business (amended).
b) Timely guide localities in resolving difficulties related to land allocation and leasing, especially in determining land prices, land management, and land use. Strengthen inspection and supervision of the procedures for determining land prices for real estate projects, promptly detect and resolutely handle cases that cause difficulties, inconvenience, bureaucratic delays, and show signs of violating the law.
5. People's Committees of provinces and centrally-administered cities:
a) To resolutely implement the tasks and solutions set forth in the Government's Resolutions and the Prime Minister's directives, closely coordinate with the State Bank of Vietnam and credit institutions in the area to effectively implement solutions to improve access to credit for people and businesses, and support businesses in developing production and business; strengthen information and communication work, and strictly handle cases of law violations that disrupt security, order, and social safety in the area.
b) Continue directing relevant agencies to focus on processing, resolving, and shortening the time required for procedures related to real estate projects, especially procedures for selecting investors; preparing, appraising, and approving planning; appraising designs, and granting construction permits, etc., with priority given to accelerating the progress of industrial real estate projects, social housing, and housing for workers. Resolutely prevent situations of bureaucratic delays, avoidance, shirking responsibility, delays, harassment, and corruption in handling administrative procedures that affect the progress of real estate projects.
c) Continue directing the Department of Natural Resources and Environment, the Department of Finance, and relevant agencies to focus on resolving and immediately addressing obstacles and delays in land allocation, land leasing, and land valuation. Consider and decide on land prices within their authority, in accordance with the law, and be held accountable to the Prime Minister if delays, negative practices, waste, or corruption occur that affect the progress of investment projects.
d) Expedite the preparation and approval of plans, especially construction plans, urban plans, and rural plans, as a basis for implementing real estate projects effectively, appropriately, synchronously, and modernly. Publicly announce the list of real estate projects that must select investors through bidding so that businesses have full information, can proactively research, and register to participate in investment in an open, transparent, equal, and competitive manner according to market principles.
d) Urgently and effectively implement the tasks specifically assigned in Decision No. 338/QD-TTg dated April 3, 2023, of the Prime Minister approving the Project "Investing in the construction of at least 1 million social housing units for low-income earners and industrial park workers in the period 2021-2030" and the VND 120,000 billion credit program for social housing construction projects, housing for workers, and renovation and reconstruction of apartment buildings.
6. Deputy Prime Minister Le Minh Khai is assigned to directly supervise, monitor, and handle matters within his authority; the Government Office shall regularly monitor and urge ministries, agencies, and localities to implement the tasks assigned in this Official Dispatch, and promptly report the situation and results of implementation to the Prime Minister on a quarterly basis.
NT
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