Recently, some banking experts said that Vietnam should not create specific policies for the real estate sector.
Regarding this issue, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA) said that not creating a specific policy for the real estate sector is right for real estate businesses, but it is only right in the case that the economy operates and develops under normal conditions, not affected by unusual incidents such as pandemics or geopolitical conflicts, global supply chain disruptions like the past 3 years.
HoREA believes that the idea that there should not be a specific policy for the real estate sector is not really correct. (Photo: PO)
According to Mr. Chau, regarding the real estate market, Clause 5, Article 7 of the Law on Real Estate Business 2014 and 2023 stipulates that the state has policies to regulate the real estate market, ensuring the real estate market develops healthily, safely and sustainably.
This is also specifically demonstrated in Resolution 02/NQ-CP dated January 7, 2013 of the Government with a preferential credit package of 30,000 billion VND with focused, key, and targeted support, which has helped the real estate market overcome the frozen period from 2008-2013 and recover since 2014.
Or from 2022 to now, the State has had many very practical support policies for people and the business community to restore and develop the socio-economy , including the real estate market.
According to Mr. Chau, the real estate sector also includes real estate development activities that are not for business purposes, or not primarily for business purposes, such as enterprises implementing social housing projects, housing projects for workers in industrial parks, housing projects for armed forces, resettlement housing projects, renovation and reconstruction projects of apartment buildings, flood-proof housing projects, areas frequently affected by natural disasters and climate change.
“The State has preferential policies for these projects, including credit incentives, similar to the State Bank's preferential credit policies for five priority areas for businesses to operate in,” said Mr. Chau.
On that basis, Mr. Chau said that the interviewer's opinion that there should not be a specific policy for the real estate sector is not really correct. Therefore, the Chairman of HoREA continued to recommend that the Government and the State Bank consider having specific policies for the real estate market at this time.
For example, HoREA proposed that the State Bank consider expanding a number of subjects eligible for loans from the VND120,000 billion credit package, including investors and home buyers of commercial housing projects with selling prices not exceeding VND3 billion/unit, and giving priority to first-home buyers.
Or HoREA proposes that the State Bank consider guiding credit institutions to consider implementing some solutions such as for projects that have had a Decision approving the investment policy at the same time as approving the investor, commercial banks can lend credit to investors to compensate for financial expenses with the loan not exceeding 30% of the total investment of the project.
For projects that have construction permits and have started construction, the Association recommends that commercial banks may consider lending to investors to pay for and cover project implementation costs and business activities with the loan amount not exceeding 50% of the total investment of the project;...
Previously, Dr. Nguyen Quoc Hung, Vice Chairman and General Secretary of the Vietnam Banking Association, said that real estate business is a field facing many difficulties, real estate businesses need sharing and support to remove and overcome difficulties together, but that does not mean creating a specific policy or special benefits for this business field, in which there are no poor people or low-income people who benefit. Demanding special benefits for real estate is unreasonable.
Furthermore, real estate credit is a high-risk sector, so it needs to be strictly controlled. Therefore, the question here is why is it necessary to lower lending standards when the economy is still facing many difficulties, and it is necessary to allocate investment capital to other priority sectors and industries such as import and export, aquaculture... or some priority sectors such as green growth,...
The rampant investment in real estate as in recent times has been and is showing its irrationality. Banks cannot follow that money flow. Therefore, there is no such thing as loosening for a specific field. All conditions and principles must be guaranteed.
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