Resolution No. 68-NQ/TW on private economic development: Promoting breakthrough development of the real estate market

Creating breakthrough opportunities for real estate businesses

Real estate enterprises are a particularly important force in the private economic sector, playing a leading role in many key areas such as urbanization, infrastructure, industry, trade, tourism and services. In 2023, this group of enterprises ranked second in the country in terms of budget contribution, with a total payment of more than 37,000 billion VND; revenue from taxes, transaction fees and real estate projects also accounted for a large proportion of the budgets of many localities.

However, according to the Vietnam Association of Realtors (VARS), the market is facing many obstacles, causing difficulties for businesses and undermining investor confidence. Many projects are stalled due to cumbersome and overlapping legal procedures; prolonged approvals; slow site clearance and issuance of red books... This situation not only slows down the development speed but also causes "congestion" in the supply in the market.

In that context, Resolution No. 68-NQ/TW of the Politburo is considered a turning point, creating a more open, transparent and effective legal corridor for private enterprises - including real estate enterprises. VARS expects that the specific directions and tasks in the Resolution will remove legal bottlenecks, creating a boost for recovery and breakthroughs for the market in the medium and long term.

Notably, the Resolution sets out a series of specific targets: by 2025, to cut at least 30% of administrative procedure processing time, 30% of legal compliance costs, and 30% of business conditions - and will continue to streamline further in the following years; these are considered strong moves to remove obstacles for businesses, increase transparency, reduce costs and shorten project implementation time.

In addition, the Resolution requires controlling land price fluctuations - especially land for production, business and non-agricultural purposes - to ensure stability for investment activities. At the same time, it aims to complete the construction of the National Land Database by 2025, connecting with the National Data Center and related systems, moving towards electronic transactions and publicizing land information for businesses.

The resolution also emphasizes the need to focus on removing difficulties and obstacles for projects with procedural problems and slow progress; and put into use wasted land resources, public land, unused agency headquarters, and land in long-standing disputes.

A positive new point is that Resolution 68 encourages the development of green credit and sustainable finance. The State will have a mechanism to support interest rates, creating conditions for real estate businesses to access capital at more reasonable costs when investing in green, circular projects that comply with ESG (environmental - social - governance) standards.

Removing the “bottleneck of the bottleneck”

VARS Chairman Nguyen Van Dinh assessed that the above points have gone straight to removing the "bottleneck of the bottleneck". The implementation of the tasks and solutions in Resolution No. 68-NQ/TW, combined with the policy of merging and streamlining the apparatus, if implemented synchronously and effectively, will create a real revolution in mechanism, helping to remove faster and shorten the procedure for handling development projects, and will certainly help increase the number of approved projects.

In particular, accelerating and completing the construction of the National Land Database connected to the National Data Center and related databases, aiming to conduct electronic transactions in the land sector, will be an important foundation to help improve the ability to accurately price all market participants. When all information on land plots, planning, transaction history and legal status are standardized, digitized and made public, the market will have a basis for pricing assets based on real data. Thereby removing obstacles for a series of important projects.

In the short term, Mr. Dinh believes that there may be delays in processing documents due to waiting for the transfer and streamlining of the apparatus. However, in the medium and long term, when the apparatus is operating stably, procedures will be shortened, and the project approval and development process will become more transparent, clear and effective.

This is especially important in the context of the market lacking affordable housing supply. When many projects are launched, products and segments are diversified, the market will have less imbalance between supply and demand, creating opportunities to adjust prices in a reasonable direction. When businesses reduce administrative, financial and opportunity costs, they will also have room to offer prices more suitable to people's incomes. At that time, the market will be vibrant again, investment capital will be activated, and the confidence of investors and people will be strengthened.

(According to People's Representative)

Source: https://baoyenbai.com.vn/12/350154/Nghi-quyet-so-68-NQTW-ve-phat-trien-kinh-te-tu-nhan Thuc-day-su-phat-trien-dot-pha-thi-truong-bat-dong-san.aspx