Many important recommendations for the real estate market are still "stuck" in 2023

According to Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), in 2023, the Prime Minister and ministries, branches and localities have many solutions to "rescue" the real estate market. Therefore, the real estate market has passed the "bottom" and is in the process of gradual recovery and can develop in the second half of 2024 onwards. However, there are still some directives from the Government and the Prime Minister in 2023 that have not been fully implemented by ministries and branches.

A typical example is the proposal to soon issue the "Decree amending and supplementing a number of articles of Decree No. 44/2014/ND-CP regulating land prices" to remove obstacles in land valuation to calculate land use fees and land rents for hundreds of real estate and commercial housing projects to ensure no loss of state budget revenue, to issue "pink books" to customers and for project investors to fulfill their obligations and responsibilities.

Many important recommendations related to the real estate market have not been handled in 2020.

Or regulations to remove obstacles in the investment sector, including the procedure of "approving investment policies at the same time as approving investors" for social housing projects, commercial housing projects and for general application nationwide. This content is related to Decree 31, Resolution 33 of the Government and is consistent with Resolution No. 98/2023/QH15 of the National Assembly on piloting a number of specific mechanisms and policies for the development of Ho Chi Minh City.

The Association also proposed to amend Decree 132/2020/ND-CP in the direction of not controlling the ceiling of total interest expenses not exceeding 30% of the total net profit from business activities in the period of domestic enterprises with related-party transactions; the proposal to strengthen control and strictly handle enterprises with related-party transactions that have transfer pricing, falsifying costs to evade taxes... has not been implemented.

Recommend the State Bank to review and evaluate the implementation of circulars related to Official Dispatch 1177/CD-TTg in the direction of amending, supplementing or abolishing inappropriate regulations to create favorable conditions for credit access for people and businesses and effectively support the corporate bond market.

Proposal to extend Resolution No. 42/2017/NQ-QH14 (Resolution 42) for another 12 months, until December 31, 2024, to create conditions for credit institutions to effectively handle bad debts, including handling collateral assets being real estate projects.

This creates conditions for credit institutions to effectively handle bad debts from 2017 to present, especially handling collateral assets such as real estate projects, but Resolution No. 42 will expire. Not to mention, the Law on Real Estate Business 2023 will not take effect until January 1, 2025, so there will be a "legal gap" in 2024, while Resolution 42 of the National Assembly has expired.

Source: https://nld.com.vn/nhieu-kien-nghi-quan-trong-cho-thi-truong-bat-dong-san-con-vuong-lai-nam-2023-196240101183802612.htm