Circular 06 does not clearly specify the target groups eligible for credit support and assistance.

Accordingly, VARS believes that legal issues and access to capital are currently the main challenges facing the real estate market. These two factors have resulted in thousands of projects being stalled, difficult to implement, or temporarily suspended. Regarding capital specifically, not only developers but also many customers and investors are facing difficulties in accessing funds, leading to liquidity bottlenecks.

To address the issue of capital sources, Resolution 33/NQ-CP clearly outlines the objective of removing obstacles related to credit sources, aiming to unblock capital flows into the real estate market and contribute to increased market liquidity. This is achieved by facilitating businesses, homebuyers, and investors in accessing credit sources with preferential interest rates.

However, Circular 06/2023/TT-NHNN almost completely fails to adhere to the spirit of Resolution 33/NQ-CP, not clearly specifying the eligible beneficiaries for credit support and assistance. Conversely, Circular 06 vaguely identifies those ineligible for loans, giving commercial banks more reasons to reject customer applications.

VARS argues that if Circular 06 comes into effect, it will affect the ability of many real estate projects to access capital.

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Real estate benefits from strong FDI inflows into Vietnam.The shift of FDI into Vietnam not only boosts high-tech manufacturing but also opens up significant growth potential for industrial real estate, satellite cities, and infrastructure-related segments.

Over 65,000 farmers gained access to loans.The Ca Mau Provincial Farmers' Association, in coordination with banks, has facilitated access to loan capital for over 65,000 member households and farmers, with a total outstanding loan balance exceeding 2,300 billion VND. In addition, the Farmers' Support Fund has disbursed over 126 billion VND, supporting over 580 projects with nearly 5,600 borrowing households.

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VARS also argues that Circular 06 has other shortcomings. For example, projects that are facing legal obstacles or lacking capital are not yet eligible to continue implementation. If they are not granted loans, businesses will have no opportunity to adapt.

Furthermore, mergers and acquisitions (M&A) are considered a channel that actively supports and opens up opportunities for many businesses and the real estate market. However, Circular 06, instead of facilitating, relaxing, and supporting M&A activities, creates the risk of making these activities more difficult.

Finally, the procedures outlined in Circular 06 still contain many unclear and ambiguous points, which can easily cause further market confusion. This, in turn, prolongs the stagnation period and negatively impacts the market's recovery process.

For the reasons mentioned above, VARS believes that the State Bank of Vietnam should now revoke Circular 06 and research and issue a decree that closely adheres to and is in line with the spirit of Resolution No. 33/NQ-CP. This decree should clarify the eligible borrowers, those facing difficulties due to conflicting legal frameworks, capital constraints forcing the suspension of land clearance, land use fee payments, and the acquisition of struggling businesses; lending options for special groups; mechanisms for monitoring and ensuring effectiveness after lending; and lending procedures that are detailed and clear.

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Hundreds of real estate projects have had their difficulties and obstacles resolved.

Nghe An invests over 2.1 trillion VND in industrial parks.The People's Committee of Nghe An province has just approved the investment plan for the project to build and operate infrastructure in Zone B of Tho Loc Industrial Park.

Earlier on the evening of August 16th, Prime Minister Pham Minh Chinh sent an urgent document to Deputy Prime Minister Le Minh Khai, the Governor and Deputy Governors of the State Bank of Vietnam, the Minister of Justice , and the Minister of Finance, directing them to implement solutions to improve businesses' access to credit.

Accordingly, with a proactive spirit, listening to the opinions of businesses and the people, ensuring that policies, when issued, are correct, effective, do not hinder development, and are appropriate and timely in addressing difficulties, Deputy Prime Minister Le Minh Khai is instructed to urgently chair a meeting with the Governor of the State Bank of Vietnam, leaders of the State Bank of Vietnam, the Ministry of Justice, the Ministry of Finance, and the Government Office to hear reports and study directives on amending and supplementing Circular No. 06 and the unreasonable points of Circular No. 03, and report back to the Prime Minister before August 20th.

Source: https://www.congluan.vn/thong-tu-06-chua-chi-ro-doi-tuong-duoc-ho-tro-thao-go-kho-khan-ve-tin-dung-post260891.html