On July 14, 2022, Governor Nguyen Thi Hong of the State Bank of Vietnam attended the Conference on Developing the Real Estate Market toward Safety, Soundness and Sustainability under the chairmanship of Prime Minister Pham Minh Chinh. The Conference was connected virtually with the People's Committees of the five centrally-controlled cities of Hanoi, Ho Chi Minh City, Da Nang, Hai Phong, and Can Tho.
No unreasonable tightening of real estate credit
Speaking at the Conference, the Prime Minister emphasized the viewpoint of persistently and firmly developing a safe, sound and sustainable real estate ecosystem without unreasonable credit tightening, but strengthening the inspection, supervision and the State management; Economic-civic relations will not be criminalized, but law violations must be detected, deterred and strictly punished to protect those who comply with the laws, and to balance the interests of the State, the businesses and the people.
On that basis, the Ministries, agencies and local authorities must focus on implementing consistently the measures as stated in Resolution No. 11/NQ-CP of the Government on the Socio-economic Recovery and Development Program.
Moreover, the Prime Minister further asserted that in order to develop the real estate ecosystem, it is necessary to maintain the sovereignty and territorial integrity, the political stability, the social order and safety, the macro-economic stability, the inflation control, and the guarantee of the macro balances.
An overview of the Conference
Prime Ministe Pham Minh Chinh also underlined the need for strategic infrastructure development, thereby creating new space and new momentum for development; developing sound, appropriate and effective policy instruments to ensure the connectivity, safety and stability of the capital market and the real estate market, and diversifying capital resources for the real estate market.
The Prime Minister assigned the Ministry of Construction to promptly study and improve the legislation related to the real estate industry with a view to ensuring the consistency, removing any obstacles and enabling the real estate market to develop toward soundness and sustainability.
The Ministry of Finance shall take the lead to urgently finalize a draft Decree revising Decree No. 153/2020/ND-CP dated December 31, 2020 providing for private offering and trading of corporate bonds in the domestic market and offering of corporate bonds to the international market.
The SBV was tasked with monitoring, controlling and restructuring credit for the real estate sector to ensure proper use of capital and prevent risks to the market.
Prime Minister Pham Minh Chinh also assigned the Government Office to coordinate with the Ministry of Construction and other related Ministries and agencies to formulate a Prime Minister's directive document on solutions to ensure the sound and sustainable development of the real estate market.
Promptly study and improve the legislation on real estate
Speaking at the Conference, Mr. Nguyen Thanh Nghi, Minister of Construction, shared that over the past years, the real estate market had contributed more or less 4.5 percent to the GDP both directly and indirectly. In 2021, the real estate sector faced numerous difficulties due to the pandemic, but during the recent months the sector has been gradually recovering, adapting and changing flexibly to maintain its relative stability. Entering 2022, the socio-economy had witnessed positive changes, helping all sectors, industries and regions to recover and regain their growths.
About the measures to ensure stable, sound, effective and sustainable development of the real estate market, the Minister of Construction recommended some specific actions to be taken by the different Ministries and local authorities, generally as follows:
Promptly studying and improving the legislation on real estate, such as the Land Law, the Law on Investment, the Law on Housing, the Law on Real Estate Business, the Law on Bidding, the Law on Construction, the Law on Urban Planning, etc., in order to create a comprehensive and transparent legal framework for real estate transactions, enhancing the effectiveness and soundness in the real estate market management.
Closely monitoring the developments of the real estate market to promptly conduct corrective measures to ensure the soundness of the market when needed.
Enhancing the inspection and supervision of the compliance with the applicable laws on real estate business and brokerage.
At the Conference, the participants also discussed, made assessment and provided some outlook for the real estate market in Vietnam, as well as recommended possible orientations and solutions on the product structure and the supply for safe, sound and sustainable development of the real estate market; the macro policy and the impacts of land policies on the real estate market; as well as recommendations about the formulation and improvement of the legal system on real estate and enforcement.
Le Hang