Vietnam Real Estate Association proposes to remove difficulties for businesses

At the end of 2019 and the beginning of 2020, the real estate market faced certain difficulties and showed signs of a sharp decline, affecting many other industries and professions.

The Vietnam Real Estate Association (VNREA) said that VNREA has sent a document to the Prime Minister on recommendations to improve legal policies and remove difficulties for real estate businesses.

According to VNREA's reflection, in the past 3 years, Vietnam's real estate market has developed stably, healthily and professionally. However, from the end of 2019 and the beginning of 2020, the real estate market faced certain difficulties and showed signs of a sharp decline, affecting many other industries and professions.

Many large and well-known enterprises in the market are in danger of bankruptcy, especially when they lose liquidity in many long-term projects. The implementation of new projects faced many difficulties.

In order to promote the stable and healthy development of the real estate market and remove difficulties for businesses, the first solution proposed by VNREA is to focus on the credit and tax stages.

Specifically, VNREA suggested that commercial banks should have a plan to reduce interest rates for investment loan contracts for business projects of tourist apartments, tourist villas, offices combined with accommodation; consider the structure of debt repayment, postponement and rescheduling of debts for enterprises and have loan packages with preferential interest rates for enterprises to resume production and business activities.

Currently, businesses propose to extend the time for paying obligations to the State budget for 6 months for each payment period after 1 year when the COVID-19 epidemic is under control; exempt from fines for late tax payment when the enterprise has fully paid tax; delay payment of land rent after the epidemic is under control, reduce VAT and delay tax payment time...

The second proposal made by VNREA is to complete the legal document on tourism real estate in accordance with Directive No. 11/CT-Ttg on a number of solutions to promote the stable and healthy development of the real estate market in accordance with the law. direction of additional research on products such as shophouse (opening of business and accommodation stores), shoptel (commercial townhouse allowing a combination of shopping and hotel services) and similar products; and at the same time issue documents on land use regime for these types of real estate.

VNREA said that the Government and related ministries and branches had many documents that actively contributed to completing the legal corridor for new types of real estate in the market.

However, in addition to the products mentioned in Directive 11, there are new types of real estate such as shophouses and similar products in the market. Shophouse is a type of real estate that the owner can use for business and leisure.

This is a type of real estate with many competitive advantages, allowing maximum exploitation of the usable area, flexibility, and contributing to the diversification of resort real estate products to serve market needs.

Therefore, in order to meet practical needs, in order to improve the legal system on land and real estate business, VNREA proposed the Government to consider and direct relevant ministries to research and supplement shophouses and shops. similar products to simultaneously deal with real estate products mentioned in Directive 11 and promulgate documents on land use regime for this type of real estate.

Funding for social housing is also one of the contents recommended by VNREA. According to the provisions of law, specifically the Law on Housing, the State annually grants 50% of capital to the Bank for Social Policies, 50% mobilizes more from different channels to support home buyers, renters and buyers. in society.

In addition, 4 commercial banks such as Vietcombank, BIDV, Agribank, VietinBank, which are controlled by the State, are provided with loan interest compensation from 3-4%, the rest are 100% self-mobilized for lending.

Thus, if granting 1,000 billion VND with a loan interest rate compensation of 3-4%, each year can mobilize an additional VND 25,000-30,000 billion for borrowers to buy social housing, creating great liquidity for customers. social housing. However, in fact, in 2019 there has not been this funding source to support buyers and businesses building social housing.

Currently, many investors building social housing such as AZ Thang Long, Hoang Quan, Capital House, Eurowindow-Holding... reflect difficulty in selling because buyers are not supported with loans while the demand for this segment is still very big. Therefore, VNREA proposed the Prime Minister to increase capital support for low-income people to buy social housing through two channels: the Bank for Social Policies and commercial banks controlled by the State.

In particular, VNREA recommends continuing to improve the legal system and reform administrative procedures to save time and costs for businesses and people.

Currently, construction investment activities are governed by about 12 different laws and many Decrees and Resolutions of the Government, the Prime Minister, and guiding circulars of ministries and branches.

In addition, there are more than 20,000 standards, regulations, economic and technical norms, from the stage of determining investment policies, capital needs, investment preparation, construction investment implementation and construction investment completion. construction and put the project into operation.

This causes many great consequences, increasing compliance time and costs, missing investment opportunities, and increasing risks to business operations. The legal provisions on investment, construction, business and operation of real estate have many overlapping points, which need to be revised and improved in order to increase the efficiency of investment and business; ensure the transparent development of the market; protect the interests of businesses and people.

Therefore, real estate businesses want administrative procedures to continue to be reformed in a favorable direction without affecting the effectiveness of state management. When administrative procedures are open, it will contribute to attracting investment and speeding up the implementation of projects.

According to TTXVN