Solutions for safe, healthy, and sustainable development of real estate marketIn recent times, worldwide political and economic situations behave unpredictably and have greatly influenced Vietnam’s economic openness. The Government has then coordinated in order to stabilize macroeconomic situation, control inflations, ensure major balances, recover the economy and achieved a relatively high growth rate compared to other countries in the region and around the world.
On October 11, 2021, the Government promulgated Resolution No. 128/NQ-CP; Resolution No. 01/NQ-CP dated January 8, 2022; Resolution No. 02/NQ-CP dated January 10, 2022; Resolution No. 11/NQ-CP dated January 30, 2022. Specifically, the 13th Central Executive Committee of the Communist Party promulgated Resolution No. 18-NQ/TW.
The active compliance of departments, local governments and enterprises with Resolutions issued by the Communist Party, the Government, regulations, coordination, command of the Government has positively affected socio-political situations, secured social security, and stabilized macroeconomic situations.
The real estate market plays a vital role in stabilizing macroeconomic situations, controlling inflations, ensuring major balances, and promoting growth. However, despite some positive results, real estate development in recent times has revealed a variety of difficulties, drawbacks, disadvantages and underlying risks, such as: unreasonable proportion of real estate commodities, prices of real estate commodities, especially housing prices are relatively high compared to income of the general public, database on real estate market is inconsistent, inadequate, unreliable, etc.
Difficulties and drawbacks that must be resolved are: regulations relating to real estate market have not met practical demand, have not been promptly amended; the development of real estate projects in some provinces has not complied with planning, met market demand; investment procedures are spread across multiple legislative documents and involve multiple steps which lengthen investment procedures; the fact that real estate trades are not required by law to be made via exchange has given way to “fictional” projects, customer frauds, difficulties for the government in managing real estate information, tax deficit, state budget deficit; state management has not been sufficiently strict, prompt, and adequate, etc.
In order to rectify the aforementioned difficulties and drawbacks and ensure a safe, healthy, sustainable real estate market, the Prime Minister hereby requests:
1. Review regulations to deal with current and long-term problems by developing health, appropriate, and effective policy instruments in order to ensure connectivity, safety, and surety between capital market and real estate market, diversify funding sources of real estate market; promote decentralization, research thoroughly, propose pilot implementation of policies creating new drive for market development.
2. Steadfastly develop real estate ecosystem in a safe, healthy, sustainable manner; refrain from limiting credit in an unreasonable manner, enhance inspection and supervision, enhance state management; refrain from criminalizing economic-civil relations; discover, prevent, and take actions against violations of regulations and law, especially tax evasion in real estate trading, protect people on the right, protect and harmonize benefits of the government, the general public, and enterprises.
3. Harmoniously, reasonably, and effectively cooperate fiscal policies and monetary policies, implement monetary policies in a flexible, safe, and careful manner, expand fiscal policies reasonably, focus on ensuring effectiveness, closely monitor prices and market; refrain from regulating policies “abruptly”, refrain from suddenly transitioning from “loose” to strict control or vice versa.
4. Ministries, departments, and local governments focus on implementing solutions and tasks under Resolution No. 11/NQ-CP of the Government.
5. Focus on implementing solutions for attracting investment, attracting production, trade, creating jobs, stabilizing macroeconomic situations, controlling inflation, and ensuring major balances of the economy.
6. Specifically and accurately assess situations and supply-demand in order to develop real estate market on the basis of respecting market rules, competitive rules while exercising management role of the state and policy instruments to promptly interfere and control when necessary, prevent market manipulation and speculation, etc.
7. Identify market niches, demands, such as industrial real estate, worker houses, houses for persons with low income to drive the market, focus on social security, create opportunities for persons with low income, “do not trade advancement and social justice for pure economic development”.
8. Develop infrastructures to create new development space, new development drive, promote establishment of enterprises, service areas, and urban areas.
9. Enhance inspection, examination, and audit to resolved difficulties, protect the market, protect assets, and protect humans, do not legitimize violations but carry out subjective assessment to find causes and solutions for practical difficulties.
10. Communicate using appropriate method; promote education on financial knowledge, law knowledge for the general public and in schools and in other methods.
Solutions for safe, healthy, and sustainable development of real estate market
31/08/2022
In recent times, worldwide political and economic situations behave unpredictably and have greatly influenced Vietnam’s economic openness. The Government has then coordinated in order to stabilize macroeconomic situation, control inflations, ensure major balances, recover the economy and achieved a relatively high growth rate compared to other countries in the region and around the world.
On October 11, 2021, the Government promulgated Resolution No. 128/NQ-CP; Resolution No. 01/NQ-CP dated January 8, 2022; Resolution No. 02/NQ-CP dated January 10, 2022; Resolution No. 11/NQ-CP dated January 30, 2022. Specifically, the 13th Central Executive Committee of the Communist Party promulgated Resolution No. 18-NQ/TW.
The active compliance of departments, local governments and enterprises with Resolutions issued by the Communist Party, the Government, regulations, coordination, command of the Government has positively affected socio-political situations, secured social security, and stabilized macroeconomic situations.
The real estate market plays a vital role in stabilizing macroeconomic situations, controlling inflations, ensuring major balances, and promoting growth. However, despite some positive results, real estate development in recent times has revealed a variety of difficulties, drawbacks, disadvantages and underlying risks, such as: unreasonable proportion of real estate commodities, prices of real estate commodities, especially housing prices are relatively high compared to income of the general public, database on real estate market is inconsistent, inadequate, unreliable, etc.
Difficulties and drawbacks that must be resolved are: regulations relating to real estate market have not met practical demand, have not been promptly amended; the development of real estate projects in some provinces has not complied with planning, met market demand; investment procedures are spread across multiple legislative documents and involve multiple steps which lengthen investment procedures; the fact that real estate trades are not required by law to be made via exchange has given way to “fictional” projects, customer frauds, difficulties for the government in managing real estate information, tax deficit, state budget deficit; state management has not been sufficiently strict, prompt, and adequate, etc.
In order to rectify the aforementioned difficulties and drawbacks and ensure a safe, healthy, sustainable real estate market, the Prime Minister hereby requests:
1. Review regulations to deal with current and long-term problems by developing health, appropriate, and effective policy instruments in order to ensure connectivity, safety, and surety between capital market and real estate market, diversify funding sources of real estate market; promote decentralization, research thoroughly, propose pilot implementation of policies creating new drive for market development.
2. Steadfastly develop real estate ecosystem in a safe, healthy, sustainable manner; refrain from limiting credit in an unreasonable manner, enhance inspection and supervision, enhance state management; refrain from criminalizing economic-civil relations; discover, prevent, and take actions against violations of regulations and law, especially tax evasion in real estate trading, protect people on the right, protect and harmonize benefits of the government, the general public, and enterprises.
3. Harmoniously, reasonably, and effectively cooperate fiscal policies and monetary policies, implement monetary policies in a flexible, safe, and careful manner, expand fiscal policies reasonably, focus on ensuring effectiveness, closely monitor prices and market; refrain from regulating policies “abruptly”, refrain from suddenly transitioning from “loose” to strict control or vice versa.
4. Ministries, departments, and local governments focus on implementing solutions and tasks under Resolution No. 11/NQ-CP of the Government.
5. Focus on implementing solutions for attracting investment, attracting production, trade, creating jobs, stabilizing macroeconomic situations, controlling inflation, and ensuring major balances of the economy.
6. Specifically and accurately assess situations and supply-demand in order to develop real estate market on the basis of respecting market rules, competitive rules while exercising management role of the state and policy instruments to promptly interfere and control when necessary, prevent market manipulation and speculation, etc.
7. Identify market niches, demands, such as industrial real estate, worker houses, houses for persons with low income to drive the market, focus on social security, create opportunities for persons with low income, “do not trade advancement and social justice for pure economic development”.
8. Develop infrastructures to create new development space, new development drive, promote establishment of enterprises, service areas, and urban areas.
9. Enhance inspection, examination, and audit to resolved difficulties, protect the market, protect assets, and protect humans, do not legitimize violations but carry out subjective assessment to find causes and solutions for practical difficulties.
10. Communicate using appropriate method; promote education on financial knowledge, law knowledge for the general public and in schools and in other methods.