Building a real estate market information system associated with land information. Photo: H Diu

Smooth policies

The directive states that the real estate market plays a very important role in maintaining macroeconomic stability, controlling inflation, ensuring large balances, and promoting growth. However, besides the positive results, the development of the real estate sector also revealed many shortcomings and inadequacies.

In order to overcome the above shortcomings and inadequacies and further promote the safe, healthy and sustainable development of the real estate market in the future, the Prime Minister requests reviewing the provisions to solve immediate as well as long-term problems toward building a healthy, appropriate and effective policy tool to ensure a safe, secure connection between the capital markets and the real estate market, diversify capital sources for the real estate market; promote decentralization of powers at all levels; and thoroughly research and propose pilot mechanisms and policies to create new driving forces and impulses for the market development;

Determine to develop a safe, healthy and sustainable real estate ecosystem; do not tighten credit unreasonably, but strengthen inspection and supervision, state management; do not criminalize economic - civil relations; proactively detect, prevent and strictly handle violations in accordance with the law, pay attention to tax evasion in real estate business, and protect and harmonize the interests of the State, people and businesses;

Combine fiscal and monetary policy harmoniously, rationally and effectively, implement monetary policy flexibly, safely, and cautiously, expand fiscal policy reasonably, ensuring efficiency, and strict management of prices and markets; and run policies smoothly.

The Directive requires a specific and accurate assessment of the situation and supply - demand to develop the real estate market on the basis of respecting market rules, competition rules, and promoting the role of State management, policy tools to intervene and control when necessary in an appropriate, timely and effective manner, and prevent market manipulation, goods hoarding and price gouging.

Control capital mobilization of real estate businesses

The Prime Minister requests the Ministry of Construction to urgently study and perfect the legal system related to the real estate sector to ensure consistency, remove difficulties and obstacles, and create favorable conditions for the real estate market to develop stably and healthily, build a real estate market information system associated with land information, improve the legal basis and strengthen cashless payment in real estate transactions.

The Ministry of Finance urgently amends Decree 153/2020 dated December 31, 2020 of the Government regulating private placement and trading of corporate bonds in domestic and foreign markets; control capital mobilization activities of real estate businesses in the stock market to avoid speculation, manipulation and price gouging.

The Ministry of Finance shall work with the State Bank of Vietnam to inspect and monitor the compliance with the law on issuance, investment and provision of services on corporate bonds, especially private placement of real estate enterprises, credit institutions related to real estate enterprises, enterprises with large issuance volume, high interest rates, enterprises with loss-making business results and issuers without collateral.

To guide the implementation of capital mobilization (including bond issuance) of real estate businesses in the stock market in accordance with the law; support enterprises that have capacity, good and healthy business results to raise capital to support recovery and development.

To research and perfect tax policies in line with reality for real estate in order to contribute to encouraging the effective use of houses and land, helping limit   house and land speculation, and ensuring a reasonable and stable source for the state budget, in line with Vietnam's socio-economic conditions and international practices.

The Ministry of Planning and Investment urges and guides localities, proposes solutions to remove difficulties and obstacles, resolutely cuts down unnecessary administrative procedures in investment, approves investment policies, investment decision and grants investment registration certificates for housing and real estate projects to support and increase the supply for the market; monitor and promote the attraction of foreign investment into the real estate business.

The Ministry of Natural Resources and Environment shall coordinate with the Ministry of Finance and the Ministry of Justice to review and amend current provisions related to the auction of land use rights to ensure consistency and suitability with the actual situation in each locality.

The State Bank of Vietnam closely monitors and supervises credit for the real estate sector; requests credit institutions to strictly control credit and credit quality for the real estate sector to ensure compliance with the law; consider giving priority to lending to projects of social housing, worker housing, and low-cost commercial housing with high efficiency and debt repayment ability.

To take measures to manage and prevent the division of plots and selling of ground in areas where investment is not permitted and lacking infrastructure; strengthen control over activities of real estate trading floors, real estate individuals and instructional brokers; rectify the act of fast trade and price gouging, causing disturbances in the real estate market.