A thematic session on accelerating institutional reform – perfecting land policy for socio-economic recovery and development, as part of the 2022 Vietnam Socio-Economic Forum, opened in Hanoi on September 18.

The event was co-hosted by the National Assembly Committee for Economic Affairs, the Party Central Committee’s Economic Commission, the Ho Chi Minh National Academy of Politics and the Vietnam Academy of Social Sciences.

Speaking at the event, deputy head of the Party Central Committee’s Economic Commission Nguyen Thanh Phong said developing a transparent and convenient real estate market will bring opportunities to draw capital at home and abroad, thus propelling socio-economic development.

Prof. Hoang Van Cuong, Vice Rector of the National Economics University, said land price mechanism for real estate development must be in accordance with the land market value. The selection of realty developers must also follow market mechanism.

The State must directly engage in land reclamation and compensation for site clearance in its all approved projects, he said.

Meanwhile, former Deputy Minister of Natural Resources and Environment Prof. Dang Hung Vo highlighted a need to add definition of market price under international standard into the revised Law on Land.

He suggested further improve the reform of land use tax, real estate or asset taxes as well as allow controlled mortgages at foreign financial organisations.

Finance Minister Ho Duc Phoc said solutions to evaluate land prices should be reviewed to add into amendments to the Law on Land.

In the upcoming fourth meeting, the amended Law on Land will be submitted to the legislature for consideration.

At another thematic session on policies in support of businesses and workers for sustainable development, a representative from the State Bank of Vietnam (SBV) said policies will be revised to step up the disbursement of 2% interest rate support package for enterprises.

Chairwoman of Deloitte Vietnam Ha Thu Thanh said as most of the Vietnamese companies are small and medium-sized, they find it hard to access capital via commercial banks. Their collateral assets have limit ed value so that the loans they could obtain are not sufficient to expand operations.

To fix it, the SBV will set up an inter-sectoral working group to take field trips to localities and answer their questions, hold more conferences linking businesses and banks, and work closely with ministries and agencies to tackle difficulties./.