Deputy Prime Minister Trần Hồng Hà delivers a speech at the online meeting with the Prime Minister's working group to address difficulties and obstacles in implementing real estate projects after the issuance of new laws. VNA/VNS Photo

HÀ NỘI – Deputy Prime Minister Trần Hồng Hà urged ministries and sectors to address the paradox of excess in the high-end segment and shortage in the affordable segment of the real estate market, and to resolve the issue of price manipulation to develop a healthy real estate market.

He made these remarks while chairing an online meeting of the Prime Minister's working group to address difficulties and obstacles in implementing real estate projects after the issuance of new laws, including the amended Land Law, the amended Housing Law and the amended Real Estate Business Law.

Deputy PM Hà said the difficulties and obstacles in the real estate market seriously affected the economic ecosystem, especially the banking sector, construction, production of construction materials, and consumer goods.

He emphasised that the Government and the National Assembly had urgently amended related laws and prepared legal guidance documents to remove barriers in the real estate market.

Regarding difficulties and obstacles related to credit, planning, legal status and real estate business activities, Deputy PM Hà asked ministries, sectors, localities, associations and enterprises to thoroughly assess the effectiveness of mechanisms, policies and laws.

Emphasising the development of a healthy real estate market, he requested the Ministry of Construction to summarise the main issues that can be resolved in the amended laws on land, housing and real estate business, and proposed that the Government and the National Assembly issue documents with authority to apply before the laws take effect.

The Deputy PM required the working group to compile the number of real estate projects that have been allocated land but are facing procedural difficulties; establish criteria for real estate investors' capacity; expand the access to social housing for low-income earners and enterprises in industrial zones; and provide comprehensive guidance for localities to implement mechanisms and policies for land recovery, land clearance, resettlement and land pricing determination.

Deputy PM Hà requested that the resolution of proposals from businesses and localities must clearly define the specific responsibilities and completion times for each ministry and sector.

Regarding funding for social housing projects, the State Bank of Vietnam and the Ministry of Finance are studying fiscal policies to support interest rates for preferential credit loans for businesses and individuals; establishing a social housing investment fund consisting of State budget funds and contributions from enterprises, which cover 20 per cent of the costs for building social housing in commercial housing projects and other legal sources.

The Deputy PM urged businesses and investors to provide commercial housing and social housing products at appropriate prices, ensure high-quality design and reasonable profit margins, and harmonise interests with the State and people.

According to the Ministry of Construction, the real estate market has shown many positive changes.

In Hà Nội, among 404 projects with difficulties and obstacles, 81 have been removed from the slow implementation list, 10 have had their land reclaimed, and 67 others have investors’ commitment to accelerate implementation progress.

The city is continuing to address difficulties and obstacles for 246 projects according to the guidance of the Ministry of Construction and other ministries and sectors.

However, the ministry also revealed difficulties and obstacles.

New laws on housing, real estate business and land have not yet come into effect, leading to unresolved current difficulties and obstacles. There are still many obstacles in organising law enforcement in localities. There is a shortage of focus on land use planning, construction planning, housing development programmes, five-year and annual housing development plans to serve as a basis for approving investment projects.

Deputy Governor of the State Bank Đào Minh Tú shared that, for the real estate sector, speculation and price manipulation were the main risks causing difficulties in capital circulation and debt recovery. Therefore, the SBV aimed to address issues in the real estate sector, especially in credit mechanisms, to reschedule and defer debts.

Reporting some difficulties in the VNĐ120 trillion (US$5.08 billion) social housing credit package, Tú said that the key issue was to create conditions to enhance access between demand and supply, and promote the supply.

At the meeting, representatives of associations, real estate businesses and banks focused on discussing solutions to determine reasonable prices for high-end commercial housing and evaluate the real estate market for customers with medium and low incomes.

Leaders of some ministries and sectors clarified proposals from businesses and localities regarding land valuation, land allocation legal procedures and land use rights auctions, and committed to address issues within their jurisdiction. VNS