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Low-rate plan to clear house stocks

Update: December, 15/2012 - 10:12

HA NOI (VNS)— Viet Nam Association of Financial Investors (Vafi) proposed to offer preferential interest rate of 7 per cent per year to home buyers with a property of less than VND2 billion (US$95,240) in the first three years.

This was among five Vafi's recent proposals to the Government to help revive the dosmestic real estate market.

Accordingly, the Goverment would spend VND8 trillion to compensate interest rate subsid-ising during 2013-15 period.

Vafi estimated that the move, similar to the Government's demand stimulus package worth USD $1 billion in 2008, might help attract investment of VND120 trillion, equal to 120,000 apartments while helping clear building material inventories.

The Vafi also said it's time for Viet Nam to build a relocation housing fund of cheap price and high quality for the 2013-20 period when real estate saw strong decrease in the prices by 30-60 per cent.

The fund needed 25,000 appartments to meet the relocation demand of big cities and the money could be mobilised from the State Capital Investment Corporation and the Corporate Restructuring Fund.

The interest rate on foreign currency deposits should be lowered from currently 2 per cent to 1 per cent then 0 per cent while a value added tax at 10 per cent imposed on gold purchasing, according to the association.

With the two solutions, Vafi affirmed that Viet Nam could put an end to dollarisation and goldisation which occurred for past decades while the loan interest rate would be reduced to 10 per cent per year, short-term loan rate to 8 per cent and mobilising interest rate to 5 per cent by the end of June next year.

The association also stressed the roles of relevant ministries and organisations and local authorities, saying that the expeditiousness in solving business would be a solution of uttermost importance to revive the real estate market.

The close coordination among relevant authorities from central to local level was crucial to raise timely measures tackling arising real estate problems. — VNS

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