THE PRIME MINISTER
THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
Hanoi, August 29, 2022
On providing a number of solutions to the safe and sustainable development of real estate market
In the recent past, there are many complicated, unstable and unpredictable changes in the world political and economic situation, affecting the Vietnam’s economy. In such context, the Government has given many directions to stabilize the macro-economy, control inflation, ensure major balances, making the economy recover with a relatively high growth rate in comparison with countries in the region and around the world.
The Government promulgates the Resolution No. 128/NQ-CP on safe and flexible adaptation and effective control over the COVID-19 pandemic on October 11, 2021; Resolution No. 01/NQ-CP dated January 08, 2022 on major tasks and solutions guiding the realization of the socio-economic development plan and the State budget estimate in 2022; Resolution No. 02/NQ-CP dated January 10, 2022 on major tasks and solutions to improve the business environment and heighten the national competitiveness in 2022; Resolution No. 11/NQ-CP dated January 30, 2022 on the socio-economic recovery and development program and implementation of the National Assembly’s Resolution No. 43/2022/QH15 on fiscal and monetary policies in support of the program. Particularly, the 13th Party Central Committee issues the Resolution No. 18-NQ/TW on continuation of innovation and perfection of institutions and policies, improvement of the effectiveness and efficiency of land management and use, creating a force for the country to become a high-income and developed country.
Efforts of agencies at all levels, sectors, localities and the enterprise community to implement the Resolutions of the Party and State, law regulations and the direction, administration, solutions and policies of the Government on the real estate market make many positive changes in the socio-economic situation, ensuring social security and stabilizing the macro-economy.
The real estate market plays a very important role in maintaining the stability of macro-economy, controlling inflation, ensuring major balances, and promoting growth. However, during the development, the real estate field has also revealed many shortcomings, limitations, inadequacies and potential risks such as: The structure of real estate goods is not reasonable, the price of real estate products, especially price of houses, is still quite high compared to citizens’ incomes, the database of information on the real estate market is incomplete, unreliable, and untransparent and is not synchronized, etc.
Some shortcomings and inadequacies to be removed shall be as follows: some contents in the system of laws related to the real estate market have not met practical needs, have not been supplemented and amended in time; the development of real estate projects in several localities does not comply with master plans and plans, and is not suitable to the needs of the market; investment order and procedures are specified in many different legal documents, include many steps, so the implementation of investment procedures is prolonged; the regulations that the real estate transactions via real estate transaction floors is not compulsory contribute the formulation of “ghost projects”, fraud cases, on the other hand, the State faces many difficulties in managing information on the real estate market, loss of tax revenue and loss of revenue for the State budget; the state management is not strict and timely, and does not meet the management requirements, etc.
In order to resolve the above-mentioned shortcomings and inadequacies and continue to promote the safe and sustainable development of the real estate market, the Prime Minister requests as follows:
I. A NUMBER OF VIEWPOINTS, GENERAL SOLUTIONS
1. Review law regulations to solve arising problems in the direction of building an appropriate and effective policy instruments to ensure the safe and certain connectivity between capital markets with the real estate market, diversify capital sources for real estate market; step up delegation and decentralization of powers for agencies at all levels, thoroughly research and propose pilot mechanisms and policies to create new driving forces for development of the market.
2. Persistently, steadfastly and resolutely develop a safe, healthy and sustainable real estate ecosystem; do not tighten credit policy unreasonably, but strengthen the inspection and supervision, do not loosen state management; do not criminalize economic - civil relations; proactively detect, prevent and strictly handle acts of violations in accordance with the law regulations, pay attention to tax evasion activities in real estate business, avoid breakdown, protect rights of persons complying with law regulations, protect and harmonize the interests of the State, citizens and enterprises.
3. Combine harmoniously, rationally and effectively between fiscal policy and monetary policy, implement a flexible, safe, prudent monetary policy, reasonable expansionary fiscal policy, focusing on ensuring the effectiveness and strict management of prices and markets; avoid suddenly operating the policies, do not quickly change the state from “loosening” to tight control, or vice versa.
4. Ministries, sectors and localities shall focus on implementing synchronously the tasks and solutions specified in the Resolution No. 11/NQ-CP of the Government on the socio-economic recovery and development program.
5. Focus on implementing solutions to attract investment, promote production and business, create jobs in many fields and localities; stabilize the macro-economy, control inflation, and ensure major balances of the economy.
6. Make 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 the State’s management and policy instruments for appropriate, timely and effective intervention and control when necessary, avoiding the manipulation of the market, goods speculation, excessive price increase, etc.
7. Identify market segments and needs, such as industrial real estate, accommodations for workers, low-income houses to promulgate appropriate policies to promote the market, focus on social security, create opportunities for low-income people, “not sacrifice social progress and justice for the economic growth”.
8. Develop strategic infrastructure to create new development space, new development motivation, promoting the establishment of new industrial parks, services and urban areas.
9. Strengthen examination, inspection and audit to remove obstacles, handle violations for protecting the market, assets and people, do not legitimize violations but assess objectively, find the causes, make a mechanism to remove the problems arising.
10. Implement the communication work, appropriately and effectively promote training in financial and legal knowledge for citizens, in schools and in other methods.
II. A NUMBER OF SPECIFIC TASKS AND MAIN SOLUTIONS
1. The Ministry of Construction
a) To expeditiously study and perfect the law system related to the real estate field to ensure synchronization, remove difficulties and obstacles, and create favorable conditions for the stable development of real estate market, build a real estate market information system associated with land information, perfect the legal basis and strengthen non-cash payments in real estate transactions. Accordingly, to propose submitting to the National Assembly for giving opinion and approval of the (amended) Housing Law and (amended) Law on Real Estate Business to create a legal framework for real estate business activities, enhancing the efficiency of real estate market management; urgently amend and supplement the Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government on social housing development and management, the Government’s Decree No. 49/2021/ND-CP dated April 01, 2021 on amending and supplementing the Government’s Decree No. 100/2015/ND-CP dated October 20, 2015 on social housing development and management for the compliance with the Housing Law.
b) To assume the prime responsibility for, and coordinate with concerned ministries and sectors in, researching and proposing the promulgation of regulations on guiding the implementation order of urban area and housing projects.
c) To regularly monitor the development of the real estate market; send the Prime Minister quarterly reports on the situation of real estate business and real estate market nationwide and proposal on solutions for the stable and sustainable development of the real estate market.
d) To inspect and examine the implementation of the law regulations on real estate business, real estate trading floor operations of real estate transaction floors, real estate brokerage activities; coordinate with provincial-level People's Committees in organizing the inspection and review of housing and real estate business projects to propose to competent state agencies to withdraw, terminate, suspend or adjust, change and transfer real estate business projects in accordance with the law regulations.
dd) To assume the prime responsibility and coordinate with relevant ministries and sectors in establishing a working group to direct, guide and urge localities to implement the Resolution No. 11/NQ-CP of the Government on the socio-economic recovery and development program, for the policy of supporting the development of social houses, accommodations for workers in industrial parks and renovation and reconstruction of old condominiums.
e) To direct, guide and coordinate with localities to review and supplement the planning, arrange the land funds for the development of social houses, accommodations for workers in accordance with law regulations, strictly comply with the regulation of setting aside 20% of the land funds of projects on houses, urban areas and ensuring the needs of development of social houses, accommodations for workers in the localities.
g) To direct, guide and coordinate with localities in reviewing, making and publicizing the list of owners of project on social houses, accommodations for workers, renovation or reconstruction of old condominiums that are eligible for loans with the interest rate support of 2% via the commercial bank system.
h) To assume the prime responsibility for, and coordinate with concerned ministries and sectors in, researching and proposing policies for promoting the development of social houses and accommodations for workers in industrial parks.
i) To complete and publicize the system of information on houses and real estate market.
2. The Ministry of Finance
a) To urgently amend the Government’s Decree No. 153/2020/ND-CP dated December 31, 2020 on private placement of corporate bonds and trading of privately placed corporate bonds in the domestic market and offering of corporate bonds to the international market.
b) To control the capital mobilization activities of real estate business enterprises in the securities market, avoiding speculation, manipulation and abnormal price increase.
c) To coordinate with the State Bank of Vietnam in inspecting and supervising the compliance with law regulations on issuance, investment and provision of services related to corporate bonds, especially privately placed bond issuance by 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 issuing enterprises without collaterals.
d) To direct and guide the capital mobilization (including bond issuance activities) of real estate business enterprises in the securities market in accordance with law regulations; create favorable conditions, not hinder enterprises (with sufficient capacity, good and healthy business results, etc.) so that they may mobilize capital for support of recovery and development.
dd) To research and perfect tax policies applicable to real estate in conformity with the reality in order to encourage the effective use of houses and land, limit the speculation in houses and land, ensuring the mobilization of a reasonable and stable revenue source for the State budget, in conformity with Vietnam’s socio-economic conditions and international practices.
3. The Ministry of Planning and Investment
a) To direct, urge and guide localities, propose solutions to remove difficulties and obstacles, resolutely repeal unnecessary administrative procedures in procedures for investment, approval of investment policies, decision on investment and grant of investment registration certificates for housing and real estate projects to increase the supply for the market.
b) To monitor and promote the attraction of foreign investment in the real estate business field.
4. The Ministry of Natural Resources and Environment
a) To coordinate with the Ministry of Finance and the Ministry of Justice in studying, reviewing and amending current law provisions related to the auction of land use rights (law on auction, law on land, law on tax administration) to ensure the consistency and suitability for the actual situation of localities.
b) To inspect, examine and direct localities to prevent and strictly handle acts of violations of land use right auction activities, ensuring the compliance with law regulations.
c) To check and review the criteria on land use plan and planning to ensure that they are consistent with the land planning of sectors and fields, ensuring the rationality, avoiding overlapping, complaints and lawsuits.
5. The Ministry of Public Security
To assume the prime responsibility for, closely and effectively coordinate with the Ministry of Finance, the State Bank of Vietnam and relevant agencies in strengthening the grasp of the macro-economic situation; assume the prime responsibility for, and coordinate with the Ministry of Construction and the Ministry of Finance in, strictly handling the activities of real estate transaction floors and real estate brokerage activities that violate the law regulations, acts of tax evasion, and acts of disseminating inaccurate information that cause negative impacts on the operation of financial, credit and real estate markets.
6. The Ministry of Information and Communications
To direct the press agencies to strengthen the timely and official provision of accurate and complete information on the operation of the real estate market, the securities market and the bond market; strictly handle acts of providing and spread inaccurate information that cause negative impacts on the operation of financial, credit and real estate markets.
7. The State Bank of Vietnam
To closely monitor and supervise credit policy applicable to the real estate field. To direct credit institutions to strictly control credit and lending quality for the real estate field, ensuring compliance with the law regulations; urgently consider giving priority over loan for projects of social houses, accommodations for workers, and low-cost commercial houses with high efficiency and debt repayment ability.
8. People's Committees of provinces and centrally-run cities
a) To expeditiously organize the formulation, appraisal and approval of urban and rural area construction planning, land use master plans and plans; publicize construction planning information, list and progress of infrastructure development projects, real estate projects, especially large projects, and merger, establishment and upgrade of the local administrative units, prevent rumors and speculation to increase prices for illegal profiteering.
b) To expeditiously develop housing development programs for the period from now until 2025 and 2030, and a 5-year and annual housing development plans in accordance with the Housing Law, clearly defining a list of housing projects to serve as a basis for approval of housing project investment policies in the localities.
c) To review and make a list of projects on houses and real estate in the localities; specifically assess reasons for projects that have investment policies approved but have not been implemented or are implemented slowly. On that basis, focus on solving legal difficulties and investment procedures for housing projects to increase the supply for the market.
d) To publicize the list of projects, land funds, order and procedures for housing and real estate development in the localities for call for investment; create favorable conditions for domestic and foreign investors to easily access and participate in housing and real estate investment.
dd) To focus on direction and organization of land allocation, selection of investors implementing real estate projects and housing projects to increase the supply for the market.
e) To promote the auction of land use rights; bidding for projects using land to select investors that make an increase in the supply of projects on commercial houses in the real estate market.
g) To implement solutions to promote the development of social houses, accommodations for workers in the localities:
- To review and supplement the planning, arrange the land funds for the development of social houses, accommodations for workers in accordance with law regulations, strictly comply with the regulation of setting aside 20% of the land funds of projects on houses, urban areas and ensuring the needs of development of social houses, accommodations for workers in the localities.
-To focus on implementing the Government’s Resolution No. 11/NQ-CP on the socio-economic recovery and development program, in which expeditiously making a list of projects, reviewing the land funds, completing legal procedures, selecting project owners to implement projects on social houses, accommodations for workers in industrial parks, renovation and reconstruction of old condominiums in the localities.
- To review the subjects and conditions, on that basis, to make and announce the list of project owners of projects of social houses, accommodations for workers, renovation and reconstruction of old condominiums eligible for loan with interest rate support of 2% through the commercial bank system in accordance with the Decree on interest rate support from the State budget for loans of enterprises, cooperatives and business households.
- To coordinate with the Vietnam Bank for Social Policies at provincial level in reviewing and synthesizing the needs of individuals and households to loan for purchasing, lease-purchase of social houses, accommodations for workers; building, renovation or repair of houses in accordance with Article 16 of the Decree No. 100/2015/ND-CP, Clause 10 Article 1 of the Decree No. 49/2021/ND-CP and relevant documents, ensuring the accuracy and reflecting the citizens’ actual needs.
h) To expeditiously complete the quality inspection and evaluation of old condominiums in the localities to determine the condominiums to be demolished; quickly make and approve the plan and list of projects on renovation and reconstruction of condominiums in accordance with the Decree No. 69/2021/ND-CP.
i) To control, detect, prevent and strictly handle acts of violations in the auctions of land use rights, ensuring the compliance with the law regulations.
k) To take measures to manage and prevent the division, “subdivision and sale of plots” in areas without permission for investment and with the lack of infrastructure system; strengthen the control over activities of real estate transaction floors, organizations and individuals practicing real estate brokerage; handle the acts of buying and selling land without performing transfer procedures as specified, abnormal price increase that cause disturbances of real estate market information.
l) To review projects that use land but of which the implementation is delayed, resulting unused or misused land, and wasting land; on that basis, to coordinate with relevant agencies in considering and guiding the handling of them within their competence and in accordance with the law regulations on land and other relevant law provisions to put the land funds into effective use with the development orientation in conformity with the society’s actual needs.
m) To closely and timely monitor, grasp information and development of the market and timely take handling measures to stabilize the market and prevent the feverish land price increase and real estate bubbles in the localities.
n) To strengthen the examination and inspection and strictly handle violations of the law regulations on real estate business, on land, on construction and other relevant law regulations (if any).
9. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of People’s Committees of provinces and centrally-run cities shall, within the ambit of their assigned functions and tasks, be responsible for thoroughly grasping and organizing the strict implementation of this Directive; at the same time, sending biannual and annual reports to the Ministry of Construction for synthesizing and reporting on them to the Prime Minister.
10. The Ministry of Construction shall assume the prime responsibility for, and coordinate with the Government Office and relevant agencies in, guiding, urging and inspecting the implementation of this Directive, synthesizing and reporting to the Prime Minister.
FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER
Le Van Thanh