Business News

What ministries had to do now to pave the way for the platform, Hà said, is to define its operational mechanics and its responsibilities towards businesses, set the criteria for their admission to the platform, and establish a mechanism under which data among platforms can be transferred.

Real estate insiders are predicting a strong end to 2023 in terms of recovery in various segments, and launches are already underway, but this will occur in tandem with government moves to adjust currently tight regulations on real estate lending.

According to economist Le Xuan Nghia, one of the biggest risks to the Vietnamese economy is that lending rates remain high despite the State Bank of Vietnam’s (SBV) recent efforts to reduce operating interest rates. “The real interest rate is still at 10 per cent, which is too high, but this is because the operator is still worried about exchange rate fluctuations,” said Dr. Nghia.

More effective solutions are being called for to pave the way for new supply and access to buy property. The government on August 7 issued Resolution No.124/NQ-CP, which requires related ministries and sectors to accelerate the establishment of trading real estate centres to help make the market more transparent.

Top Singaporean groups are continuing to make their mark in Vietnam’s real estate arena, from luxury apartments to industrial complexes. Vietnam is one of the top five destinations chosen by Singapore’s ultra-high-net-worth individuals to invest in real estate, behind Australia, India, Hong Kong, and the Chinese mainland, according to the Foreign Investment Agency.

The Vietnam Association of Realtors (VARS) has proposed allowing foreigners to purchase and own houses, including private houses and apartments, in Vietnam during the time they work in the country. VARS said it is necessary to specify the minimum remaining working time at the time of purchase, and supplement conditions when foreigners purchase a certain number of properties, to prevent speculation.

Circular No.06/2023/TT-NHNN, which amends and supplements a number of articles of a 2016 circular that provided operations for loans from credit institutions and foreign bank branches to customers, has new regulations on restrictions on real estate lending.

At a government press conference on July 4, Deputy Minister of Construction Nguyen Tuong Van said based on recent reports sent by the local authorities of Ho Chi Minh City, Hanoi, Danang, Haiphong, Can Tho and Dong Nai to the government’s working group on boosting real estate, three key problems in the sector continue to be institutional implementation, bonds, and capital management.