Business News

Strong economic growth since 2015 has created a thriving domestic property market that is likely to continue next year, said Construction Minister Pham Hong Ha.
The Minister told the first annual Vietnam Real Estate Forum in Hanoi this week that the market’s growth had made significant contributions to the country’s socio-economic development.

Hindrance on granting house ownership certificates to overseas Vietnamese should be removed to encourage the investment into the local real estate market, Ho Chi Minh City People’s Committee said.

HCM City plans to put projects under the Build-Transfer (BT) investment model under more scrutiny by auctioning land instead of offering it in exchange for infrastructure.

The HCM City People’s Committee has proposed that the Ministry of Construction apply a high tax on second and subsequent homes, as well as when there are a high number of real estate transactions within a year.

The HCMC Government has proposed the Ministry of Construction increase the property tax on owners of the second home and land lot that change hands within a year, an apparent move which is aimed at warding off real estate speculation.

Shares rose further on the HCM Stock Exchange on Friday morning, led by banks and property firms. The benchmark VN Index added 0.35 per cent to close at 831.86 points. It gained 0.15 per cent on Thursday.

At the recent Vietnam Finance Forum 2017 in Hanoi, many economists pointed out that it is time to reform the national financial system and focus on tariffs such as added value (VAT) and commodity tax to ensure a sustainable source of funding.

To shape a stable, transparent, non-speculative and non-bubble real estate market, the Ministry of Construction is completing the project on “Assessing the market, forecasting medium-term trends, proposing solutions and mechanisms to promote stable and healthy market development” to submit to the Prime Minister in late 2017.