Business News

This was expressed by Prof. Ngo Tri Long, leader of the Ministry of Finance's Price Research Institute, during a seminar on the revitalisation and sound development of capital for the domestic real estate sector. The event, held on April 19, was organised by the Vietnam Financial Consulting Association (VFCA).

The ministry also proposed the abolishment of regulations on a fixed term of apartment ownership in the draft law, and the supplementation of regulations related to the term of use and the demolition of old apartment buildings.

The real estate market is still in a downturn, facing difficulties with legal and capital bottlenecks, low liquidity, high inflation, high interest rates, and high prices. According to a Q1 report by the Vietnam Association of Realtors, market liquidity in the first quarter of 2023 declined sharply compared to the first half of 2022 when the absorption rate was only about 11 per cent.

Binh Dinh province defines that developing industrial zones and economic zones is one of the new engines of growth and development. In order to attract investment capital and develop economic zones and industrial zones, the province has created many competitive advantages thanks to the open investment environment, simple and streamlined administrative procedures.

Prime Minister Phạm Minh Chính emphasised the significance of the revised draft Land Law and Housing Law, which are complex and sensitive with a far-reaching impact on a large scale, and stressed the need for the Government to pay close attention to ensure their quality and progress.

The resolution clearly states that the real estate market plays an important role in the economy and affects many other industries and fields. However, in 2022 especially in the second half of 2022, the real estate market faced many difficulties.

Some articles of Decree 65/2020 were suspended until December 31 this year. These provisions require professional individual investors to hold a bond portfolio totaling at least VND2 billion for 180 days or longer, and debt-issuing organizations to report their credit ratings and sell their bonds within 30 days.

Under the current regulations, official land prices are only amended every five years by the city government, and so the coefficient – (the K coefficient) or the number of times by which land prices are multiplied to match market prices – is adjusted every year.