Deputy PM requests new working group to remove obstacles facing Novaland projects

Deputy Prime Minister Tran Hong Ha has assigned the Ministry of Construction and the Ministry of Natural Resources and Environment to set up a working group to remove obstacles facing leading property developer Novaland's real estate projects in the provinces of Dong Nai and Binh Thuan.

The request was sent out by the Government Office on Tuesday, and the working group must report its results to the Deputy Prime Minister before April 15.

In mid February, Novaland asked the government for a supportive mechanism to help the ailing real estate sector deal with current market woes, including a credit crunch and legal procedures.

Speaking at a national meeting chaired by Prime Minister Pham Minh Chinh to tackle problems in the property market, Novaland chairman Bui Thanh Nhon said the Government and the State Bank of Vietnam (SBV) should allow banks to extend payment periods by 2-3 years for loans to real estate developers as a way to help the market and businesses recover.

Novaland also said it expected the SBV to allow the restructuring of loans provided to property buyers who are supported by developers in terms of payment. Banks should also consider cutting interest rates for individual buyers, Nhon said.

He proposed the Government radically remove legal obstacles that have caused market bottlenecks.

Nhon asked for his corporation’s Aqua City urban area project in the southern province of Dong Nai to be selected as a pilot scheme for the working group to solve legal problems. Aqua City is a life-or-death project for Novaland at present.

Novaland, Vietnam's fourth-biggest listed property developer, is undergoing an overall restructuring process. It is working with foreign shareholders, partners, and experts from companies like EY- Parthenon, Red Capital, and law firm YKVN on comprehensive shake-up solutions.