PM requests better credit access for property developers, housing buyers

Prime Minister Pham Minh Chinh on Saturday ordered the State Bank of Vietnam to create favorable conditions for real estate developers and housing purchasers to access credit.

The freshly signed document seeks to promote the safe, healthy and sustainable development of the Vietnamese property market.

The cabinet leader emphasized that the property market problems are yet to be solved. "The preparation, approval and adjustment of planning schemes and project implementation remain slow; access to capital via credit, bond and securities markets still faces difficulties; and social housing construction and renovation as well as reconstruction of apartment buildings are yet to meet requirements."

The Ministry of Construction (MoC) was assigned to focus on studying amendments and supplements to the Law on Housing 2014 and the Law on Real Estate Business 2014; cooperate with the Ministry of Planning and Investment (MPI) in guiding localities to remove difficulties in the preparation and approval of planning schemes.

The MPI needs to coordinate with the Ministry of Public Security and other relevant ministries and agencies to review obstacles facing fire prevention and fighting in construction works to propose solutions before June 30.

For difficulties in the arrangement of land fund for social housing development, the MoC must guide localities to deal with them in accordance with law, and partner with the State Bank of Vietnam to deploy the VND120 trillion ($5.11 billion) credit program.

The central bank was asked to direct commercial banks to further reduce deposit and lending interest rates, creating favorable conditions for real estate developers and home buyers to access credit capital. It should strengthen inspection and urge credit institutions to implement solutions to support and promote the development of the realty market.

The Ministry of Natural Resources and Environment was requested to propose the government issue a decree amending Decree No. 44/2014/ND-CP dated May 15, 2014 on land valuation methods. It needs to devise and adjust land price brackets and make specific land price levels to submit to the cabinet for approval before June 30.

The MPI must coordinate with other ministries in guiding localities to remove difficulties and obstacles for real estate projects implemented in the form of build-transfer (BT) contracts before it is abolished in the Law on Public-Private Partnership. This work must be finished ahead of May 30.

The Ministry of Finance must promptly take effective solutions to promote the healthy and sustainable development of the stock market; and soon complete a report on the corporate bond market in 2023.

The PM ordered the Ministry of Public Security to quickly detect and strictly handle law violations in construction investment and real estate business activities, especially acts of spreading inaccurate information that causes negative impacts on the financial, credit, bond and real estate markets as well as the general development of the economy.

The chairpersons of the people's committees of localities were asked to direct reviewing projects facing obstacles for timely solutions. They must not abuse the consultation of central government agencies to avoid responsibility.