The Vietnam Real Estate Association has proposed the Government develop measures with a focus on credit and tax support to aid the property market. (Photo: VNA) Hanoi (VNS/VNA) - The Vietnam Real Estate Association has proposed theGovernment develop measures with a focus on credit and tax support, togetherwith improving the legal framework for new property products so as to aid theproperty market to overcome this difficult period.
In a recent document sent to Prime Minister Nguyen Xuan Phuc, the associationpointed out the real estate market had seen signs of decline since the end oflast year due to crashes caused by the lack of legal framework for thedevelopment of new property products and the recent outbreak of the novelcoronavirus (COVID-19).
Many real estate developers were at risk of falling into bankruptcy as sales oftheir projects and the construction of new projects were both stagnant,according to the association.
The association proposed several measures to support the property market.
First, focus should be placed on credit and tax support measures.
Specifically, the association proposed rate cuts for loans in tourism propertyproducts like condotels and officetels. In addition, commercial banks shouldconsider debt rescheduling and provide preferential loan packages for propertycompanies.
Tax incentives were also proposed, including a six-month extension for paymentto the State budget for one year after COVID-19 was brought under control,exemption of fines for late payment when companies paid taxes fully andreductions in value added tax.
The association said that it was also vital to improve the legal framework ontourism property to promote healthy and stable development of the real estatemarket, including for products like shophouses and shoptels.
Notably, the association also urged support related to capital sources for thedevelopment of social housing projects.
Many social housing project developers like AZ Thang Long, Hoang Quan, CapitalHouse and Eurowindow Holding said that they were facing difficulties in salesas buyers were not provided with preferential loans, according to theassociation.
As the demand for the social housing segment remained huge in Vietnam, theassociation proposed the Government to increase credit support for low-incomeearners in buying homes through two channels, namely the Vietnam Bank forSocial Policies and commercial banks with State holdings.
The administrative procedure reforms must also be hastened to save time andmoney for businesses and citizens, the association said.
The association pointed out that investment in construction was currentlyregulated by a dozen laws and a number of decrees and circulars. There weremore than 20,000 technical standards and norms existing in all stages of aproject, which were pushing up costs for compliance and causing loss ofopportunities to businesses.
The Vietnam Chamber of Commerce and Industry recently also revealed overlapsand inconsistencies among the legal documents in the fields of investment,land, construction, housing, environment and real estate business.
According to the General Statistics Office, only 790 real estate firms werefounded in the first two months of this year, a drop by six percent over thesame period last year, reflecting that the real estate market was struggling.
The COVID-19 epidemic also had significant impacts on the real estate market,especially resort property and industrial property.
According to statistics from the Business Registration Department, the numberof real estate firms temporarily halting operation or dissolved reached arecord of 589 and 686 in 2019, up by 36.8 percent and 39.4 percent,respectively.
The Vietnam Real Estate Association also saw considerable declines in bothsupply and transactions. More than 107,000 products were released into themarket in 2019, equivalent to only 61.5 percent of 2018 with 72,000transactions, equivalent to just 64.7 percent./.
VNA
