Business News

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.

Speaking at a forum last Friday, Nguyễn Quốc Hiệp, chairman of the Việt Nam Association of Construction Contractors, said the market would continue facing prolonged hurdles such as a lack of access to capital, credit tightening, legal bottlenecks and delays in bond payments.

A new government resolution has tasked the State Bank of Vietnam (SBV) with overseeing the execution of a $5 billion lending scheme and coordinating with commercial banks to ease the burdens in the property sector and promote development.