Business News

HCM City plans to put projects under the Build-Transfer (BT) investment model under more scrutiny by auctioning land instead of offering it in exchange for infrastructure.

The HCM City People’s Committee has proposed that the Ministry of Construction apply a high tax on second and subsequent homes, as well as when there are a high number of real estate transactions within a year.

The HCMC Government has proposed the Ministry of Construction increase the property tax on owners of the second home and land lot that change hands within a year, an apparent move which is aimed at warding off real estate speculation.

Shares rose further on the HCM Stock Exchange on Friday morning, led by banks and property firms. The benchmark VN Index added 0.35 per cent to close at 831.86 points. It gained 0.15 per cent on Thursday.

At the recent Vietnam Finance Forum 2017 in Hanoi, many economists pointed out that it is time to reform the national financial system and focus on tariffs such as added value (VAT) and commodity tax to ensure a sustainable source of funding.

To shape a stable, transparent, non-speculative and non-bubble real estate market, the Ministry of Construction is completing the project on “Assessing the market, forecasting medium-term trends, proposing solutions and mechanisms to promote stable and healthy market development” to submit to the Prime Minister in late 2017.

Since the beginning of 2017, the real estate market of Vietnam has recovered its strength and become increasingly attractive to foreign investors with many large corporations accelerating their investment in Vietnam. According to many experts, in the last months of the year, cash flow into the sector will continue to increase sharply through the merger and acquisition (M & A).

Despite having fallen to the fourth position in terms of foreign direct investment in the first eight months of 2017, the real estate sector remains the second-biggest recipient of this type of investment to date.