Want to be in the loop?
subscribe to
our notification
Business News
TWO MINISTRIES TO LAUNCH EXCHANGE FOR LAND USE RIGHTS
The establishment of a land use right exchange is vital for the centralised management of the realty sector.
The statement was made by Deputy Minister of Natural Resources and Environment Lê Minh Ngân at a governmental meeting on Monday.
Ngân said a market for land use rights had taken shape but was operating unstably due to the absence of a centralised platform.
The launch of such a platform would help investors obtain realty property more easily and provide the government with the tools to control realty prices more effectively.
"The need to establish a platform on which land use rights can be traded is urgent," said Ngân.
Deputy Prime Minister Trần Hồng Hà was all for Ngân's proposal. He said a centralised national platform for land use rights trading would create a conducive environment for private platforms.
What ministries had to do now to pave the way for the platform, Hà said, is to define its operational mechanics and its responsibilities towards businesses, set the criteria for their admission to the platform, and establish a mechanism under which data among platforms can be transferred.
Prior to the meeting, the Ministry of Natural Resources and Environment and the Ministry of Construction were working on a scheme to launch a platform on which land use rights can be traded.
Nguyễn Chí Thanh, deputy chairman of the Vietnam Association of Realtors, said the exchange would serve as a centralised hub where land use rights can be bought, sold, and exchanged.
However, its significance would extend far beyond transaction facilitation. It would pave the way for a real-time database whereby financial watchdogs can monitor real estate transactions more effectively.
In the long term, it would also deliver a correction to the realty market and thwart any attempt to create speculative bubbles on it.
"A land use right exchange run by realtor associations is not new to many countries, but not so be the one under the State's management," said Thanh.
The deputy chairman also said it would take a lot of time to get the exchange up and running, given the amount of work required to establish its legal framework and digital platform.
Trần Khánh Quang, director of the Việt An Hòa Real Estate Investment JSC, said the exchange would help unlock the full potential of the realty market by bringing sellers and buyers together in a single centralised platform.
Being managed by the Ministry of Natural Resources and Environment and operated by its provincial subordinates, it would also shield them against falling victim to manipulative pricing.
Its advantages are not confined to only sellers and buyers but also extend to governmental bodies by streaming market supervision and facilitating tax collection.
Đặng Hùng Võ, former deputy minister of Natural Resources and Environment, said only when the exchange is established as a State-authorised public service provider could it gain popularity at the grassroots level.
He also said the existing platforms for real estate trading were functioning as private service providers. They have no authority to verify transactions. Verification falls under the competence of notarial offices.
"A land use right exchange would be infeasible unless its ties with land registration offices and notarial offices are established," said Võ.
Realty expert Phan Công Chánh said the real estate platforms and the exchange would differ in that future property can be traded on the former whereas it would not be the case for future land use right on the latter.
Mai Văn Phấn, director of the Department of Land Registration and Information Database, said his department was working to lay the groundwork for the exchange and would soon report to the Prime Minister on its progress.
Source: VNS
Related News
![Card image cap](/uploads/news/Eco4.jpg)
GDP GROWTH REACHES 6.42 PC IN FIRST HALF
Vietnam's economy grew by 6.42 pc in the first six months of 2024, slightly lower than the figure of 6.58 pc in the same time of 2022 within the 2020-2024 period.
![Card image cap](/uploads/news/FDI.jpg)
FDI INFLOW INTO VIETNAM REACHES NEARLY 15.2 BILLION USD
Vietnam attracted nearly 15.2 billion USD in foreign direct investment (FDI) in the first six months of this year, a year-on-year increase of 13.1 per cent, according to the General Statistics Office.
![Card image cap](/uploads/news/Eco3%20%281%29.jpg)
CAPITAL FLOWS STRONGLY INTO INDUSTRIAL REAL ESTATE
Industrial real estate has had easier access to bank credit since July, when the State Bank of Vietnam (SBV) reduced the credit risk coefficient for industrial real estate from 200 per cent to 160 per cent, encouraging commercial banks to lend to more projects in the segment.
![Card image cap](/uploads/news/Eco8.jpg)
SPECIAL POLICIES PROPOSED TO DEVELOP THE SEMICONDUCTOR INDUSTRY
The draft law has proposed a number of outstanding policies to promote the development of the digital technology industry, develop the brand of Việt Nam's digital technology industry and develop domestic and foreign markets, as well as investing, purchasing and selecting suppliers of digital technology products and services using State budget capital.
![Card image cap](/uploads/news/FDI3%20%281%29.jpg)
CONGLOMERATES AID FOREIGN MANUFACTURING INVESTMENT
The manufacturing and processing sector is attracting major investment from abroad, thanks to the expansion of key conglomerates, especially from South Korea. With total revenues of about $16.2 billion and profit of $400 million last year, Hyosung Group, which works in textiles and garments, industrial materials, IT, construction, and chemicals, has expressed its plan to expand operations in Vietnam.
![Card image cap](/uploads/news/CN40.jpg)
ESTABLISHING NATIONAL COMPREHENSIVE DATABASE FOR DIGITAL TRANSFORMATION
Vietnam's Ministry of Public Security is drafting the data law project to unify, synchronize and effectively use data for administration and social economic development, for digital government development and for administrative procedure reform.