Ministerial Activities
The Construction Minister works with the Vietnam Real Estate Association
8/12/16 5:00 PM

Hanoi (August 12th 2016), the Central Party Committee member and Construction Minister Pham Hong Ha hosted the Conference to work with the Vietnam Real Estate Association (VREA). There were Deputy Minister of Construction Do Duc Duy, President of the VREA Nguyen Tran Nam, representatives of the units under the VREA, typical real estate enterprises and representatives of MoC functional departments and agencies attended the Conference.  

Minister Pham Hong Ha hosted the Conference

On behalf of the VREA, Mr Nguyen Tran Nam had presented reports on the VREA’s activities in the recent years. Along with the development of the real estate market in Vietnam, VREA’s activities expressed through works of social criticism, researching, traning, connection, investment promotion, and supports to the development of businesses community to contribute to the development of real estate market toward the healthy and professional direction.

The Association has coordianted with the MoC, ministeries and sectors in completing, changing and supplementing the Law of Real Estate Business, Law of Housing, Law of Enterprises, Law of Investment and documents under the legislation such as Decree, Circular… relating to the real estate market. In addition, the Association also hosted and co-organized several seminars and workshops to clarify policies for the real estate market and suggest the market difficulties to the State management agencies.

The real estate market has developed stability in the first 6 months 2016, but still had potential risks such as unbalance of goods structure, lack of products in the medium and low prices segment, the slow down tendency in development of social housing, undeveloped of renting house segment; the inadequate, unsystematic and uncomprehensive information; the capacity of investors were weak in term of both financial and management, stated Nguyen Tran Nam.

Speaking at the conference, ideas and suggestions of representatives from the number of typical real estate enterprises such as CEO Group, Global Property Company, FLC Group, Vietnam Tourism Property Association, Vietnam Real Estate Brokers Association mainly focused on issues such as transparency of the real estate market information, the inconsistence between laws and issued documents; the slow formation of capital market for medium and long term; matters of time, procedures and source of funds for social housing development; problem of selling houses to foreigners, renovation old apartments, supplying building materials for social housing projects.

On behalf of MoC’s leader, Deputy Minister Duy answered the participants’s worries and noted that MoC would amend and modify laws and documents relating to housing and real estate.

Minister Pham Hong Ha evaluated the real estate market in the first 6 months to still maintain the growth trend and develop sustainability. According to Minister Ha, the domestic real estate market had no unfavorable signs but there was unbalance between supply - demand in the segment of commercial housing and social housing.

The whole working scence

Currently, demand for social housing is about 10 million m2 but only meet to 3 million m2.

The real estate enterprises should pay attention to credit loans because of majority of credits focused on some high-end real estate projects and a number of investors leading to potential risks of supply - demand liquidity, said Minister Ha.
Minister Ha asked the VREA to mainly focus on development of social housing to serve for the needs of mass of people with medium and low income.

Before the developing situation of Vietnam Real Estate market today, the MoC has outlined 6 fundamental solutions to better control the market such as: The tranparency of real estate market information, strengthening works of training, dissemination and implementation policies and legislation; researching a number of new mechanisms; strengthening and improvement the quality of State management, reducing administrative procedures for construction permits granting; promoting the development of social housing and considering the problem as the pillar of social welfare policy; implementing the legislation and regulations to ensure benefits for the parties participating to the real estate market; strengthening inspection but keeping away from deterrent of enterprises’ operation; ending the overlap of inspection and examination work in the field.

Minister Pham Hong Ha paid his desirable that besides sending the commends and proposals in writing to the MoC, the real estate enterprises could send commends directly to the Minister to help the direction and administration work rapidly and timely.

Written by: Ninh Hanh
Translated by: Mai Anh