PM urges promote of credit lending to real estate businesses

Prime Minister Pham Minh Chinh yesterday signed to issue official Telegram No. 1376/CD-TTg on continuing to drastically, promptly and effectively implement solutions to sustainably promote the healthy development of the real estate market.

Real estate businesseses are facing difficulties

The Prime Minister requested ministries, agencies and localities to consider this as one of the urgent and important tasks that need to be focused on to solve the arising problems. He ordered that if bottlenecks reared their ugly head, responsible agencies must take measures to solve them thoroughly; plus, he required no agencies to abdicate responsibility.

The Prime Minister assigned the Minister of Construction to resolve difficulties and obstacles in legal procedures, speed up the implementation of real estate projects, especially housing projects in urban areas, and large industrial parks as well as accelerate decentralization and authorization and cut unnecessary administrative procedures.

Meanwhile, he asked the Minister of Construction to strengthen inspection and examination of the handling of administrative procedures relating to real estate projects, resolutely handling delays that lead to complaints from inhabitants and businesses. At the same time, the Ministry of Construction was urged to continue to monitor, direct, urge and guide localities and businesses to promote social housing development, further promote the implementation of the investment project in the construction of at least one million social housing apartments for low-income people and industrial park workers in the period 2021-2030.

Last but not least, the Ministry of Construction was assigned to propose new, more effective solutions to strongly promote disbursement for social housing. It must send a report to the Prime Minister before December 31.

The Prime Minister ordered the Minister of Natural Resources and Environment to immediately establish specialized working groups to urge and guide local administrations, especially those in big cities such as Hanoi, Ho Chi Minh City, and Da Nang to resolve problems related to land allocation, land leasing, land price determination, planning and annual land use planning.

Moreover, the Ministry must strengthen inspection and examination of the handling of procedures for determining land prices for real estate projects, promptly detect and resolutely handle cases that cause hiccups along the way resulting in delays and residents’ complaints.

The Governor of the State Bank of Vietnam (SBV) was assigned to continue to closely monitor developments in the real estate market and real estate credit, from which the SBV Governor should have solutions to remove difficulties in credit growth for production and business and promote growth and macroeconomic stability.

Additionally, the governor must continue reviewing to have effective practical solutions for the promotion of credit lending to real estate businesses. Finally, the governor should instruct commercial banks to help businesses, real estate projects and home buyers access credit capital more conveniently and promptly to remove difficulties in capital and cash flow.

Furthermore, the Prime Minister directed chairmen of people's committees in provinces and cities to direct responsible agencies to focus on further accelerating the progress of resolving investment procedures, land allocation, and land lease in addition to the issuance of decisions on land prices for the early implementation of real estate projects, with priority given to the construction of industrial real estate projects, social housing, and worker housing.

Localities should check and make a list of real estate projects in the area with a focus on the classification and identification of legal difficulties and causes and send them to competent authorities for handling. Chairpersons of people's committees of provinces and cities are responsible to the Prime Minister for any delays that affect the progress of implementation of investment projects.

According to the PM’s guidance, local administrations should focus on effectively implementing the investment project of the construction of at least 1 million social housing apartments for specific groups from 2021 to 2030 and the VND120 trillion (US$4.96 billion) credit program for construction projects of social housing, housing for workers, renovating and rebuilding dilapidated apartment buildings.

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