PM tasks government bodies with untangling property market issues

The Ministry of Construction was ordered to propose changes to the overlapping regulations that hinder the development of property, housing and urban projects, the prime minister said in a statement Wednesday.

The official said the ministry needs to review and select investors to develop social and worker housing projects to meet the one-million social housing target within the next 10 years.

Chinh asked Nguyen Thi Hong, governor of the State Bank of Vietnam, to direct commercial banks to reduce administrative costs and procedures that hinder the provision of capital to property firms.

Banks need to lend quickly to qualified property projects and businesses that are able to repay loans, especially social housing projects, worker housing, and commercial housing at affordable prices, he said.

The Ministry of Finance was tasked with reviewing corporate bonds and coming up with solutions to remove ongoing problems in the market.

Property developers need to restructure their customer base, prices and other details to make it more convenient for buyers.

The property market accounts for around 11% of Vietnam’s GDP and has created many jobs. However, since the beginning of the year, the market has faced many difficulties, with transactions decreasing sharply and many projects suspended due to a lack of capital.

In mid-November, Prime Minister Chinh established a working group to remove obstacles in the property market.