Urgently Finalize the Amendment Drafts of the Housing Law and the Real Estate Business Law in May and June 2023.
The Government requires prompt completion of the draft amended Housing Law and the draft amended Real Estate Business Law in May and June 2023
Regarding the completion of the draft amended Housing Law and the draft amended Real Estate Business Law, as recorded in Section III Resolution 33/NQ-CP of 2023 issued by the Government, assigning the Ministry of Construction the task of resolving difficulties for the real estate market. Specifically:
- The Government requires the Ministry of Construction to promptly complete the construction dossier for the draft amended Housing Law, the draft amended Real Estate Business Law, reporting to the Government, and to the National Assembly for consideration and comments at the 5th session in May 2023,
And pass it at the 6th session in October 2023 to ensure consistency, feasibility, and uniformity of the legal system, aiming to complete and supplement the legal framework for the transfer of future real estate, tourism real estate transactions; sale and transfer from incompetent investors to competent ones to enhance liquidity and market development.
- Promptly complete and present to the Government for consideration and issuance the "Decree amending and supplementing some articles of the decrees under the state management of the Ministry of Construction"; "Decree on the process, sequence, and procedures for implementing commercial housing and urban area development investment projects".
In addition, the Ministry of Construction was also tasked with cooperating with the Ministry of Justice to focus on studying and building a report for the Government to submit to the National Assembly to consider issuing the "Resolution of the National Assembly on piloting some policies to promote the development of social housing" at the May 2023 session. Other tasks of the Ministry of Construction include:
- Actively and proactively chair and cooperate with ministries, and sectors to direct and guide localities and enterprises in effectively implementing the Scheme "Invest in building at least 01 million social housing units for low-income people, industrial park workers in the period 2021-2030" after being issued by the Government and the Prime Minister.
- Cooperate with the State Bank of Vietnam in implementing a credit program of approximately VND 120,000 billion and specific credit packages to allow investors and homebuyers of social housing projects, worker housing, and renovation projects for old apartments to borrow at preferential interest rates lower than market rates.
- Cooperate with ministries and sectors to direct and guide localities and enterprises in implementing Resolution 11/NQ-CP of the Government on the Program for Socio-Economic Recovery and Development, including listing projects, reviewing land funds, completing legal procedures, and selecting investors to implement social housing projects, industrial park worker housing, and renovating old apartments.
- Monitor the situation, trends, and market needs (types, segments of real estate) and report to the Government and the Prime Minister. Proactively cooperate with the Ministry of Information and Communications to disseminate and publicize policies, solutions, and results to remove obstacles and promote the safe, healthy, and sustainable development of the real estate market.
Prompt completion of the draft amended Housing Law and the draft amended Real Estate Business Law in May and June 2023?
Will there be a VND 120,000 billion credit package for social housing?
Section III of Resolution 33/NQ-CP of 2023 clearly states that the State Bank of Vietnam is assigned to lead the implementation of a credit program (credit package) of approximately VND 120,000 billion, directing commercial banks, primarily Agribank, BIDV, Vietcombank, Vietinbank to lend to investors and homebuyers of social housing projects, worker housing, old apartment renovation projects at preferential interest rates 1.5-2% lower than the average medium- and long-term interest rates of state commercial banks in the market.
In coordination with the Ministry of Construction and other ministries and central authorities, the relevant agencies will determine the list of projects, subjects, conditions, and criteria to benefit from the preferential lending program.
The Ministry of Construction indicates that the VND 120,000 billion credit package is equivalent to about 12% of the capital needed to promote the goal of completing at least one million social housing units, worker housing in the 2021-2030 period, to support investors and homebuyers of social housing projects, worker housing to borrow at low interest rates.
The Government directs the review and appropriate adjustment of risk coefficients in the real estate sector?
This is one of the tasks that the Government assigns to the State Bank of Vietnam in Section III Resolution 33/NQ-CP of 2023, implementing measures to resolve difficulties for real estate businesses and promote the development of the real estate market. Specifically:
- The Government directs the review and appropriate adjustment of risk coefficients for different real estate segments; review regulations related to lending and corporate bond investment to ensure alignment and suitability with the Government's policy on developing the corporate bond market.
Additionally, the Government assigns the State Bank of Vietnam several tasks:
- Direct credit institutions to assess the business situation of enterprises, the potential of each project, and type of real estate segment such as residential real estate suitable for people's income, social housing, worker housing; industrial, tourism, office real estate, etc., to appropriately adjust lending conditions without lumping policies with projects that pose risks.
- Urgently study and build a report for the Government to submit to the National Assembly concerning the construction dossier of the amended Credit Institutions Law according to the provisions of the Law on Promulgation of Legal Normative Documents.
- Operate monetary policy cautiously, proactively, flexibly, effectively, ensure reasonable credit growth, ensure liquidity for the banking system in all circumstances, and meet capital needs for the economy.
- Consider directing credit institutions to review and classify real estate projects to adopt appropriate measures (such as rescheduling principal, interest payments, restructuring debt groups…) in accordance with the law, ensuring the safety of the banking system, while also striving to reduce operating costs to create room for reducing loan interest rates for the economy, including homebuyers and real estate projects, contributing to resolving difficulties in credit capital for businesses.
- Direct credit institutions to facilitate real estate project investors and homebuyers in accessing credit sources;
- Continue allocating credit capital for legally qualified real estate projects, capable of product consumption, and ensuring debt repayment plans; especially for social housing projects, worker housing, residential housing suitable for people's income, and types of real estate serving high-efficiency production, business, and social welfare purposes, capable of debt repayment and development according to the Prime Minister's direction in Official Telegram 1164/CD-TTg of 2022.
LawNet