(VOVworld) – Vietnam’s real estate has remained gloomy so far this year. Overstocked real estate and bad debt are two major issues that need to be resolved immediately. In the monthly government meeting for March, one of the key discussions involved measures to remove hurdles for the real estate market and credit support for households and individuals, enabling them to buy social and commercial houses. VOV’s To Tuan looks at the issue.

Solution to restore real estate market (Photo: Vietnam.vn)

Frozen market and high inventory were common features of Vietnam’s real estate market last year. The situation doesn’t seem to have improved much this year. In this context, the government and central steering committee on housing policy and real estate market have proposed preferential loans for businesses and first time home buyers and that foreigners should be able to own apartments in Vietnam. The government has asked the State Bank of Vietnam to reserve up to 1.9 million USD as loans for the purchase and rent of social houses and support for investors of these projects. Deputy Prime Minister Hoang Trung Hai highlighted programs for this year that include fixing difficulties for capital resources, the progress of disbursement, credit interest rates for social housing programs, and tight management for the 20% land reserve to build social houses for low-income earners. Mr. Hai called for ‘checking and selling all the completed social housing projects which have not been filled in Hanoi and Ho Chi Minh City. Social housing projects which have been postponed due to the lack of capital should be supported to change into other investment forms in order to attract customers.’

Government solutions have been responded to positively. Nguyen Hoang Chau, President of Ho Chi Minh City’s Real Estate Association, said these measures are appropriate for the current situation. Chau said ‘to make the real estate market develop transparently and sustainably, it’s necessary to develop close coordination among the government, the banking system, enterprises, and investors.’

Minister of Construction Trinh Dinh Dung underscored the need to outline long-term development strategies for the market adding that ‘social housing receives a great deal of financial support from the state through exemption from land use tax and the reduction of value added tax. This is an indirect stimulus-package. Once it’s implemented successfully, it will help settle difficulties in the housing, real estate, and the construction and construction supply sectors.’

Deputy Prime Minister Hoang Trung Hai, who also heads the central steering committee on housing policy and real-estate market, said state solutions and policies have been developed to help the industry. The remaining work depends on how enterprises and provinces will respond to result in the best outcomes.

To Tuan