DIRECTIVE

SOLUTIONS FOR SAFE, HEALTHY, AND SUSTAINABLE DEVELOPMENT OF REAL ESTATE MARKET

In recent times, worldwide political and economic situations behave unpredictably and have greatly influenced Vietnam’s economic openness. The Government has then coordinated in order to stabilize macroeconomic situation, control inflations, ensure major balances, recover the economy and achieved a relatively high growth rate compared to other countries in the region and around the world.

On October 11, 2021, the Government promulgated Resolution No. 128/NQ-CP; Resolution No. 01/NQ-CP dated January 8, 2022; Resolution No. 02/NQ-CP dated January 10, 2022; Resolution No. 11/NQ-CP dated January 30, 2022. Specifically, the 13^th Central Executive Committee of the Communist Party promulgated Resolution No. 18-NQ/TW.

The active compliance of departments, local governments and enterprises with Resolutions issued by the Communist Party, the Government, regulations, coordination, command of the Government has positively affected socio-political situations, secured social security, and stabilized macroeconomic situations.

The real estate market plays a vital role in stabilizing macroeconomic situations, controlling inflations, ensuring major balances, and promoting growth. However, despite some positive results, real estate development in recent times has revealed a variety of difficulties, drawbacks, disadvantages and underlying risks, such as: unreasonable proportion of real estate commodities, prices of real estate commodities, especially housing prices are relatively high compared to income of the general public, database on real estate market is inconsistent, inadequate, unreliable, etc.

Difficulties and drawbacks that must be resolved are: regulations relating to real estate market have not met practical demand, have not been promptly amended; the development of real estate projects in some provinces has not complied with planning, met market demand; investment procedures are spread across multiple legislative documents and involve multiple steps which lengthen investment procedures; the fact that real estate trades are not required by law to be made via exchange has given way to “fictional” projects, customer frauds, difficulties for the government in managing real estate information, tax deficit, state budget deficit; state management has not been sufficiently strict, prompt, and adequate, etc.

In order to rectify the aforementioned difficulties and drawbacks and ensure a safe, healthy, sustainable real estate market, the Prime Minister hereby requests:

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1. Review regulations to deal with current and long-term problems by developing health, appropriate, and effective policy instruments in order to ensure connectivity, safety, and surety between capital market and real estate market, diversify funding sources of real estate market; promote decentralization, research thoroughly, propose pilot implementation of policies creating new drive for market development.

2. Steadfastly develop real estate ecosystem in a safe, healthy, sustainable manner; refrain from limiting credit in an unreasonable manner, enhance inspection and supervision, enhance state management; refrain from criminalizing economic-civil relations; discover, prevent, and take actions against violations of regulations and law, especially tax evasion in real estate trading, protect people on the right, protect and harmonize benefits of the government, the general public, and enterprises.

3. Harmoniously, reasonably, and effectively cooperate fiscal policies and monetary policies, implement monetary policies in a flexible, safe, and careful manner, expand fiscal policies reasonably, focus on ensuring effectiveness, closely monitor prices and market; refrain from regulating policies “abruptly”, refrain from suddenly transitioning from “loose” to strict control or vice versa.

4. Ministries, departments, and local governments focus on implementing solutions and tasks under Resolution No. 11/NQ-CP of the Government.

5. Focus on implementing solutions for attracting investment, attracting production, trade, creating jobs, stabilizing macroeconomic situations, controlling inflation, and ensuring major balances of the economy.

6. Specifically and accurately assess situations and supply-demand in order to develop real estate market on the basis of respecting market rules, competitive rules while exercising management role of the state and policy instruments to promptly interfere and control when necessary, prevent market manipulation and speculation, etc.

7. Identify market niches, demands, such as industrial real estate, worker houses, houses for persons with low income to drive the market, focus on social security, create opportunities for persons with low income, “do not trade advancement and social justice for pure economic development”.

8. Develop infrastructures to create new development space, new development drive, promote establishment of enterprises, service areas, and urban areas.

9. Enhance inspection, examination, and audit to resolved difficulties, protect the market, protect assets, and protect humans, do not legitimize violations but carry out subjective assessment to find causes and solutions for practical difficulties.

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II. SPECIFIC TASKS AND CENTRAL SOLUTIONS

1. Ministry of Construction shall

a) research and finalize legal system relating to real estate sector, ensure consistency, resolve difficulties, enable stable and healthy development of real estate market, develop real estate information system connected with land information, finalize legal basis and enhance cashless payment in real estate trading. According to which, request the National Assembly to approve amended Law on Houses, amended Law on Real Estate Trading to create the legal framework for real estate trading and improve management effectiveness of real estate market, amend Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government, Decree No. 49/2021/ND-CP dated April 1, 2021 of the Government.

b) take charge and cooperate with relevant ministries in researching and promulgating regulations guiding procedures for housing, urban area projects.

c) monitor real estate market; on a quarterly basis, report to the Prime Minister regarding real estate trading situations and real estate situations in Vietnam and propose solutions for stable and health development of real estate market.

d) inspect and examine compliance with regulations on real estate trading, operation of real estate exchange, real estate brokerage; cooperate with People’s Committees of provinces in organizing inspection, reviewing housing projects and real estate projects to request competent authorities to revoke, suspend, revise, or transfer real estate projects as per the law.

dd) take charge and cooperate with relevant ministries in establishing task forces to direct, guide, and encourage local governments to implement Resolution No. 11/NQ-CP of the Government.

e) direct, guide, and cooperate with local governments in re viewing, revising planning, allocating land fund for social housing and worker housing development as per the law, strictly comply with regulations where 20% of land fund in housing, urban area projects is reserved and fulfill social housing and worker house demand in the area.

g) direct, guide, and cooperate with local governments in reviewing, producing, and publicizing list of developers of social housing, worker house, used apartment building renovation projects eligible for 2% interest loan via commercial banks.

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i) finalize and publicize housing and real estate information system.

2. Ministry of Finance shall

a) amend Decree No. 153/2020/ND-CP dated December 31, 2020 of the Government.

b) control capital mobilization of real estate trading enterprises on the stock market to prevent price manipulation, speculation.

c) cooperate with State Bank of Vietnam in inspecting and supervising compliance with regulations and law on issuance, investment, and provision of services relating to corporate bonds, especially the issuance of privately placed bonds of real estate enterprises, credit institutions related to real estate enterprises, enterprises with large issuance quantity and high interest, enterprises incurring a loss in their business, issuing enterprises without collateral.

d) direct, guide implementation and capital mobilization (including bond issuance) of real estate trading enterprises as per the law; facilitate and do not prevent enterprises (with sufficient capacity and good, healthy business results, etc.) from mobilizing capital to finance recovery and development.

dd) research and develop tax policies that suit practical situations in order to encourage the effective use of house and land, restrict speculation of house and land, guarantee reasonable and stable revenues for state budget while adhering to socio-economic conditions of Vietnam and international practice.

3. Ministry of Planning and Investment shall

a) direct, encourage, guide local governments, propose solutions for resolving difficulties, cutting unnecessary administrative procedures in investment procedures, approval of investment guidelines, decision on investment and issuance of investment registration certificate for housing, real estate projects to support and increase supply for the market.

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4. Ministry of Natural Resources and Environment shall

a) cooperate with Ministry of Finance and Ministry of Justice in researching, reviewing, and amending applicable regulations relating to bidding for land use right (regulations on bidding, land, tax administration) while ensuring consistency and adhering to local conditions.

b) inspect and direct local governments to prevent and take strict actions against violations in bidding for land use right in a manner complying with the law.

c) control indicators regarding planning and plans using land in order to adhere to land planning of sectors and avoid lawsuits.

5. Ministry of Public Security shall

Take charge, cooperate with Ministry of Finance, State Bank of Vietnam and relevant authorities in acknowledging macroeconomic situations; take charge and cooperate with Ministry of Construction and Ministry of Finance in taking strict actions against violations in operation of real estate trading platform and real estate brokerage, tax evasion, misinformation, and negatively impacting operation of financial market, credit, real estate.

6. Ministry of Information and Communications shall

Direct press authorities to promptly, officially, accurately, and adequately provide information on real estate market, stock market, bond market; take strict actions against providing misinformation or negatively affecting operation of financial market, credit market, real estate.

7. State bank of Vietnam shall

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8. People’s Committees of provinces and central-affiliated cities shall

a) produce, appraise, and approve urban, rural construction planning, land use planning and plans; maintain transparency of construction planning information, list, progress of infrastructure development projects, real estate projects, especially major projects, and merger, upscale of administrative units; prevent the spreading of information which serves to surge price and the speculation.

b) develop Housing development programs until 2025 and 2030 and 5-year and annual housing development plans in accordance with the Law on Houses which identifies list of housing projects in order to approve investment guidelines of housing projects in the area.

c) review and produce list of housing, real estate projects in the area; assess reasons and causes of projects whose investment guidelines have been approved but have not been implemented in a timely manner. Focus on resolving difficulties regarding legal matters and procedures for investment preparation of housing projects in order to increase supply for the market.

d) publicize list of projects, land fund, procedures for housing and real estate development to attract investment; enable domestic and foreign investors to access and participate in housing, real estate investment.

dd) focus on coordinating, assigning land, selecting investors of real new real estate and housing projects to increase supply for the market.

e) promote auctions for land use right, bidding for investors of projects using land in order to increase supply of commercial housing projects for real estate market.

g) implement solutions for promoting development of social houses and worker house in the area:

- e) direct, guide, and cooperate with local governments in re viewing, revising planning, allocating land fund for social housing and worker housing development as per the law, strictly comply with regulations where 20% of land fund in housing, urban area projects is reserved and fulfill social housing and worker house demand in the area.

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- Review eligibility and conditions thereby producing and publicizing list of project developers of social house, worker house, and used apartment renovation projects eligible for 2% interest loan via commercial banks as per the law.

- Cooperate with Social Policy Banks of provinces in reviewing and consolidating demands of individual and household borrowers who take loan to purchase, lease purchase social houses and houses for workers; build new or renovate, repair houses in accordance with Article 16 of Decree No. 100/2015/ND-CP, Clause 10 Article 1 of Decree No. 49/2021/ND-CP and relevant documents.

h) finish quality assessment of remaining used apartment buildings in the area in order to determine apartment buildings that must be demolished; produce and approve plans, list of apartment building renovation and reconstruction projects in accordance with Decree No. 69/2021/ND-CP.

i) control, detect, prevent, and take strict actions against violations in auction for land use rights.

k) develop solutions for managing, preventing split of land, “land subdivision” in areas where investment is not permitted or infrastructures are lacking; improve control of operation of real estate exchanges, organizations and individuals engaging in real estate brokerage; rectify over-the-counter trading, “price manipulation” causing confusion on real estate market.

l) review projects that use land but fail to implement in a timely manner thus lead to the construction being derelict or used for the wrong purpose and land being wasted; cooperate with relevant authorities in reviewing, taking actions within their competent and regulations on land, other relevant regulations to bring land fund into effective use.

m) Closely monitor, acknowledge information and development of the market and adopt solutions for stabilizing the market, preventing the surge of real estate price and real estate bubble.

n) enhance inspection and take strict actions against violations of the law regarding real estate trading, land, construction, and applicable regulations (if any).

9. Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of People's Committees of provinces and cities are responsible for acknowledging and implementing this Directive and producing 6-monthly and monthly report to Ministry of Construction for presentation to the Prime Minister.

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PP. PRIME MINISTER
DEPUTY PRIME MINISTER




Le Van Thanh