Activities

This morning (November 13, 2023), the State Bank of Vietnam coordinated with the Ministry of Construction to organize a conference on credit for real estate and social housing development. The conference was co-chaired by Governor of the State Bank of Vietnam Nguyen Thi Hong, Minister of Construction Nguyen Thanh Nghi, Permanent Deputy Governor of the State Bank of Vietnam Dao Minh Tu, and Deputy Minister of Construction Nguyen Van Sinh.

Also attending the conference were representatives of ministries including the Ministry of Public Security, Ministry of Finance, Ministry of Planning and Investment, Ministry of Natural Resources and Environment, and Ministry of Justice. Departments and bureaus of the State Bank, State Bank branches in provinces and cities and General Directors of 14 credit institutions headquartered in Hanoi (with outstanding real estate credit of over VND 20,000 billion)....

Notably, the Conference had the participation of real estate associations and 26 enterprises operating in the real estate sector with many big names such as Vingroup, Becamex, Novaland, Him Lam, Sun Group, Masterise, Global Real Estate, Ecopark, Phu My Hung, Hung Thinh, IMG...

Overview of the online conference on the implementation of the Prime Minister's telegram to remove difficulties for the real estate market, on the morning of November 13.

The meeting took place in the context that many real estate businesses are having difficulty accessing capital sources, although the State Bank has adjusted the operating interest rate 4 times, real estate businesses are still facing difficulties with high-interest loans. Because real estate businesses do not meet the conditions for borrowing capital because their health has long been weakened along with the difficulties of the market.

A group of businesses that are eligible to access capital sources and have the capacity to absorb capital are facing legal problems. A group of businesses that are ready to access capital sources are facing difficulties due to difficulty in absorbing because interest rates are still at a high level compared to the businesses' tolerance. A group of remaining businesses are not even qualified to pass the document assessment round to access capital because they still have many outstanding debts, which could pose risks to banks.

A recent survey by VARS of more than 500 real estate investment and service businesses shows that capital is still a persistent difficulty, haunting many real estate businesses. More than 70% of businesses said that mechanisms and policies to remove difficulties in capital sources have not really had an impact on businesses.

Chairman of Vinhomes hopes the Government will find ways to remove difficulties for real estate businesses

Speaking at the conference, Mr. Pham Thieu Hoa, Chairman of the Board of Directors of Vinhomes JSC, expressed his hope that the Government and leaders of ministries and branches will support and find ways to remove difficulties for real estate businesses.

Mr. Hoa suggested that in the past, the regulation on credit room restrictions has made banks consider choosing customers when lending. Prioritizing lending to customers who accept high interest rates makes the actual interest rate level not as expected.

Vinhomes' representative also pointed out that the issue of real estate collateral being undervalued when the market is "frozen" is one of the current problems. In addition, many banks only disburse loans to customers with real estate collateral. Other assets such as machinery and equipment, listed stocks, etc. make it very difficult for customers to borrow.

Regarding Circular 06/2022 of the State Bank, Mr. Hoa said that there are conditions for lending on deposits or performing obligations, credit institutions blocking disbursed money is becoming a barrier in the market. "When company A borrows to deposit for company B. Company B also borrows money, so company A's deposit is blocked. This regulation of the bank is too strict. I think we should not interfere deeply in this administrative procedure", Mr. Hoa said.

Novaland CEO worries that bankruptcies will increase sharply if difficulties are not resolved

Speaking at the conference, Mr. Dennis Ng Teck Yow - General Director of Novaland Group said that legal difficulties - account for 80% of current difficulties of real estate enterprises and cause many bad consequences. If not resolved promptly, the number of dissolved and bankrupt enterprises in the following months will increase.

"We respectfully request that the Government coordinate with the People's Committees of provinces/cities to complete the master plan, creating conditions for real estate enterprises to develop projects in a synchronous manner in accordance with the assigned targets. The Government and the National Assembly should consider reviewing and perfecting the Investment Law so that the Investment - Land Allocation - Planning - Construction Permit Process can take place quickly, transparently, and save capital for society.

We recommend that the Government have solutions to thoroughly resolve problems related to unsynchronized legal procedures, problems from each period and not retroactively. We respectfully request that the Government direct the Ministries, Departments and Branches to have policies to reduce taxes and defer corporate income tax for real estate enterprises to remove difficulties and focus on stabilizing business in 3 years (2022, 2023 and 2024)", the General Director of Novaland proposed.

Vice Chairman of Hung Thinh Corporation proposes to simplify real estate lending conditions

Mr. Nguyen Van Cuong, Vice Chairman of Hung Thinh Corporation, said that recently, Hung Thinh Corporation has strongly restructured and is determined to restore production and business. Recently, LPBank, after carefully studying our projects, decided to grant a loan limit of VND 5,000 billion. LPBank's credit package helps to remove capital bottlenecks for businesses in Hung Thinh Corporation and hundreds of contractors in unfinished projects.

Mr. Cuong also made two proposals to the State Bank: "We propose that the State Bank have a policy to loosen credit room for banks participating in restructuring the real estate market, effectively implementing the Party and State's guidelines. Second, in the legal conditions of real estate projects being implemented for a long time as in the past, we suggest that banks simplify lending conditions for real estate projects, and at the same time extend the lending period longer than usual so that businesses have more time to cope in the current difficult context."

Nguồn: https://cafef.vn/vingroup-novaland-sun-group-masterise-sunshine-grouphop-nong-voi-nhnn-va-bo-xay-dung-188231113101410683.chn