Vietnam Real Estate Association Needs an open decree to transfer the project

DNHN - Vice Chairman of the Vietnam Real Estate Association stated, "An open decree is required to transfer projects, particularly those that are nearing completion."

According to Dr. Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association, to solve the current market problem comprehensively, policies must be handled more quickly and in greater detail, particularly for social housing. Mr. Nguyen Van Dinh emphasized: "At this time, this is a product that will stimulate more transactions in a market that is severely devoid of them. With the right product, the trading index will rise, and the reels will become stable once more."

The Vice Chairman of the Vietnam Real Estate Association also stated that it is necessary to develop and swiftly publish regulations governing the handling of documents and procedures for investors, including the phases of project transfer, bidding, auction, land price approval, investor selection, and so forth. According to data compiled by the Vietnam Real Estate Association, these are the most complex issues.

Mr. Dinh illustrated with a real-world example that if the land price is not approved, the construction permit will not be issued. Therefore, project transfer is an issue that investors are eager to address shortly.

"After two years of the pandemic, enterprises have been severely weakened, cannot access capital, and must transfer projects to capable investors to eliminate debt and obtain new capital... However, a book is required by the regulations. Mr. Nguyen Van Dinh stated, "The red book has just been transferred, and many projects are just getting off the ground, but it still takes many years to obtain a red book."

In light of this, the Vice Chairman of the Vietnam Real Estate Association proposed: "It is necessary to have an open decree to be able to transfer projects, particularly nearly completed projects... bringing new projects to the market, thereby increasing the supply of goods."

Additionally, businesses must restructure to reduce production and business costs, not only to ensure their survival but also to reduce product prices.

According to HoREA, the transfer of a project or a portion of a project is a "normal" business activity under the "autonomy of production and business" stipulated in Article 7 of the Law on Enterprises 2014, 2020.

"It is believed that, if the transfer of an "open" project is permitted, a project could be transferred multiple times, resulting in a "price team" of housing or businesses "taking advantage of a portion" of the project. transferring "making price differences and illegally profiting. In a market economy, however, prices are determined by market forces and not by subjective preferences. Mr. Le Hoang Chau asserted that businesses and the government possess a variety of tools for managing and controlling the real estate market.

Moreover, when transferring a project, a portion of a project, the enterprise must pay taxes, overcome the situation of "underground transfer, hiding" in the form of transferring shares, changing shareholders, and transferring enterprises (project transfer) can lead to revenue loss, loss of state budget revenue, and a reduction in the market's transparency.

The law on land, according to HoREA, stipulates that investors in a project are only granted land use right certificates once they have satisfied their financial obligations to the state. This monetary obligation is satisfied only once. Typically, the project transferee is an economically viable organization. Consequently, it is entirely feasible to stipulate that the transferee is responsible for fulfilling this obligation and that there is no "risk" of revenue loss or state budget revenue.

P.V (t/h)