[NEWS] - Need to issue Decree 65 to amend the real estate market soon

Since the real estate market is facing many difficulties and the risk of freezing, it is necessary to have timely handling works. Falling into a problematic situation when factors on credit, business bonds are tightened and projects encounter legal problems, according to information about the problem of solving difficulties for the real estate market as follows: 

The real estate market is in a difficult position

From the period between May 2022 to now, policies to tighten credit, business bonds, ... as well as legal problems in the process of project implementation have not been thoroughly removed. , the market was forced to fall into a peaceful state.

Facing these difficulties, if not resolved, the market, as well as businesses, will gradually become weak, difficult to recover, and even impossible to recover. That will lead to many workers losing their jobs, affecting their social security lives. In recent times, it is not difficult to come across debates and worries about whether support capital will flow into interest groups or whether businesses have to solve their difficulties.

According to experts from the Vietnam Real Estate Brokers Association (VARS), the crisis story in capitalist countries has shown that, if the State ignores the market, the consequences will be incalculable. Therefore, the market needs the support and intervention of the State to return to the right trajectory.

Promulgating the amended Decree 65 soon to facilitate an effective bond issuance

Also from the middle of May 2022, the real estate market was almost unable to access capital for development. According to the housing market report in 2022 of the Ministry of Construction, the number of real estate businesses declaring bankruptcy and dissolution increased by 38.7% over the same period last year, which is estimated to be nearly 1,200 enterprises. If the difficulty in the capital cannot be solved, the number of real estate businesses forced to close or go bankrupt will increase. Create risks as well as the risk of failure for the commercial banking system. A series of production and business enterprises, factories, and factories of more than 30 related industries had to stop operating, and millions of workers fell into unemployment, increasing social unrest.

Experts also said that the real estate market capital solution is not to use budget money to solve difficulties, but to provide appropriate orientations, policies, and mechanisms to open the market, support the economy, and support workers and people. Legal review and removal, especially for the real estate market, will be the key to the recovery of the corporate bond market and real estate credit - two extremely important capital channels of the system. loans from project development enterprises.

Currently, the Ministry of Finance is also consulting on amending Decree No. 65/2022/ND-CP in the direction that it will give businesses 2 more years to be able to extend bond debt, reducing maturity pressure. However, the Vietnam Real Estate Brokers Association also expressed the view that the Government should soon issue adjustments to Decree No. 65 to facilitate and effectively issue corporate bonds. The statute of limitations of Decree 65 should be extended to 2025.

Regarding credit capital, it is also necessary to soon promote the implementation of credit packages for the construction of social housing projects, and workers’ houses with preferential interest rates for investors and home buyers to increase their income. providing social housing, creating transactions, and promoting business and production activities of related entities in the real estate ecosystem.

The thing that businesses in the real estate sector need most now is the State’s support in terms of mechanisms to be able to restructure goods, reflected in the permission to adjust a part of the project (in the process of completing the procedure). investment) and projects to the segment that is suitable for the needs of the market. If the enterprise develops bankrupt projects, the shortage of supply is even worse while the demand is always high, and the equilibrium price is difficult to lower. It is necessary to give opportunities for businesses to self-disassemble, create a more suitable supply, and help people buy houses at a suitable price.

Based on the above information, it is easy to see that the difficulty of the real estate market has a great risk of falling into a "freezing" state. As policies tighten credit, business bonds and legal problems hit. Therefore, it is necessary to amend Decree 65 to make it difficult to remove for the market. Besides, Indochina Holding is one of the enterprises capable of mobilizing capital from funds with the most favorable interest rates. At the same time, we also have a team of highly experienced staff that can assist small and medium enterprises in a variety of services such as optimal capital structure, financial advice, strategy consulting, and restructuring. … We have a wide network of partners nationwide and abroad.

Yen Dang (Collection Source)