NEW GOVERNMENTAL RESOLUTION ON PROMOTION OF REAL ESTATE MARKET

On 11 March 2023, the Government has issued Resolution 33/NQ-CP (“Resolution”) on certain solution to promote the real estate market. The Resolution shall focus on certain main tasks and solutions on (i) institutional improvement, (ii) Promoting social housing, (iii) Credit capital, (iv) Corporate Bond Capital and (v) Implementation of local government with the details as below:

1. Institutional improvement: The Government shall promptly formulate and submit to the National Assembly for consideration and approval of the Law on Land (amended), the Law on Housing (amended), the Law on Real Estate Business (amended), the Law on Bidding (amended), the Law on Auction (amended), Law on Prices (amended), Law on Credit Institutions (amended), etc together with various resolutions and guiding decree.

2. Promoting social housing: On the process for amendment law on the Law on Housing, the Government formulates and proposes to the National Assembly to promulgate the "Resolution of the National Assembly on pilot policies to promote social housing development" to highlight certain matters such as Land allocation for investment and construction of social housing projects, determine the Target for at least 01 million social housing apartments in the period 2021- 2030 and credit program of VND 120,000 billion for social housing.

3. Credit capital: The Government shall flexibly and synchronously manage the monetary policy instruments, enable businesses, home buyers and investors to quickly access credit sources and take appropriate and effective measures to reduce lending interest rates and support the real estate market.

4. Corporate Bond Capital: The Government shall direct and guide the capital mobilization (including bond issuance) of real estate enterprises on the stock market, Control the capital mobilization of real estate enterprises on the stock market to avoid speculation, and inspect and supervise the compliance with the law on issuance, investment and provision of services on corporate bonds.

5. Implementation of local government: The Government shall raise the sense of responsibility of heads, officials and public employees, promote reform of administrative procedures and accelerate approval of planning, approval of investment policies, selection of investors to implement real estate projects