REPORT NO. 150/BC-BXD TO THE PRIME MINISTER

On August 3, 2023, the Ministry of Construction issued Report No. 150/BC-BXD sent to the Prime Minister to report on several issues regarding the implementation of Resolution No. 33/NQ-CP on certain measures to remove obstacles and promote the development of a safe, healthy, and sustainable real estate market. The report presented the following important contents as below:

1. Review of Real Estate Market

The Ministry of Construction presents data and evaluations on (i) real estate supply, (ii) real estate transactions, (iii) real estate transaction prices, and (iv) capital sources for the real estate market. The data is collected in the second quarter of 2023. According to the report, the most notable aspect of this issue is that the prices of newly-built condominiums in Hanoi and Ho Chi Minh City continue to rise despite the market slowdown.

2. The competent authorities have been gradually solving difficulties for the projects of enterprises in various localities.

The Ministry of Construction has stated that they have worked directly with several localities (including Hanoi, Ho Chi Minh City, Hai Phong, Da Nang, Can Tho, Dong Nai, Binh Thuan) to review and address difficulties and obstacles. As of August 1, 2023, the working group has received 112 reports on difficulties, obstacles, and recommendations from localities, enterprises, associations, and citizens related to 174 real estate projects. The Ministry of Construction has made efforts to resolve the difficulties in each locality, specifically:

- In Ho Chi Minh City, the working group has worked to address and provide guidance on about 30 issues and recommendations related to difficulties and obstacles of 180 housing and urban development projects. After the working group and the Ministry of Construction exchanged information, the difficulties and obstacles have been clarified and fundamentally resolved.

Additionally, the working group has received 37 letters of recommendation from businesses and citizens. These 37 letters have been sent to the People's Committee of Ho Chi Minh City and the Ministry of Planning and Investment to request solutions and overcome difficulties for real estate projects. Currently, the People's Committee of Ho Chi Minh City is actively implementing measures to resolve difficulties and obstacles for these projects.

According to information from the Department of Construction, as of the current time, Ho Chi Minh City has successfully directed and resolved 67 projects.

- In Hanoi, around 20 issues and recommendations concerning approximately 712 housing and urban development projects have been resolved. The Ministry of Construction believes that the main obstacles stem from the local understanding and application of laws that are not yet comprehensive and accurate. The working group has received 12 letters from 12 businesses and citizens requesting the resolution of difficulties for projects within the city. As a result, 419 projects have been addressed, and the working group continues to guide the resolution process for the remaining 293 projects.

- In Hai Phong, Da Nang and Can Tho, the working group has worked and resolved recommednations related to housing and urban development projects. According to the Report, the Ministry of Construction stated that the People’s Commitee of these provinces are actively implementing the removal of difficulties and obstacles for the projects in accordance with the guidance of the relevant ministries and agencies.

- In Dong Nai province, the working group has directly worked with 7 major real estate projects, including projects from Novaland and Hung Thinh, to identify issues related to urban planning and construction under the jurisdiction of the provincial People's Committee. Currently, the People's Committee of Dong Nai province is actively implementing tasks related to adjusting the general planning of Bien Hoa City and arranging non-residential land use areas (NOXH) in projects as directed by Deputy Prime Minister Tran Hong Ha.

Furthermore, the working group has received 6 letters from 3 enterprises, 1 individual, and 2 letters from the Dong Nai provincial People’s Committee, requesting the resolution of difficulties for the projects of these enterprises within the province.

The working group has already prepared 6 letters requesting the resolution of difficulties for the real estate projects within its jurisdiction and has reported the results of the resolution to the working group.

- In Binh Thuan, the working group has received a letter of recommendation to address difficulties for the Novaworld Phan Thiet project by Novaland Group, related to land price approval, land use fee calculation, and issuance of land use rights certificate for the project. On July 21, 2023, the working group organized a working session at the Ministry of Construction with the Binh Thuan provincial People's Committee and the project's investor, Novaland, to listen to the difficulties and challenges, exchange ideas, and provide guidance on resolving the issues for the local authority and the enterprise.

Additionally, the working group has received 4 letters from 2 enterprises, individuals, and the Binh Thuan provincial People's Committee, requesting the resolution of difficulties for the projects of these enterprises within the province. The working group has prepared 3 letters requesting the resolution of difficulties for the projects within its jurisdiction and has reported the results of the resolution to the working group.

3. Other issues

Implementing the Resolution 33 of the Government and reporting on the resolution of difficulties for real estate projects, the Ministry of Construction also stated that they have addressed institutional, credit source, and corporate bond-related obstacles to promote the safe, healthy, and sustainable development of the real estate market. Moreover, they have proposed tasks and solutions to be assigned to relevant ministries, departments, and central-affiliated city People's Committees for implementation in the near future.

See the document here: https://drive.google.com/file/d/1QV-0G2pVCmSEic3ComDOIZw-VuuLue9Y/view?usp=sharing

----------

For more information, please contact:

Hoang Pham (James) / Managing Partner at: hoang.pham@vselawyers.com

© 2023 VSE LAWYERS LIMITED LIABILITY LAW COMPANY – All rights reserved.

Attention: This legal update is not an advice and should not be treated as such.