HCM City’s housing industry faces difficulties

The property industry in Ho Chi Minh City, and in fact the country in general, faces several problems that need urgent solutions, especially with regard to legal provisions.

HCM City’s housing industry faces difficulties hinh anh 1

A housing project in Ho Chi Minh City (Photo: VNA)

Nguyen Thi Thanh Huong, general director of Dai Phuc Land, said it took her company 15 years to complete procedures for one of its projects.

The long delays often meant by the time a project was underway the design became outdated, she said.

But if the company made adjustments to meet market requirements, it would have to apply from the beginning again, she lamented.

Tran Quoc Dung, Deputy General Director of Hung Thinh Group, said it took at least one year for a project to complete basic procedures and begin sales, but in most cases it was more like four or five years.

The final step of issuing red books – the title deeds -- to buyers also faced difficulties, he said.

Le Hoang Chau, Chairman of the HCM City Real Estate Association, said there had been a remarkable decline in the supply of new housing projects in HCM City in recent years.

It was down 20 percent in 2018 and 70 percent last year. In 2019 only one project managed to complete legal procedures and begin sales.

Conflict and overlapping legal provisions were mainly to blame for the decline, Chau said.

 

"The current licensing process involves four steps, which take a lot of time," he added.

Nguyen Trong Ninh, director of the Ministry of Construction’s housing and real estate market management department, admitted these regulations were not consistent because they were found in multiple laws.

He said HCM City should therefore draft solutions for the difficulties faced by developers, and his ministry and others would give their opinions on them.

Asked about the procedures for issuing land use right certificates, he said in general people must be granted the certificate immediately after the deal is completed.

The Ministry of Natural Resources and Environment is responsible for the issuance of red books and handles them based on each case, according to Ninh.

The Law on Investment prescribes the procedures for adjusting a project and which ones are handled by the Department of Planning and Investment and which ones by others.

The law also stipulates that the Department of Construction is the authorised agency to handle issues related to construction procedures and apartment planning and adjustment.

He admitted that supply had decreased this year due to not just to the COVID-19 pandemic but also to the overlapping and inconsistent laws.

The Government had this year provided many solutions to help revive the market and resolve the difficulties faced by the industry, he added./.VNS

 
 

Other News

.
Welcoming the 'upgraded' CAEXPO
Welcoming the 'upgraded' CAEXPO
BUSINESSicon  07/09/2021 

The 18th China-ASEAN Expo (CAEXPO) will kick off in Nanning, China as scheduled, and here comes the "CAEXPO Moment" again.

Vietnam's steel sales increase due to exports
Vietnam's steel sales increase due to exports
BUSINESSicon  06/09/2021 

Steel enterprises have boosted exports while facing difficulties in domestic consumption due to the COVID-19 outbreak, according to the Vietnam Steel Association (VSA).

E-commerce platforms resume delivery in HCM City as ban is lifted in red zones
E-commerce platforms resume delivery in HCM City as ban is lifted in red zones
BUSINESSicon  06/09/2021 

E-commerce platforms have resumed deliveries in HCM City and some of the city’s extremely high risk areas (red zones) since August 30, a week after they were banned.

Mooncake makers face unprecedented difficulties
Mooncake makers face unprecedented difficulties
BUSINESSicon  06/09/2021 

Online sales are being implemented by mooncake businesses with a variety of products from the common to the high-end.

Vietnam manufacturing output declines on Covid-19 outbreak
Vietnam manufacturing output declines on Covid-19 outbreak
BUSINESSicon  05/09/2021 

Vietnam’s manufacturers are facing an uphill task to keep operation amid restriction measures.

VIETNAM BUSINESS NEWS SEPTEMBER 5
VIETNAM BUSINESS NEWS SEPTEMBER 5
BUSINESSicon  05/09/2021 

Ports see increase in goods handling despite COVID-19

Finance Ministry urges stricter control over risky corporate bonds in Vietnam
Finance Ministry urges stricter control over risky corporate bonds in Vietnam
BUSINESSicon  05/09/2021 

The Ministry of Finance (MoF) has tightened control over risky corporate bond issuance.

More sci-tech content in upcoming China-ASEAN Expo
More sci-tech content in upcoming China-ASEAN Expo
BUSINESSicon  06/09/2021 

The whole universe hidden in the VR glasses, magnificent images shown on transparent screens, unmanned aircraft applied in seeding and fertilization..., sci-tech exhibition has become the new hot spot in the China-ASEAN Expo (CAEXPO) in recent years.

VIETNAM BUSINESS NEWS SEPTEMBER 4
VIETNAM BUSINESS NEWS SEPTEMBER 4
BUSINESSicon  04/09/2021 

Vietnam scores high in employee experience

Foreign investors keen on education
Foreign investors keen on education
BUSINESSicon  04/09/2021 

Overseas funds continue to cash in on Vietnam’s education sector with a view to diversify investment portfolios.

Rice exporters feel strain of restrictions
Rice exporters feel strain of restrictions
BUSINESSicon  04/09/2021 

The disruption of the production chain in the past few months is pushing rice exporting and processing companies into an increasingly difficult situation.

Garment and textile groups bemoan curbs
Garment and textile groups bemoan curbs
BUSINESSicon  04/09/2021 

With the autumn-winter season coming up, Vietnam’s garment and textile industry could cash in on the increased demand for clothing. 

CAEXPO embraces RCEP opportunities
CAEXPO embraces RCEP opportunities
BUSINESSicon  04/09/2021 

Cooperation is deepened to improve substantial economic and trade results.

E-commerce platform imports billions of US dollars of Chinese goods
E-commerce platform imports billions of US dollars of Chinese goods
BUSINESSicon  04/09/2021 

The Vietnamese Ministry of Finance believes that it is necessary to have regulations to control exports and imports transacted through e-commerce platforms.

Experts propose solutions to supply chain disruptions caused by COVID-19
Experts propose solutions to supply chain disruptions caused by COVID-19
BUSINESSicon  03/09/2021 

A group of experts of the Hanoi-based National Economics University have put forward several immediate solutions to remove bottlenecks and connect disrupted supply chains that have impacted localities hit by COVID-19.

Agriculture Ministry to open new path for farm produce sales
Agriculture Ministry to open new path for farm produce sales
FEATUREicon  04/09/2021 

“We have to figure out a new ‘farm produce path’ that allows us to connect fields and markets,” said Minister of Agriculture and Rural Development Le Minh Hoan.

VIETNAM BUSINESS NEWS SEPTEMBER 3
VIETNAM BUSINESS NEWS SEPTEMBER 3
BUSINESSicon  03/09/2021 

Bubbles heap pain on vital manufacturers

Five-year restructuring plan aims to improve national economic competitiveness
Five-year restructuring plan aims to improve national economic competitiveness
BUSINESSicon  04/09/2021 

The Ministry of Planning and Investment has said that it is coordinating with relevant ministries, agencies and localities to build a national economic restructuring plan for the 2021-2025 period, 

On-line CAEXPO: Exploiting potential of Internet for new growth
On-line CAEXPO: Exploiting potential of Internet for new growth
BUSINESSicon  03/09/2021 

On the platform of on-line China-ASEAN Expo (CAEXPO), ASEAN Pavilion, China Pavilion, and other virtual pavilions can be found on the homepage.

Europe recovers, opening up great opportunity for Vietnamese goods
Europe recovers, opening up great opportunity for Vietnamese goods
FEATUREicon  06/09/2021 

According to Vietnam’s Trade Counselor in Germany Bui Vuong Anh, two-way trade between Vietnam and Germany reached $16 billion in 2019 and $15.2 billion in 2020.

 
 
 
Leave your comment on an article

OR QUICK LOGIN