HANOI: Despite being affected by general difficulties, the growth rate achieved by Vietnam’s construction industry was about 8% to 8.5% last year, contributing to the economy’s overall growth rate and surpassing the 6% to 6.5% target set by the government.
Timely control of the real estate market is one of the recognised successes in the management of the Construction Ministry.
The Construction Ministry has comprehensively assessed the shortcomings and proposed solutions to ensure the real estate market’s safe, healthy and sustainable development.
Construction Minister Nguyen Thanh Nghi has worked with several local authorities, such as Hanoi, Ho Chi Minh City, Da Nang, Can Tho, Hai Phong and real estate businesses, to review, encourage and guide them to overcome difficulties and obstacles in project implementation.
Along with regular monitoring of market developments, the Construction Ministry proactively informs, forecasts and promptly takes measures to respond to abnormal market fluctuations, and promptly handles “hot” issues.
It has reported to the Prime Minister and the standing committee of the National Assembly’s Economic Committee on the impact of the unusually high land use rights auction winning results on the real estate market, proposed several solutions related to the amendment of policies and laws on auction, and strengthened the management, inspection and handling of violations in the auction of land in the local governments.
In addition, the ministry coordinated with the State Bank of Vietnam to assess the situation and evolution of capital flows into the real estate market and propose various solutions.
The real estate market has shown signs of recovery and development, with the total number of transactions of apartments, individual houses and land plots higher than the year before.
The product absorption rate in most segments is high, and the rate of office vacancy and commercial space for rent has gradually decreased.
The market has been rebalanced between investment and business activities, as well as buying and selling for personal use.
However, the market still faces a supply shortage in all product segments, an unbalanced structure of goods, a severe lack of affordable social and commercial housing, and high transaction prices.
Real estate supply is limited in all segments. Transaction prices in many segments remained at a high level at the end of the second quarter of last year, whihc in turn affecting the liquidity and trading volume of the market, especially that of the secondary market.
To “take the reins” of the real estate market, Minister Nghi requested a review of procedures in a move to reform and open up investment activities while still ensuring compliance with legal regulations.
The minister asked for a continued study and the development of mechanisms on policies and solutions to attract foreign investment into the real estate market in the coming months.
He said the supply-demand mismatch of real estate products must be overcome and that the development of products should meet the needs of society, such as social and commercial housing, at reasonable prices.
“Regular updates on information systems and databases on the housing and real estate markets are necessary,” the minister said.
He urged the sector to adjust and promptly remove difficulties caused by limitations and shortcomings in the mechanisms, policies and laws, and cautioned on natural disasters and the impacts of Covid-19 on the real estate market in order to ensure “a stable and healthy development of the overall market”.
“These support ystemss will help the construction industry complete this year’s tasks and proactively identify new challenges to maintain a sustainable growth rate,” said Nghi. — Viet Nam News/ANN
