Proposing at the National Online Conference “Unlocking and promoting the safe, healthy and sustainable development of the real estate market”, Novaland Chairman Bui Thanh Nhon proposed to the National Assembly and the Government to consider supporting mechanism real estate business.
On the morning of February 17, Novaland and many real estate businesses attended a nationwide online conference to promote the healthy and sustainable development of the real estate market, chaired by Prime Minister Pham Minh Chinh. The conference took place in the context that the real estate market continues to face many difficulties, especially in terms of liquidity, cash flow, legal problems, corporate bonds, etc.
Speaking at the conference, Mr. Bui Thanh Nhon – Chairman of the Board of Directors of Novaland said that after 2 years of being affected by the Covid-19 pandemic, businesses have been eroded and the instability of the world causes inflation to increase. At the end of 2022, the Government of Vietnam issued countermeasures and immediately had a strong impact on many aspects of the economy, especially the real estate, construction…
In reference to dealing with the impact of Covid-19, the National Assembly and the Government have directed the State Bank of Vietnam to issue Circular No. 14/2021 regulating credit institutions, bank branches abroad, restructure debt repayment terms, exempt or reduce interest and fees, and maintain debt groups to support customers affected by the Covid-19 epidemic. Real estate businesses as well as the Ho Chi Minh City Real Estate Association (HoREA) proposed the National Assembly and the Government to consider directing the State Bank of Vietnam to continue supporting such businesses.
Accordingly, Novaland leaders affirmed that in this period, businesses only ask for support on mechanisms to overcome themselves. Specifically, Novaland asked the Prime Minister to urgently consider the following recommendations: Ask the Government and the State Bank to issue regulations allowing banks to relax, postpone and maintain debt groups for real estate projects 2- 3 years; Direct the legal removal of the root for projects in the whole country.
“Recommending the Prime Minister to direct the selection of Aqua City urban area in Dong Nai for the Prime Minister’s Working Group to pilot to remove difficulties and Novaland wishes to remove difficulties in 1 month. This is the key, a living project. As for Novaland at the moment, if this project is removed, it will be the focal point to remove all of Novaland’s difficulties so that businesses can complete the project and fulfill their bond and bank debt repayment obligations. .” – Mr. Nhon suggested.
According to Mr. Nhon, currently, Novaland has VND 25,000 billion frozen at commercial banks. In which, according to the credit granting conditions, more than 10,000 billion VND will be eligible for release when Novaland completes some legal procedures. If within the next 1-2 months, this problem is resolved, Novaland will have capital to operate normally.
Interest rates have increased quite rapidly since the end of last year, some loans have increased by nearly 30%. If this increase continues, the project at the old interest rate will lose money at the new interest rate.
Therefore, businesses suggested the Government, the State Bank as well as commercial banks to take measures to reduce the deposit interest rate, thereby quickly reducing lending rates and restoring the market.
Particularly for commercial banks, businesses that have been with banks for many years, now that businesses are facing difficulties due to high interest rates, commercial banks should also reduce profit margins to accompany and support. enterprise.
The amendment of Decree 65 has been drafted since the beginning of December 2022 but has not been issued so far. With the contents in the draft, if issued, it will contribute to solving many difficulties for businesses and the bond market, Mr. Bui Thanh Nhon said. Not only real estate businesses, but also commercial banks and people who are bondholders expect these amendments to be issued soon.
The head of Novaland also suggested that the Government’s media agencies have strategies to help rebuild trust in the market, following the trend of supporting “real people” businesses that are creating good products for society. society, helping the market develop in a sustainable way. The strong involvement of the Government to help remove the legal roots for projects will help reduce product costs, create a favorable investment environment to attract FDI, help urban development, increase revenue. book.
“The legal removal of the project will help reduce product costs,” said Novaland’s Chairman of the Board of Directors, emphasizing that, with the support and advice of many leading consulting partners such as EY-Parthenon, KPMG…, Novaland is drastically conducting comprehensive restructuring in order to provide appropriate financial structure solutions. Simultaneously, efforts together with partners and contractors continue to build and complete ongoing projects to hand over products to customers as well as create hundreds of thousands of jobs when the works are built and put into operation. into operation. Like other businesses in the same industry, Novaland expects the Government and agencies to speed up the progress of solving difficulties and obstacles, contributing to promoting the real estate market to develop healthier and more sustainable. .
Immediately after the proposal of the representative of Novaland, the Prime Minister asked the delegates to focus on analyzing more about the causes, especially the subjective causes, leading to the difficulties and obstacles of the current real estate market. What are the responsibilities of relevant stakeholders (such as management agencies, businesses, and banks), thereby proposing solutions and what the subjects should do in the future.
The Prime Minister reiterated the message: In order to develop real estate sustainably, localities and businesses must first create jobs. The land, the beautiful location, and the advantage must be given priority to production and business, thereby creating jobs for people, only if there are jobs, people will come to work, some people will come to work. Only when people come to live, when people come to live, there are people who buy houses; when people buy houses, they can develop real estate and urban areas.