VietNamNet Bridge – The Ministry of Construction has proposed
the government to take necessary measures to restrict the supply in order to
help warm up the real estate market.
Believing that the oversupply is
the main reason that has frozen the real estate market, the ministry believes
that the current situation would be improved only if the government can block
the supply.
The ministry has reportedly
suggested that the government would order real estate developers to suspend
their projects.
However, the idea by the
construction ministry has faced the strong opposition from real estate
developers, who believe that the solution is unfeasible while it would bring
severe damages to the investors.
Nguyen Quoc Hiep, President of GP
Invest, it is the real estate developers, who have the right to continue or
delay the implementation of their projects after considering their financial
capability and business development strategies.
He went on to say that it would
be unreasonable to force some investors to stop their projects by giving
administrative orders, even though they are completely capable to continue the
implementation. This may cause immeasurable bad consequences, Hiep has warned.
The construction ministry has
also suggested that real estate developers should turn their commercial
projects into the projects on developing houses for low income earners.
Explaining this, an official of
the ministry said that the developers of the projects would be able to enjoy
some preferences, while developers would have no worry about the salability of
the products, because there always exists a very high demand for low-cost
houses.
On the issue, Hiep has commented
that though this is a good choice, the State should not compel real estate
developers to follow that way. The State just can give advices or
recommendations, while it should not lay down this as a policy for enforcement.
He has noted that it would be
very difficult for enterprises to make changes in the purposes of projects
(developing commercial houses instead of low-cost houses for low income
earners), or suspending the projects, because this would make their initially
set business plans upset.
Nguyen Tuong Nhu, General
Director of Sy Ngan Joint Stock Company, the developer of a series of resort
real estate projects under the implementation, said the site clearance alone
would cost the investors hundreds of billions of dong. Therefore, if the
investors are forced to stop the projects, they would suffer heavily.
Citing the provisions stipulated
in the Real Estate Business Law, Nhu said that the State can only revoke the
licenses granted before to investors if the investors do not implement the
projects as promised or violate the current laws. Meanwhile, if they strictly
follow necessary procedures as required, the State would have no reason to
force them to stop the projects.
Meanwhile, Tran Van Can,
President of Handico 5, said enterprises would decide themselves whether to
continue with projects. If they find the projects unprofitable, or if they meet
big difficulties, they would stop the projects themselves, and no need for the
construction ministry to intervene in their business.
Can also said that housing
development projects have been following the market rules. Therefore, the
State’s intervention at this moment is unnecessary.
Doan Van Phuong, General Director
of FLC Group, has noted that a lot of enterprises have halted their project
implementation because they understand their current situation, not because of
the orders by the State.
Compiled by C. V
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