The property industry in Ho Chi Minh City, and in fact Vietnam in general, faces several problems that need urgent solutions, especially with regard to legal provisions.
Dai Phuc Land director-general Nguyen Thi Thanh Huong said it took her company 15 years to complete procedures for one of its projects.
The long delays often meant that by the time a project was underway the design became outdated, she said.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.
Hung Thinh Group deputy director-general Tran Quoc Dung said it takes at least one year for a project to complete the basic procedures and begin sales, but in most cases takes more like four or five years.
The final step of issuing red books – the title deeds – to buyers also proves difficult, he said.
Ho Chi Minh City Real Estate Association chairman Le Hoang Chau said there has been a remarkable decline in the supply of new housing projects in the city in recent years.
It dropped 20 per cent in 2018 from 2017 and the further sank 70 per cent last year, he said. Only one project managed to complete the legal procedures and begin sales last year.
He cited conflict and overlapping legal provisions as the main reasons for the decline.
“The current licensing process involves four steps, which take a lot of time,” said Chau.
Nguyen Trong Ninh, director of the Ministry of Construction’s Housing and Real Estate Market Management Agency, admitted that the regulations were not consistent across the multiple laws where they are found.
He said Ho Chi Minh City should therefore draft solutions for the difficulties faced by developers, and his ministry and others would give their opinions on them.
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.
VIET NAM NEWS/ASIA NEWS NETWORK