According to statistics of the Vietnam Chamber of Commerce and Industry (VCCI), developing real estate projects is governed by up to 9 laws and 20 administrative procedures. This process needs a lot of time and cost to be completed.
At a conference to collect opinions and ideas to remove difficulties for real estate businesses held on Sept 25 in Ho Chi Minh City, Dau Anh Tuan, Head of Legal Department at VCCI said: " The more I read about the process of developing real estate projects, the more complex and confusing it is. The regulations, decrees, circulars are so much different from each other.”
Tuan said the conflict between laws has become more and more severe. Real estate developers cannot develop projects, while people don’t have enough homes to buy, and home prices keep increasing due to supply shortage.
Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association, said the real estate market in Ho Chi Minh City is facing many difficulties, not from businesses or consumers, but the complicated mechanism and policies. There are projects that were stopped due to overlapping laws. Across the city, there are 170 projects that have been approved for investment policy but cannot be implemented due to legal problems.
“To develop a project, developers normally spend 5 years for ground clearance, 3 years for investment preparation, and 2 years for construction. They may have no turnover for about 10 years and bear great financial pressure, ”Mr. Chau said.
In order to resolve the conflicts reflected by enterprises, Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, proposed a solution that should be taken immediately: reviewing legal conflicts to determine which regulations are effective, then developing a document in the form of guidelines for resolving existing legal conflicts.
The Government needs to formulate a supplementary decree as soon as possible and submit it to the National Assembly Standing Committee for approval. This decree should focus on unifying regulations on the order and procedures for implementing an investment project.