VNREA President: The real estate market is entering a quite period

Phúc Nguyễn
Phúc Nguyễn pvhongvu@gmail.com
Thứ Ba, 30/07/2019 - 11:30

At the 3rd Executive Committee Meeting of the Vietnam National Real Estate Association (VNREA), Mr. Nguyen Tran Nam reaffirmed that Vietnam’s real estate market is in a quiet and less favourable context.

The 3rd VNREA Executive Committee Meeting for the 4th term (2016 - 2021) was held in the capital city of Hanoi on July 27, chaired by President Nguyen Tran Nam with nearly 60 delegate participated.

This is a mid-term conference to comprehensively evaluate activities of the association, according to the previous meetings’ resolutions, creating a basis to assess past activities and forecast the second half of 2019.

Mr. Nguyen Tran Nam speaking at the 3rd Executive Committee Meeting for the 4th term of VNREA.

Mr. Nguyen Tran Nam speaking at the 3rd Executive Committee Meeting for the 4th term of VNREA.

Speaking at the meeting, Mr. Nguyen Tran Nam emphasized that Vietnam’s real estate market is currently unfavourable and somewhat quiet.

“This has been predicted since the end of 2018. Land planning and legal procedures are tightened. These are two important domestic principles affecting the market. In addition, the US-China trade war and the Middle East hotspots are factors that heavily influence economic growth. In the first 6 months, market result remains positive but in comparison with the same period in 2018, there is a decrease. In general, the market is facing certain challenges and difficulties.”

However, per Nam, the current market situation is different from the 2010 crisis. At that time, the crisis was due to excess goods with no buyers, while money kept being poured into real estate.

“Now, purchasing power is great. There are still many spotlights in the real estate market. Firstly, tourism property grows steadily. Secondly, industrial estate also has numerous positive signs,” Nam said.

In the face of market movements, VNREA President said that the association has had dynamic and bold actions such as aggressively recommending, debating policies and legal documents related to the operation of Vietnam’s real estate market.

The counter-arguments and opinions of the association were straightforwardly given and thus had received attention and acceptance from the Government. Through fact-finding and investigating, VNREA has enhanced its role in protecting the legitimate rights and interests of its members.

“The voice of the Vietnam National Real Estate Association is increasingly valued but only to a certain degree and not yet decisive. We must persist to the end,” Nam asserted.

Moreover, according to President Nguyen Tran Nam, the view of the authorities at many levels and the media for real estate businesses and entrepreneurs has also changed. The contribution of property firms has been recognized.

Following Nam, at the conference, Chairman and CEO of GP Invest Mr. Nguyen Quoc Hiep said that businesses like GP Invest are encountering difficulties in policy changes, especially laws and legal corridors. What businesses want to propose to the Government and the National Assembly is to amend the law and not to affect the change of other policies.

“Law enforcement agencies have changed their procedures and concepts. We used to encounter projects that finished administrative procedures be considered undone due to the modification in Land Law 2014. In my opinion, this is the first thing that the Vietnam real estate association needs to make recommendation, legal-wise.”

Mr. Nguyen Quoc Hiep, Chairman and CEO of GP Invest.

Mr. Nguyen Quoc Hiep, Chairman and CEO of GP Invest.

Hiep also wished that the VNREA, in addition to critizing policies, will continue to promote and protect members to do the right thing, while criticizing members for wrong-doing.

“In the context of current complicated market, in the first 6 months, Hanoi only approved 6 projects, proving great difficulty. Therefore, the Vietnam real estate association is expected to continue making recommendations to reduce the complexity of administrative procedures. These procedures are now awfully tangled, stressing businesses,” Hiep expressed.

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