Friday, March 29, 2024 8:14:24 AM - Markets open
VN-INDEX 1,290.18 +7.09/+0.55%
HNX-INDEX 243.92 +1.07/+0.44%
UPCOM-INDEX 91.48 +0.30/+0.33%
MoC proposes controlling bond issuance of property firms
Vietnamnews - 6/15/2022 4:14:42 PM
 (0 ratings. You must sign in to rate.)
The Ministry of Construction (MoC) has proposed controlling the bond issuance activities of real estate enterprises but not tightening investment in real estate bonds, Nguyễn Mạnh Khởi, deputy director of MoC's Housing and Market Management Department said at the monthly press conference held on June 13.
 
“The real estate market is closely related to the financial market. Recently, the financial market has been growing quickly and the real estate market has also seen strong development. Therefore, the ministry believes regulations are necessary for the healthy development of capital mobilised from bond issuance activities," Khởi said. 
 
The ministry has proposed amending Decision 153/2020 with the goal of managing corporate bond issuance activities to avoid the property bond market overheating.
 
Khởi said that the State Bank and the Ministry of Finance are in charge of the management and control of bond issuance activities. Meanwhile, the Ministry of Construction is to propose solutions to manage bond issuance activities of real estate enterprises.
 
“In the past, there were some real estate enterprises that issued bonds to exceed the target, causing the financial market to develop quickly. The Minister of Construction also reported this issue to the National Assembly, and proposed solutions to improve the health of the real estate market, including strictly controlling the issuance of bonds by real estate enterprises, especially individual bonds," Khởi said.
 
Like businesses in other sectors, real estate enterprises have mobilised capital to implement projects via many channels such as issuing bonds, building joint ventures to contribute capital, and borrowing credit from banks or core capital.
 
However, most domestic real estate enterprises do not have much core capital and depend on loans from banks. After the State Bank tightly controlled capital for the real estate market, businesses had to switch to issuing bonds. Therefore, to develop the domestic real estate market in a more healthy and sustainable direction, it is necessary to control and adjust capital flowing into this field.
 
“Therefore, MoC proposes prioritising capital for projects that can provide a fast supply of housing to the market. The ministry expects that capital will continue to be poured into the real estate market, but it is necessary to have regulations for more effective using of the capital," Khởi was quoted as saying by Pháp luật Tp. HCM (HCM City Law) online.
 
At the press conference, Deputy Minister of Construction Lê Quang Hùng said: "The general policy is to never restrict capital into the real estate sector, but only control and direct capital inflows in feasible projects to promote the efficiency of the capital and meet practical housing needs of people."
 
For property tax, a MoC representative said that the Ministry of Finance has just proposed collecting this tax. MoC would study this issue and provide recommendations with the goal of controlling housing prices. That will help the market become more healthy and sustainable. 
 
“However, imposing tax on real estate assets is a huge issue relating to many fields, especially with a direct impact on people who own real estate. Therefore, it needs to be studied carefully," Hùng said.
 
The MoC representative also said that the proposal on imposing tax on property has not yet been officially studied. The National Assembly's law- and ordinance-making programmes have not yet focused on this proposal.
 
MoC also reported at present, housing prices have shown signs of cooling down, but are still at a high level compared to the same period in 2021 and the end of 2021.
 
The Department of Housing and Real Estate Market Management believes that the real estate market in 2021 witnessed unusual development. 
 
Housing prices in many places increased rapidly, especially land plots in suburban districts that are developed to be urban districts, or projects with information about planning. In some areas, the price increased by 15 per cent for apartment buildings and 30 per cent for individual houses.
 
The high price increase in the real estate market was due to the limited supply of houses, the source of credit in the real estate sector, and lack of market information. Therefore, the ministry has requested localities to manage the market, especially disclosing information about planning in a timely manner. VNS
 
Read original article here
 
Newer News
28/03 Deposit interest rates to remain low until mid-2024: analysts
20/03 Central bank required to take urgent measures to stabilise gold market
20/03 Banks given advantages to CASA ratio
18/03 Việt Nam to revise gold market regulations: amendments to Decree 24/2012/NĐ-CP underway
18/03 Man owes bank nearly VNĐ9 billion in credit card's interest after 11 years
15/03 PM urges further rate cuts, improved credit access to remove obstacles, promote growth
14/03 Insurance premium revenue rebounds in the first two months
14/03 Foreign exchange rate cools after central bank’s intervention
14/03 Lukewarm reception for VNĐ120 trillion credit package
14/03 Banks remain reluctant in disclosing interest rates
Older News
13/06 Big M&A deals forecast in banking industry in 2022
13/06 US Treasury Department recognises Vietnam’s progress in addressing currency-related concerns
10/06 Banks’ asset quality to remain safe thanks to large reserve buffers
10/06 Reference exchange rate up 3 VND on June 10
06/06 Reference exchange rate down 7 VND at week’s beginning
30/05 Banks told to rollout low-interest businesses loans
20/05 Vietnamese banks expected to get better credit ratings
18/05 Reference exchange rate down 20 VND
16/05 Reference exchange rate down 3 VND at week’s beginning
11/05 Reference exchange rate down 2 VND
 
Newsletter Signup
Top Stories
Shares sustain gains on strong investor confidence
Banks given advantages to CASA ratio
Man owes bank nearly VNĐ9 billion in credit card's interest after 11 years
VN-Index corrects, liquidity stays high
Stock Market Upgrade Journey: overcoming hurdles and reaching new heights
Market Update
Last updated at 3:05:00 PM
VN-INDEX 1,290.18 +7.09/+0.55%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.