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Prime Minister directive gives boost to real estate
Prime Minister Nguyen Tan Dung has changed the name of the leading national housing agency to the National Steering Committee for Housing Policies and Real Estate Market.
A prime ministerial decision issued last week gives the committee additional functions, duties and powers, including the implementation of the Law on Real Estate Business and the establishment of policies to develop this sector.
Two deputy ministers from the ministries of Agriculture and Rural Development and Home Affairs and the vice-chairmen of the Hanoi and HCM City People’s Committees have been appointed to the committee.
The governmental relevant agencies are developing a proposal for real estate development to provide orientation for the market which is expected to be finalized in January next year.
The Prime Minister has ordered the State Bank to ask banks to review each project, and continue lending to unfinished real estate projects in order to hasten their completion.
Currently, like many other sectors, the real estate market is facing many difficulties. If this situation prolongs, the market will fall into a situation where there is not enough supply, which is also a risk for the market, say industry insiders.
More importantly, the market is now attracting a very large amount of capital.
More than 50 percent of the total US$57 billion in foreign direct investment that followed into the country in the first nine months of the year was in the industry and construction sectors.
These projects, when implemented in the coming time, will mobilize many billion dollars more, accompanied by changes in land, society and urbanization, they add.
Around 1,500 housing projects and urban areas are being built across the country. Vietnam is striving to build 35 million sq.m of housing each year to achieve a per capita space of 20sq.m in urban areas by 2020.
The Prime Minister said that in the next few years, real estate market would be the driving force for growth of the economy.
Developing the real estate market should also aim at solving housing problems especially for low-income people, he said.
Mr. Dung noted that real estate development would promote the development of other economic sectors such as building materials, cement, steel, industrial electrical equipment and wood processing, and creates job for many workers.
VOV
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