September 20, 2020 13:57

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Real estate enterprises: Favorable procedures for investment licensing are more valuable than gold

18:32 | 09/06/2020

VCN - At a conference on the development of real estate in 2010-2020 and upcoming trends on June 6, commenting on trends of the real estate market, representatives from enterprises and real estate associations all expressed their optimistic attitude and believed in the recovery momentum from the end of this year. Enterprises also proposed to continue administrative procedure reforms in this area.

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real estate enterprises favorable procedures for investment licensing are more valuable than gold
The conference

Highlight from industrial real estate

Mr. Nguyen Manh Ha, Vice Chairman of the Vietnam Real Estate Association, said the current movement of the real estate market is different from 2010. "Previously, we had a surplus crisis, now we are facing a deficit.  The legal basis to put projects into business and investment is insignificant," said Nguyen Manh Ha.

He also said that Covid-19 changed the perception, consciousness and behavior of customers in the real estate market. Accordingly, people who are good with money still use money to buy a house, not for a deposit like before. In a short time, real estate is an essential demand, but it still needs to consider the future demand with higher standard housing than now, especially smart housing products.

Besides, the trend of industrial real estate development will be a highlight of the market in the next few years. In that trend, enterprises and traders must play a leading role in the market, not depend on the market.

"I hope that in the near future, large enterprises and investors must lead the market to surmount difficulties. I am optimistic about the market’s development," said Nguyen Manh Ha.

Regarding industrial real estate, Ms. Ha Thu Thanh, a representative of Deloitte Group, affirmed that the real estate trend in the near future is very optimistic. In particular, along with segments such as housing, offices, industrial real estate will be "a highlight" because of the trend of production shifting, supply chain restructuring and "China +1" strategy.

However, she is still concerned about the foundation for industrial real estate development.

"Previously, if real estate investment was aimed at incentives, taxes and land price reduction, then today, real estate needs adequate infrastructure connectivity, including logistics, labor productivity and supporting industries. Currently, how many parts does Vietnam have?" Ms. Thanh asked.

Commenting on the real estate market in the near future, Mr. Nguyen Canh Hong, General Director of Eurowindow Company, believes that it’s always darkest before dawn.

Accordingly, the US-China trade waror Covid-19 has potential opportunities and challenges. Vietnam is welcoming the trend of production shifting from China, creating an investment wave in industrial real estate. Thereby, the market will have a natural selection, eliminating weak real estate enterprises.

"In the near future, I think that policies for the real estate market will be gradually improved, this is a favorable condition for real estate enterprises to expand their development," said Mr. Nguyen Canh Hong.

100% of enterprises expect administrative procedure reform

According to Dr. Vo Tri Thanh, former Deputy Director of the Central Institute for Economic Management (CIEM), during the period of 2009-2010, the real estate market was more difficult, facing the scarcity of money, increasing liquidity and bad debt, near collapse of the banking system and had almost no transactions. But from 2014, the real estate market has grown gradually. So there's no reason the market won't surpass Covid-19.

Commenting on the future of the real estateindustry, Chairman of FLC Group Trinh Van Quyetsaid that he is always optimistic about the real estate market and affirmed that this is a golden time for people from little accumulation to large investment to buy real estate.

"So far, despite many crises, I am still optimistic and overcome the crises of 2008 and 2013 with positive results,"said Quyet.

Talking about the trend of industrial real estate, Mr. Trinh Van Quyet has a different perspective.

"Many people say that industrial real estate is a shifting trend of foreign investors to Vietnam. But all people race to invest in industrial real estate, it is very dangerous. Industrial real estate is to have housing for employees and to have industrial zones. I am not too optimistic about industrial real estate,"said Quyet.

On the other hand, Mr. Nguyen Tuan Hai, President of Alphanam Group, said that demand for housing is still increasing along with the country's growth, while the legal framework cannot catch up to meet it.

"The real estate market in the near future can be summed up in the sentence ‘the risk of one person is the opportunity of the other’. The complex mechanism may be an opportunity for large and potential units. In addition, although the mechanism is challenging, it can also lead to the formation of group interests in a natural way, companies shall join themselves to develop, and there isonly a few dozen professional real estate developers," said Hai.

Mr. Do Anh Dung, President Tan Hoang Minh said that he appreciated banks reducingloan interest rates for enterprises but should prioritize other industries instead of real estate. According to him, for real estate enterprises, favorable procedures for investment licensing are more valuable than gold.

More specifically, Mr. Nguyen Canh Hong, General Director of Eurowindow Company, shared a survey of issues that real estate enterprises are interested in. Accordingly, 100% of surveyed enterprises thought that administrative procedures were the top issue. In addition, the policies and laws are not consistent, 81% of enterprisessaid that it was inadequate.

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Besides, there are some problems such as land access and site transformation; the number of approved projects was very few, natural disasters and weather affected real estate and finally, there were financial difficulties.

Over the past ten years, real estate has changed rapidly and significantly improved the people’s lives. There is no denying that this has become a locomotive for the development of Vietnam's economy. But in this decade, real estate has also been under a lot of pressure, facing difficulties in legal and market, between business and society. Dr. Vo Tri Thanh, former Deputy Director of Research Institute and Central Economic Management (CIEM).

 

 

Hoai Anh/ Huyen Trang