Thursday,  Nov 15, 2018,03:12 (GMT+7) 0 0
Property firms propose lifting seven barriers
By Le Anh
Thursday,  Nov 8, 2018,13:00 (GMT+7)

Property firms propose lifting seven barriers

By Le Anh

An apartment building in HCMC – PHOTO: LE ANH

HCMC – Real estate firms have called for the HCMC government to address seven bottlenecks hindering their business activities, heard attendees of a meeting with HCMC Chairman Nguyen Thanh Phong on November 7.

At the meeting, Le Hoang Chau, chairman of the HCMC Real Estate Association, noted the seven existing obstacles impeding property enterprises’ business were procedures permitting investment plans, site clearance, collection of land use fees, the absence of regulation on using land to pay for build-transfer contracts, project transfers, credit and administrative procedures.

Nguyen Xuan Quang, chairman of Nam Long Investment Corporation, said the corporation had difficulty applying procedures permitting investment plans and accepting investors for real estate projects. Typically, the firm failed to be licensed for investment as part of the land being cleared was agricultural land.

Besides this, unreliable methods and processes of calculating fees for land use create an ask-give mechanism, causing delays and losses for enterprises and the State budget.

Speaking at the meeting, Nguyen Dinh Trung, chairman of Hung Thinh Real Estate Business Investment Corporation, remarked that the rapid growth of the population was also a hindrance to urban refurbishment projects and had lowered the feasibility of these projects.

In addition, land value appraisals remain illogical in terms of administrative procedures for the collection of land use fees, lengthening the time needed to invest, causing some firms to miss investment opportunities.

Further, procedures for the issuance of apartment ownership certificates are lengthy, jeopardizing buyers’, sellers’ and investors’ interests.

Trung proposed the HCMC government assign authorities of districts to issue the certificates and remove barriers to the issuance of land use rights certificates for foreigners.

Commenting on obstacles hindering the collection of land use fees, Le Huu Nghia, director of Le Thanh Company, proposed the municipal government set a collection time until June 2019 to completely resolve delayed payments for land use, adding funds to the budget and helping enterprises deploy projects quickly.

In response to firms’ proposals, the HCMC chairman said the city would address the difficulties being faced by real estate enterprises within the city’s capacity and would propose the relevant ministries deal with problems beyond the city’s authority.

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