Vietnam moc and sbv suggest measures to control capital efficiency in property sector

The Ministry of Construction (MOC) and the State Bank of Vietnam (SBV) proposed several suggestions to control the capital efficiency in the real estate market, the local online newspaper VnEconomy.vn reported.

Specifically, MOC and the central bank recommended:

(1) Strictly following the Government’s requirements, reducing the growth and proportion of property loans according to a reasonable roadmap to avoid shocks to the market.

(2) Strengthening management practices, closely monitoring the domestic property market, using land resources economically, etc.

MOC and the SBV also suggested: promoting key social housing programs to ensure social security; resolving problems related to land valuation, taxes on personal income from real estate business; strengthening inspection, timely handling violations in real estate investments, etc.

MOC and the central bank also analyzed and evaluated the conditions of the real estate market in 2011, warning that liquidity shortage may occur at some credit institutions that funded infeasible property projects and invested in low-liquidity real estate segments.

MOC remarked that in the coming time, if tight credit policy is maintained and outstanding credit to real estate sector keep on declining in absolute number as it is now, the real estate market will freeze, adversely affecting the whole economy.

Source Sophie/ StoxPlus

Tags: Vietnam Property market, Vietnam property sector, vietnam real estate market

Posted by VBN on Dec 29 2011. Filed under Banking-Finance, Infrastructure, Real Estate. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry