Topic: Ministry of Construction

Inspections to focus on housing development plans and land allocations.

To ensure Vietnam’s corporate bond market develops stably and sustainably, the Ministry of Finance and the Ministry of Construction will work together to strengthen supervision over issuance activities and limit real estate enterprises issuing bonds with high interest rates. The Ministry of Construction also suggested supplementing regulations on the financial safety ratio of real estate enterprises after granting construction and investment permits for real estate projects.

The Minister of Construction has just promulgated a Plan to identify key objectives, tasks and solutions to form an effective structure of the construction industry. Accordingly, by 2025, the national average housing area will reach 27 meter square of floor per person; maintaining the rate of 100 per cent covering the urban general planning; urbanization rate reaches at least 45 per cent.

The Ministry of Construction has sent a document to People’s Committees of cities and provinces around the country on promoting sustainable smart urban development. It must be closely linked with digital transformation and planning, and proceed step-by-step and not develop too quickly, with pilots conducted initially to ensure short-term and long-term investment efficiency.

According to the Institute of Construction Economics at the Ministry of Construction, supply in all real estate segments was depleted in the first half of this year and prices continued to rise sharply for land plots, apartments, and villas.

International organizations believe Vietnam remains a bright spot in terms of FDI attraction into real estate, which will continue to improve as the country moves towards the post-pandemic “new normal”. According to the Ministry of Construction, real estate ranked second in attracting FDI in the first half of 2022, with more than $3.15 billion, or 22.5 per cent of the total.

The Ministry of Construction has commented on planning to expand the Yen My II Industrial Park in northern Hung Yen province on an area of more than 313 ha. The master plan must ensure land is available for the development of housing, service facilities, and public utilities for employees working at the IP.

Real estate recovered to some degree in the first half of the year, the Ministry of Construction (MoC) has reported, but instabilities remain.