Voters in Thanh Hoa requested the Ministry of Construction to issue a document guiding the appraisal of conditions for assigning investors to social housing projects; methods for determining the financial safety ratios of enterprises; the basis for calculating total outstanding loans at credit institutions, outstanding corporate bonds and equity must be available according to regulations for each enterprise project approved by competent state agencies to be the investor in the financial report according to regulations in Resolution No. 201/2025/QH15 on a number of specific mechanisms and policies for social housing development, Decree No. 192/2025/ND-CP dated July 1, 2025 of the Government detailing a number of articles and measures to implement Resolution No. 201/2025/QH15 on a number of specific mechanisms and policies for social housing development and a number of detailed regulations of the Government's Resolution No. 2024/ND-CP dated July 24, 2024.
After studying, the Ministry of Construction responded as follows:
Regarding the provisions in Clause 1, Article 5 of Decree No. 96/2024/ND-CP dated July 24, 2024 of the Government, it is stipulated in detail a number of articles of the Law on Real Estate Business:
Point b, Clause 2, Article 9 of the 2023 Law on Real Estate Business stipulates that when doing real estate business, enterprises must meet the conditions to ensure the ratio of outstanding credit and outstanding corporate bonds to equity.
Clause 1, Article 5 of Decree No. 96/2024/ND-CP dated July 24, 2024 of the Government stipulates: Real estate business enterprises shall base on their equity capital, investment and business plans to decide on borrowing from credit institutions, issuing corporate bonds as well as the ratio of outstanding credit and outstanding corporate bonds on the equity of the enterprise to ensure:
Comply with the financial safety ratios of enterprises; comply with the provisions of the law on credit and the law on corporate bonds.
In case a real estate business enterprise borrows from a credit institution or issues corporate bonds to implement a real estate project that has been approved by a competent state agency as an investor, it must ensure that the total outstanding loan balance at a credit institution, outstanding corporate bonds and equity must be available according to regulations for each project not exceeding 100% of the total investment capital of that project.
The total ratio of outstanding loans at credit institutions and outstanding corporate bonds to implement projects shall not exceed 04 times the equity of the enterprise for each real estate project with a land use scale of less than 20 hectares and not exceeding 5.67 times the equity of the enterprise for each real estate project with a land use scale of 20 hectares or more.
Based on the above provisions, when doing real estate business, enterprises must prove that they meet the conditions according to the above legal regulations.
In case a real estate business enterprise implements a real estate project that has been approved by a competent state agency as the investor if it borrows capital from a credit institution or issues corporate bonds to implement that project, it must ensure that the total outstanding loan balance at a credit institution, outstanding corporate bonds and equity must not exceed 100% of the total investment capital of that project according to regulations.
When reviewing the conditions for organizations when doing real estate business, the state management agency on real estate business shall base on and compare the above legal provisions for implementation.
In case a real estate business enterprise invests in a real estate project invested by it as the investor, if it borrows capital from a credit institution or issues corporate bonds to implement that project, it must ensure that the total ratio of outstanding loans to a credit institution and outstanding loans to corporate bonds to implement that project complies with the conditions prescribed by law.
When reviewing the conditions for organizations when doing real estate business, the state management agency on real estate business shall base on and compare the above legal provisions for implementation.
At Point a, Clause 4, Article 81 of the 2023 Law on Real Estate Business and Point a, Clause 4, Article 39 of Decree No. 96/2024/ND-CP dated July 24, 2024 of the Government stipulate that People's Committees of provinces and centrally run cities are responsible for:
Perform the function of state management of real estate business within the scope of the locality; organize and direct the implementation of the provisions of the Law on Real Estate Business and Decree No. 96/2024/ND-CP dated July 24, 2024 of the local Government.
