Saving time, costs and effort
Recently, the Prime Minister issued a telegram requesting a reduction in construction licensing procedures for works in projects with detailed plans at a scale of 1/500 or works in areas with approved urban design. The goal is to help save time, costs and effort for businesses.
Sharing with Lao Dong Newspaper reporter, Ms. Giang Huynh - Director of Research & S22M, Savills City. Ho Chi Minh City - said that this is a move that can create many positive changes for the market.
Reforming construction licensing procedures is a positive move, especially for real estate development enterprises in the current context. In fact, the process of applying for a construction permit usually takes 3 to 6 months, or even longer if the project has to adjust the planning or seek opinions from many authorities. The prolonged procedures not only affect the implementation progress but also increase financial costs, putting pressure on capital flow and the ability of enterprises to rotate.
Ms. Giang Huynh said that in that context, the proposal to exempt construction permits for projects with detailed 1/500 planning or in areas with approved urban design is a reasonable step. For these projects, technical indicators such as construction density, height, reverse area or infrastructure have been specifically identified, so a construction registration mechanism can be applied instead of the traditional permission process while still ensuring compliance and supervision.
"Sortening procedures will help businesses optimize operations, bring products to the market at the right time and use resources more effectively. Overall, this is a reform that can contribute to improving the investment environment and boosting legal supply to the market" - Director of Research & S22M, Savills Ho Chi Minh City shared.
However, Ms. Giang Huynh emphasized that this policy needs to be implemented simultaneously with a strict post-inspection system. To ensure comprehensive efficiency, it is necessary to promote digitalization, build a centralized data system to monitor progress, monitor construction quality and publicize inspection results. At the same time, reforming construction procedures needs to be implemented in parallel with removing greater obstacles in land, planning and land use fee valuation - which are core bottlenecks for the development of real estate projects today.
Create maximum favorable conditions for businesses and people
After the Prime Minister Pham Minh Chinh issued Capital No. 78/CD-TTg dated 29.5 on cutting administrative procedures in the field of construction, on June 2, the Ministry of Construction issued Document 4377/BXD-VP. The Ministry of Construction requires the heads of agencies and units to directly direct the process of reviewing, cutting and simplifying administrative procedures (administrative procedures) in their field; Thoroughly grasping in the agency and unit that made it with the highest determination. Ensure to cut at least 30% of the time for settlement of administrative procedures; 30% of the cost of compliance with administrative procedures; 30% of business conditions in 2025 ...
At the regular Government press conference on the afternoon of June 4, Mr. Nguyen Danh Huy - Deputy Minister of Construction - said that the viewpoint of the Party and State is to create maximum favorable conditions for businesses and people.
The Ministry of Construction also has the view that all administrative procedures and licenses must be strictly implemented and reviewed to simplify, abolish, and create the most favorable conditions for people and businesses.
According to Mr. Huy, the policy of revoking the construction permit was proposed by the Prime Minister in Official Dispatch No. 78. The Ministry is reviewing the entire system of legal documents regulating licensing from decrees and circulars issued by the Ministry of Construction.
