The Vietnam Federation of Commerce and Industry (VCCI) reflects on the conditions for capital mobilization through loans at credit institutions (Article 46 of Decree No. 95/2024/ND-CP) as follows:
One of the conditions for mobilizing capital is to have a Decision on land allocation and land lease. Meanwhile, investors participating in bidding and auctioning projects using land will borrow capital from credit institutions after the results of selecting the winning investor or winning the auction to fulfill financial obligations.
However, with the condition in Decree No. 95/2024/ND-CP, investors will not be able to borrow capital from credit institutions to fulfill this financial obligation, because to have a decision on land allocation, investors must fulfill their previous financial obligations.
This limits investors' access to credit, does not promote credit activities and investment activities in real estate projects.
Regarding this content, the Department of Housing and Real Estate Market Management (Ministry of Construction) has the following opinion:
Currently, the Department of Housing and Real Estate Market Management is drafting a Decree amending and supplementing a number of articles of Decrees in the field of housing and real estate business to report to the Ministry of Construction to submit to the Government for promulgation (expected in 2025).
Therefore, for the content of this proposal, the Department of Housing and Real Estate Market Management will study to amend and supplement Article 46 of Decree No. 95/2024/ND-CP dated July 24, 2024, ensuring compliance with the actual situation to submit to the competent authority for promulgation.
