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Real estate is affected by 60 Laws, a project needs 36 seals to complete!

Real estate is a complex profession, with the task of promoting a series of other economic sectors, so there must be a disassembly for the real estate market. But according to statistics, there are about 12 laws affecting real estate, and 60 related laws“, Mr. Nguyen Quoc Hiep – Chairman of the Board of Directors GP Invest – share at Conference to suggest amendments to policies and laws for housing development and the real estate market organized by Vietnam Real Estate Association (VNREA).

Administrative procedures in this area are extremely complicated. Mr. Hiep said that according to GP Invest’s calculation, a project must have 36 seals to complete. Even, in the opinion of a lawyer, there are projects that require up to 120 seals if unofficial regulations are included.

President of GP Invest lamented: Real estate is affected by 60 Laws, a project needs 36 seals to complete!  - Photo 1.

Mr. Nguyen Quoc Hiep – Chairman of GP Invest’s Board of Directors. Photo: ReaTimes.

Administrative procedures are like that, legal procedures are more complicated, to the point that Mr. Hiep compares them to “matrix”. The top management of GP Invest proposed to take the Land Law and the Investment Law as two basic laws, and specialized laws based on these two Laws as the basis for amendment.

As for the current situation, as a business, GP Invest does not know which law to apply.

We went to the law enforcement agency and was told this was approved by the Investment Law but entangled in the Land Law, approved by the Land Law but entangled in the Construction Law…

We went to the law enforcement agency and was told that this was approved by the Investment Law but entangled in the Land Law, approved by the Land Law but entangled in the Construction Law, and was entangled in the Planning Law… So we think it is necessary to have a law. background, must be based on the law of the background to exchange“, suggested Mr. Hiep.

Mr. Hiep shared that the Law on Land and the Law on Investment were also contradictory. Sub-provincial agencies such as Provincial People’s Committee or People’s Council do not know how to apply, so the projects are stuck forever.

Sharing the same opinion with Mr. Hiep, Mr. Le Tuan Hai – representative of Telin Group Joint Stock Company said that real estate must be considered as a commodity product, bought and sold in society. And when it is considered a commodity, it is necessary to reduce administrative procedures as much as possible to facilitate the purchase and sale.

We’ve changed the rule nearly 100 times but the results are still not really effective“, Doctor Truong Thanh Duc – Arbitrator of the Vietnam International Arbitration Center acknowledged.

President of GP Invest lamented: Real estate is affected by 60 Laws, a project needs 36 seals to complete!  - Photo 3.

Professor Truong Thanh Duc – Arbitrator of Vietnam International Arbitration Center. Photo: ReaTimes.

Mr. Duc shared that real estate prices compared to Vietnamese people’s incomes are too high, due to high demand, large supply-demand gap, product scarcity, and Mr. Duc said that it is also a consequence of entanglement. subject to the law.

I think that the market must always be in excess, but if prices keep increasing, there is a shortage of supply, it is not a market economy. If the supply is short, the law will increase the price, causing difficulties and increasing the mechanism of asking for gifts.

“A lot of laws have been changed, but it doesn’t matter if it’s open or tight, it’s important to create a sustainable market instead of a distorted one like today.”LS Truong Thanh Duc identify.

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Bao Bao

By Business and Marketing

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