Taxing abandoned land, blocking the issue of bonds to collect money for land
At the seminar themed “Creating momentum for the recovery of the southern real estate market” held by Investor Magazine on the afternoon of April 15, experts discussed existing issues in the auction of land use rights. land use, slow to put the land into use.
Mr. Nguyen Dinh Tho, Director of the Institute of Strategy, Policy, Natural Resources and Environment (Ministry of Natural Resources and Environment), said that the land auction was not healthy recently.
Although many cases of project implementation time and use of land funds are slow due to procedures, there are also situations where businesses have left land from 2012 until now, or have the goal of completing project procedures as quickly as possible. as slowly as possible to wait for land prices to rise and then sell commercial products. Many businesses buy land for 1,500 billion VND but are willing to pay a fine of 1,200 billion VND, ready to slow down to pay the fine.
Besides, there is a situation of pushing up land prices and then dropping the stakes. Although the regulations are relatively clear, in the process of organizing and implementing in localities, it is still too strict according to regulations and auction plans that are not suitable with reality.
In this regard, according to experts, the deposit is money to participate in the auction. After the auction, the previous deposit can be combined with the deposit. The deposit regulation in accordance with the civil law is very clear as a commitment to the performance of the contract. In the auction plan, the deposit is at the starting price, and the deposit must be paid in full upon leaving the auction room.
“The problem here is due to regulations, as well as the introduction of an inappropriate auction plan. Vietnam currently has a high land revenue compared to the world. In the world, real estate in general accounts for 50 – 70% of national assets, recently the introduction of a large support package has pushed up real estate prices, this is normal … “, director of the Institute for Strategy, Policy, Resources, and Environment said.
Mr. Nguyen Dinh Tho said that it is expected that in the new resolution to replace Resolution 19, financial measures will be applied, such as 5% tax in Australia when businesses voluntarily declare slow implementation, if the State goes survey will apply 20%. In Korea, if it is late, it will pay 9% after 7 years, and then pay 10% after 10 years.
“We hope this time we will limit leaving the land abandoned for too long. The application of the property tax The Ministry of Finance is hesitant, but if introduced, it will play a huge role in avoiding the situation of abandoned land like this. Recently,” said Mr. Nguyen Dinh Tho.
An important issue discussed by experts is the source of capital for real estate businesses in the context of state banks tightening credit in real estate. The Ministry of Finance is reviewing the issuance of corporate bonds to ensure compliance with the law and protect investors’ interests.
On this issue, Dr. Le Xuan Nghia, an economic expert, said that the Government is controlling bonds with three objectives: corporate finance, collateral, use purposes…
“Financial control is right, every country does it, but the control of collateral is not necessary, so is the purpose of use. International practice does not have these two factors, but has a different management method. Verification of the intended use can only be done by banks, because of their disbursements.It is recommended that the usage check is very expensive and not feasible.
Therefore, checking collateral should only be applied to large enterprises, while small businesses can’t get assets to secure. Issues quickly check reviews and ratings of businesses. In order for the market to develop in the long term, for businesses to have capital to develop projects, the bond market is very important, so it is necessary to accelerate the rating of bonds. Bank credit capital, every time the real estate supply increases too quickly, it leads to freezing. But now, on the contrary, the market is at risk of creating a bubble,” Nghia said.
According to the assessment criteria published by the IMF, an average person can buy a house every 37 years with an average income. Until now, we look back, our country is approximately the same. Land is increasingly difficult, bond credit is similar, so the supply is limited. If there is no fundamental reform in procedures, to increase supply, tighten bonds, etc., the market will easily create a real estate bubble, directly related to the banking system.
Mr. Nghia said, many businesses take advantage of banks’ backing to issue bonds, they don’t use that money to develop existing projects but use it to buy and collect land.
Economic expert, Dr. Le Xuan Nghia.
An expert once said that a tax on unused land is very important, to prevent long-term resource speculation. Buying land, gathering land, gathering resources, that is the self-evolution and self-transformation of enterprises. It is said that the war for land is like the last generation of this economy, so it has to be bought and sold. Taxation is therefore very important.
“We are focusing on two directions: transparency of the issuer’s finances, periodic audit and disclosure, definitive rating according to international standards, and public disclosure. There may be businesses with a slightly weak rating, plus there are collateral assets. Secured property is not a prerequisite, but tax will be used to handle the problem of gathering land, resources and assets,” Nghia said.
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