HoREA proposes insurance companies to participate in real estate investment

Recently, in the draft Business Law insurance (amended), the Economic Committee of the National Assembly has proposed to abolish the regulation that allows insurance enterprises to use idle capital to do business. real estate.

Many opinions agreed, but instead, the Ho Chi Minh City Real Estate Association (HoREA) proposed that there should be regulations allowing these businesses to use idle capital to invest in real estate.

According to HoREA, insurance capital is also a huge source of socialization capital that needs to be exploited and used effectively, it will supplement an investment capital, contribute to share and relieve pressure on credit institutions.

HoREA proposes insurance companies to participate in real estate investment. Illustration.

Regarding the use of idle capital that insurers are allowed to invest in the real estate sector, according to the association, up to 10% for non-life insurers, up to 20% for insurers life is appropriate, ensuring safety, efficiency and liquidity.

According to calculations, by 2035, the capital mobilized for the economy from insurance businesses will account for 20% – 30% of total long-term investment capital.

Mr. Le Hoang Chau – Chairman of Ho Chi Minh City Real Estate Association said: “Resolution 32 of the Politburo orients insurance activities in our country from now to 2030 – 2045, which encourages business The real estate sector and other sectors of the economy need a lot of capital to invest, when we don’t allow insurance companies to invest in real estate. or some other professions will not be consistent with the direction of Resolution 32 of the Politburo”.

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