PM forms multidisciplinary task force to resolve real estate woes

The task force, per a decision signed by deputy prime minister Le Van Thanh Thursday, comprises senior officials from multiple fields including construction, banking, finance, planning and investment, natural resources and the environment, and public security.

Construction Minister Nguyen Thanh Nghi will head the task force which will have two deputies - Deputy Construction Minister Nguyen Van Sinh and Deputy Governor of the State Bank of Vietnam Dao Minh Tu.

Other members are: Deputy Minister of Public Security Luong Tam Quang; Deputy Head of the Government Office Nguyen Cao Luc; Deputy Finance Minister Nguyen Duc Chi; Deputy Minister of Natural Resources and Environment Le Minh Ngan; and Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc.

The real estate sector is an important component of the national economy, currently contributing 11% of Vietnam’s GDP. It also has organic relationships with other fields and creates many jobs.

However, the sector has stagnated recently in the face of several challenges that have caused many projects to be delayed.

Experts have said that one of the main challenges facing the sector is restricted credit and bond issuance, which have cut off cash flows. Many real estate businesses have had to downsize and borrow money from different sources at high interest rates or even sell off some of their assets, according to the HCMC Real Estate Association.