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MINISTRY OF CONSTRUCTION ORGANIZES THE CONFERENCE TO REMOVE DIFFICULTIES FOR ENTERPRISES AND PEOPLE IN THE SOUTHERN REGION

Press room |

23-10-2021

On October 22, at the headquarters of the South Agency under the Ministry of Construction held a conference to remove difficulties for enterprises and people affected by the Covid-19 epidemic and promote socio-economic development in the South. The conference was attanded by leaders of Departments, Agencies, Institutes of the Ministry of Construction, leaders of Ho Chi Minh City, Dong Nai, Binh Duong and enterprises in the area. Deputy Minister of Construction Bui Hong Minh chaired the conference.

Deputy Minister Bui Hong Minh made the opening speech of the Conference.

The conference was part of the program organized by the special working group under the Ministry of Construction to remove difficulties for enterprises in the southern provinces and cities. The conference listened to the opinions and recommendations of enterprises and State management agencies. Deputy Minister Bui Hong Minh said: “The Ministry of Construction shares the difficulties, losses of property, human and damages during the epidemic. On that basis, solutions need to be quickly given to remove difficulties and promote economic development.”

At the Conference, many opinions and recommendations were sent to the Ministry of Construction with the desire to solve many problems in Ho Chi Minh City and the southern provinces and cities, and soon recover the economy.

Mr. Le Hoang Chau - Chairman of Ho Chi Minh City Real Estate Association proposed some issues as follows: for the apartment types of condotel, officetel, home stay, home farm, it’s needed to put building type with the function of accommodation into the business to manage and implement consistently. For the situation of raising capital too large at the time of deposit when the Law only stipulates that the deposit amount for trading must not be no more than 30%. There are specific policies to remove the problem of social housing enterprises when there are up to 15 real estate corporations in Ho Chi Minh City that spent money to build social housing but hardly receive any incentive.

Chairman of Ho Chi Minh City Real Estate Association Le Hoang Chau proposed a number of issues related to real estate.

Mr. Le Viet Hai - Vice Chairman of the Vietnam Association of Construction Contractors suggested: "The progress of the works has been affected, the construction has been suspended for the past time, but the contractor is still fined by the investor for being behind schedule, the Ministry should have regulations on force majeure conditions for adjustment so that contractors and investors have a basis to share with each other, give the specific regulations when investors delay the payment. In the current situation, applying for CIT reduction is not a good solution. The way for enterprises to maintain production and business is the key issue, if already profitable, they should not apply for a reduction at this time. At the same time, solving difficulties for legal issues of projects is also solving difficulties for contractors.” In fact, many projects had to suspend construction or work in a limited manner and contractors also suffered from a lot of damages.

Mr. Le Viet Hai - Vice Chairman of Vietnam Association of Construction Contractors.

Mr. Dinh Hong Ky - Vice Chairman of the Vietnam Association of Building Materials said: the freight increased 4-5 times during the epidemic, there were different regulations in each province, so the transportation and circulation of goods became very difficult. There was no consistency in the direction between the Central Government and the local authority, the situation of "the lower levels fail to follow the direction of the higher levels" was quite common for recent times.

A representative of enterprises in the field of real estate, Mr. Tran Quoc Dung - Deputy General Director of Hung Thinh Corporation proposed 7 issues, including issue with Condotel projects, the investor left 3 - 5% to exploit the business from apartment buyers. Condotels must be subject to standard management according to the hotel model, so the method of apartment building management could not be used, there was no mechanism by the Board of Management, the customers must pay 2% of maintenance cost and the investor would follow throughout the existence of the product. The regulation that projects can only be transferred when they have a certificate of land use rights also cause many difficulties. Synchronously and consistently implement documents and permits between the central and local governments to avoid the situation of reviewing and wasting more time.

Mr. Tran Quoc Dung - Deputy General Director of Hung Thinh Corporation.

The conference also received many recommendations from State management agencies.

Mr. Tran Hoang Quan - Director of Ho Chi Minh City Department of Construction said: The Ministry of Construction promptly issued a mechanism for the construction of emergency works, so many field hospitals were quickly completed for the city's anti-epidemic work.

At that time, Ho Chi Minh City did and did it as quickly as possible, so the cost would be higher than in normal days. Request the Ministry of Construction to propose the Prime Minister on the issue of finalization according to actual unit prices.

Mr. Quan also recommended that a number of regulations in the Law on Construction, Law on Land, Law on Investment and Real Estate Business should have a consistent point for better enforcement.

Mr. Tran Hoang Quan - Director of Ho Chi Minh City Department of Construction.

Representatives of the Department of Construction of Dong Nai, Binh Duong and Long An also made similar recommendations. Mr. Vo Hoang Ngan - Director of Binh Duong Department of Construction recommended more about the project of selling off-the-plan houses that requires the consent of the buyer. However, for selling the off-the-plan houses, it is not possible to identify a specific buyer to agree to. Therefore, this regulation needed to be revised.

Mr. Ngan also recommended that the district-level construction inspection had currently been abandoned, it would be very difficult for management of the Department if the province-level construction inspection was abandoned. The Departments of Construction of Dong Nai and Long An jointly proposed the regulation on the minimum boarding house room area for employees to rent expired and replaced by Circular No. 09 from October 1, 2021, but this Circular did not regulate the area, therefore the locality has no basis to accept these project types.

Mr. Vo Hoang Ngan - Director of Binh Duong Department of Construction.

The conference also listened to recommendations from the Departments, Agencies, Institutes and project management boards on transport, urban infrastructure, industrial civil works... related to many difficulties after the epidemic.

Speaking to sum up the Conference, Deputy Minister Bui Hong Minh affirmed: In the spirit of seeking for further improving the institution, sharing difficulties and solving problems quickly, many recommendations of the delegates were submitted by the Ministry of Construction to the Prime Minister and meetings of the relevant Ministries, such as "force majeure" issue but the issue had not been clearly defined. However, the Ministry of Construction was studying and proposed a number of issues, especially the issue of direct costs during the anti-epidemic period.

The Deputy Minister added that for the issue of strictly controlling construction steel prices, avoiding speculation and hoarding to raise prices, the Ministry of Industry and Trade assigned a working group to inspect this issue. A lot of problems of the construction industry were coordinated by the Ministry of Construction with ministries and sectors in removing difficulties as quickly as possible for enterprises and people.

Overview of the Conference.

At the conference, Deputy Minister Bui Hong Minh answered the recommendations of enterprises and state management agencies on each specific issue. During this fourth epidemic, the Construction industry promptly guided in the construction of a field hospital to meet epidemic prevention and control activities. After the hospitals complete their tasks, the management levels need to have more specific instructions, such as settlement issues, difficulties when enterprises are having to implement directives 16, 16+.

The Ministry of Construction will propose the project progress review to investors and contractors. Standards and regulations of motels, worker accommodation, policies for low-income housing. Along with the direction of the Government, the Ministry of Construction and the departments, boards and branches in the localities will also review to solve problems and amend accordingly. The Ministry of Construction will assign a number of management areas to the locality.

The special working group to remove difficulties for enterprises that the Ministry of Construction established not only removed immediate difficulties for enterprises but also oriented to promote the development of the construction industry such as: Building materials, digitalization of the entire management system, gradually better satisfaction with the local market of building materials. Do what to make materials become increasingly smarter and greener. The Ministry of Construction is also studying to issue regulations on green smart urban projects, response to climate change, in which building materials are one of very important factors to decide. For this issue, the field of construction engineering also will be studied to apply to the function of the Industry.

In the field of building materials, attention must be paid to the circular economy in order to save resources and reduce construction costs.

Subjects in the construction industry especially improve the quality of the consulting team, improve the management capacity of the entire project.

The Law on Housing and the Law on Real Estate Business, the Ministry of Construction is deeply studying each housing segment to develop appropriate characteristics, standards, separate management policies, and studying to issue regulations on management of underground and aboveground space in urban areas.

The Ministry of Construction always receives and listens for solving current pressing problems and looks forward to the future to develop the Construction industry.

The conference received high support from the delegates. On the sideline of the conference, talking to the Vietnam Journal of Construction, many enterprises commented: The conference focused on many key and specific issues with specific contents, opening up opportunities for enterprises and the community. Hopefully, some contents will be resolved soon, many difficulties will definitely be settled in time.