Manh Tung and Quoc Hung
Binh Trieu bridges that connect the city center with outlying areas in HCMC. There is no legal framework available for PPP investments - Photo: Anh Quan
The draft was put on the table during a workshop in HCMC on March 31. Delegates spent much time discussing Article 1, which regulates construction investment, rights and obligations of organizations and individuals in the activity.
Tuan said that the concept of construction investment was narrower than that of construction.
“Construction licensing involves building and design assessment issues. Meanwhile, regarding rights and obligations of organizations and individuals in construction investment, we rule contractors out,” Tuan said.
In fact, contractors are included in the concept of construction. As the Construction Law was issued in 2003 while the nation was drafting the Investment Law, there had been confusion between construction and investment definitions.
The concept of ‘construction investment’ should be replaced with ‘construction’ in Article 1. In addition, the Ministry of Construction should add one subject to the law – organizations and individuals that implement construction-related work, Tuan said.
Minister of Construction Trinh Dinh Dung said that the Government and the law compiling board had strongly debated revisions to the law when the draft received many suggestions from the National Assembly Standing Committee.
In fact, construction investment comprises of two processes: spending and building. “It would be more complete to use the term ‘construction investment’. Construction is okay but a further explanation for it is needed. Therefore, adjustments to the law must be considered carefully,” he said.
Delegates at the seminar also discussed construction insurance with many saying that insurance is not necessary for all projects.
Firms at odds over VND50-trillion package
A new VND50-trillion credit package has been launched in a bid to help revive the real estate market but many enterprises have yet to understand the nature of the program, so their responses are limited.
Vietnam Construction Bank (VNCB), in collaboration with Thien Thanh Group, launched the commercial credit package last week to help ease difficulties of the property market and speed up sales of building materials.
Le Huu Nghia, director of Le Thanh Co., said that his firm had no demand to take out loans from the package. Le Thanh has signed credit contracts with banks for existing projects with the same lending rate, so it would not leave current lenders with long relationship to partner with a new bank.
“If the VND50-trillion package offers a lower lending rate than commercial rates, I will certainly be interested in the program,” Nghia said.
A real estate expert said that homebuyer benefits in the package are minimal. “It takes time to evaluate impacts of the package. However, it would only gain success if homebuyers could reap clear benefits,” he said.
Dinh Quang Huy, chairman of the Vietnam Building Ceramic Association (VIBCA), said that this credit package looks like a sentiment stimulus than a real credit support as its lending rate is not low.
Đăng ký: VietNam News