Construction contractors are having to take short to raise long
According to Mr. Nguyen Quoc Hiep - Chairman of Vietnam Construction Contractor, construction contractors are having to take short to raise long.
This is the sharing of Mr. Nguyen Quoc Hiep at the recently held Business Dialogue Conference on administrative procedure reform in construction investment and related fields.
As a representative of construction contractors, there are currently over 2,000 construction contractors making a worthy contribution to the GDP of the country. According to Mr. Hiep, recently, experiencing the Covid-19 pandemic, experiencing a price storm of up to 40%, many contractors did not dare to accept jobs because of the price storm. However, with their best efforts, the contractors tried to get ahead, reaching 80% of the year's revenue. Only a few large enterprises were able to overcome it, while most were greatly affected. This is in terms of numbers, but in fact, investors are stuck in disbursement and capital, the State Bank tightens credit to real estate.
It can be said that the current construction industry is trying to take "short for long".
Measures to remove for construction contractors
According to Mr. Hiep, in order to remove for construction enterprises, we would like to propose to the Ministry of Construction a number of points as follows: Firstly, to ask the Ministry of Construction for permission to amend the Decree on construction contracts, in which it is necessary to clearly define the payment responsibilities of the investors by specific regulations. Proposal for amendments to payment of construction contracts: investors, especially investors of non-budget capital, must have a payment guarantee of 30% of the loan guarantee contract. A construction contract must have 4 guarantee contracts, while the investors do not have any guarantee for capital. Causing difficulties for businesses, asking for payment guarantees. It is proposed that the project without signing the final settlement shall not be put into use. In dealing with the current storm surge, coordination between agencies is required. Since the current price update speed in the market is always 1-2 months behind, so the updated payment prices are still not realistic.
It is recommended that the Ministry of Construction have an assessment on bidding technical standards, on real estate investment, business industries affected by 12 different laws, which should slow the progress of projects, leading to delays in progress. construction, affecting the number of jobs for contractors.
"We recommend that on the selection of investors, the regulation of urban land conversion (in which there must be a part of urban land) is what limits all housing projects because currently warehouse land, factory land... It is this regulation that is causing bottlenecks for about 400 projects both in Ho Chi Minh City and Hanoi", Mr. Hiep said.
The Housing Law 2014 and the Government's Decree are warping about the warranty period. Currently, the work of site clearance compensation is very complicated, the government agencies are not strong in compensation work. Provinces that offer high compensation coefficients are easier to implement. Therefore, it is proposed to have a land compensation mechanism, on the issue of land valuation. It is recommended that provinces announce the land valuation coefficient so that investors can calculate it, not wait for the Valuation Council. The current legal documents are overlapping, there should be a unified focal point between the ministries for general coordination.
The allocation of 20% of the land fund for social housing projects is inadequate. It is recommended that projects pay this difference into the social housing fund and managed by the Ministry of Construction.
Proposing to amend Circular 06 to limit the inadequacies between the Management Board and residents; Circulars of the State Bank. Agree to tighten corporate bonds to limit risks in the field of real estate investment.
