State Management Methods for Real Estate Business

Central State Management is the organized and legal impact of the central management agency on all aspects of the country's social life in order to effectively use resources to achieve the set goals. This is the management with the highest authority, serving as the basis for local state management to follow.

Local government management is the process by which local authorities implement regulations issued by central management agencies, and at the same time issue documents regulating policies and mechanisms related to activities that need to be managed under their authority in a manner that is appropriate to the socio-economic development situation of the locality.

1.1.3.3. Concept of State management of economy

State economic management is the organized and legal impact of the State on the national economy to make the most effective use of domestic and foreign economic resources and possible opportunities to achieve the country's economic development goals set in the context of international integration and expansion.

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In a broad sense, economic state management is carried out through all three types of State agencies: legislative, executive and judicial.

In a narrow sense, economic state management is understood as a state management activity to operate the economy, carried out by the executive agency (Government).

1.1.3.4. Concept of real estate business management

Based on the understanding of the concept of management and state management, we have the concept of state management of real estate business as follows:

Real estate business management is the continuous impact through the use of State tools to regulate and control the activities of entities participating in real estate business activities in order to make it operate in accordance with the State's oriented goals.

State management of real estate business is a complex task, with direct and indirect management participation by many different management agencies from central to local levels.

Central-level state management of real estate business is the highest authority, regulating all relationships in real estate market management.

Local State management of real estate business is a management activity based on the principle of submission to central management. Local State management of real estate business is the implementation of central management regulations to suit the specific situation of each locality. Therefore, the concept of local State management of real estate business is understood as follows:

State management of real estate business activities at the local level is to develop plans, schemes, organize, implement and inspect to ensure business activities are effective and in line with local economic development goals.

1.1.3.5. State management methods for real estate business

The State has an undeniable role in real estate business. How the State plays this role has a direct impact on the market movement. There are 3 management methods that the State applies, which are:

a. Coercive method (administrative method)

Coercive method is the way of direct impact of the State through decisive and compulsory decisions within the legal framework on economic entities, in order to realize the State's goals.

This method is mandatory and authoritative. Mandatory requires that the management subjects strictly comply with the impacts, and if they violate, they will be punished. Authoritative requires that the State management agencies are only allowed to make impacts within their authority.

The essence of coercion is to use damage as pressure to force the subject to comply with the State's management goals. When coercing, the State

The state gives damage as a shield for the management object because of fear of damage to itself and having to follow the state.

b. Stimulus method (economic method)

The stimulation method is the way the state indirectly influences the management object based on economic benefits that guide the management object, aiming to make the management object voluntarily and proactively complete the assigned tasks well.

The economic method is a method of influencing the management object not by administrative coercion but through benefits, that is, the state only sets goals and tasks to be achieved and at the same time sets out economic incentives and material means that the management objects can use to organize the implementation of tasks.

c. Methods of persuasion and education

The method of persuasion and education is the way the State influences people's awareness and emotions to enhance their self-awareness, positivity and enthusiasm in performing well assigned tasks.

The method of persuasion and education does not use coercion or benefits, but rather creates awareness of objective necessity so that the management object voluntarily performs its tasks.

It is necessary to clearly and correctly perceive the differences between management methods in terms of nature (mandatory or voluntary, the way of using power in management), the role of impact (direct or indirect, making immediate changes or from the actions of the subject), the content of impact (by material, economic or by spirit, belief or administrative regulations). All three methods above are very necessary and show different levels of importance depending on the management object and the specific environment. In practice, it is necessary to use a reasonable combination of the above methods to bring about the desired effect in State management.

Each method of State management has its strengths and weaknesses, and humans are the sum of social relationships, so they need to be combined to be most effective. The above methods all interact, complement each other, and are all used to achieve economic State management goals.

1.2. Contents of management of real estate business activities at provincial level

1.2.1. Disseminate and guide the implementation of legal documents on real estate business management.

Legal documents on real estate business institutionalize the Party's guidelines, policies, and guidelines, the Constitution and laws of the State, meeting the requirements of comprehensive national renovation towards industrialization and modernization. The Law on Real Estate Business must thoroughly grasp the Party's viewpoints on developing the real estate market in our country in the direction of: Proactively and steadily developing the real estate market including land use rights, with the participation of many economic sectors; taking care of solving the housing problem for the people, encouraging economic sectors to participate in construction and investment in real estate business under the guidance and management of the State; gradually opening the real estate market for overseas Vietnamese and foreigners to participate in investment.

Although the real estate business law has positive impacts in improving the publicity and transparency of the real estate market, this seems to be insufficient. There is a lack of regulations on the construction, storage and publication of a database system on real estate markets. Real estate investors face many difficulties in accessing procedures, land allocation, land lease, investment project establishment, etc. Moreover, the feasibility of some provisions of the real estate business law is still low, real estate investors still face harassment when carrying out administrative procedures related to real estate investment and business.

The law on real estate business has its own specific characteristics compared to the legal system for trading other types of goods. This comes from the nature of real estate as land and assets attached to land. With a regulation on public ownership of land, people only have the right to use and own assets attached to land. Regulations restricting the rights of users have created the characteristics of the legal system on real estate business because the state has the right to decide on all types of land. With the change of the economic mechanism, real estate business activities have been expanded, creating maximum conditions in many aspects from finance, credit, compensation for site clearance, construction of technical infrastructure, contributing to the development of real estate business activities, creating momentum for economic development, increasing budget revenue.

In the law on real estate business, the issue of transparency and consistency are two important factors for the real estate market to operate smoothly and effectively, in accordance with the law of motion. It can be seen that with a country on the path of development, there are still many changes in direction, but what we have done is very good, but we must have a long-term and new vision to be able to adapt to fluctuations in the world or due to internal factors.

Local state management agencies are responsible for disseminating and implementing information publicly and transparently according to the provisions of the Law and building a synchronous information management system, a real estate ownership monitoring system and a unified real estate market evaluation index system.

1.2.2. Develop and organize the implementation of planning, plans and policies for real estate business development.

1.2.2.1. Develop and organize the implementation of real estate business development plans and projects

Socio-economic development planning and plans are strategic orientations and the concretization of those orientations. They are one of the

The main tools in state management of real estate are important bases and foundations for market development. Also through planning, the real estate system and the real estate market are guaranteed to be unified, feasible and effective. The content of land use planning and plans includes many tasks and stages in a unified system, in which the main issues are research, implementation, investigation, survey, measurement, classification, statistics and cadastral mapping to propose options and plans for using each territory of the country in each specific period associated with each stage of socio-economic development of the country.

Based on the economic development strategy and land conditions, the state develops master plans for urban, road, and agricultural land use. Functional sectors, based on planning documents and master plans, develop specific land use plans for that sector.

1.2.2.2. Organizing the implementation of state management policies on real estate business

Management policy for real estate business is a synchronous system of State policies affecting real estate business. To regulate real estate business activities, the State uses main policies such as: Land investment policy, credit policy, tax policy, market policy.

a. Land policy

Land policy is the basic policy and the basis for management policies for the real estate market. The current land policy in our country is built on the land law promulgated by the National Assembly of the Socialist Republic of Vietnam in 2003. In other words, land policy concretizes the provisions of the law, bringing land law into social life.

The Land Law stipulates that land belongs to the entire people, the State is the representative owner, assigns land to individuals and socio-economic organizations for use, allowing land users the following rights: the right to convert, transfer, lease, sublease, inherit, donate, mortgage, guarantee capital contribution with land use rights. The Land Law allows land users to have one of the above rights when participating in real estate business and leased land on which there is property permitted by law to also participate in the real estate business market. However, land is allowed to participate in real estate business if the user meets all the following conditions: has a land use right certificate, the land is not in dispute, the land use right is not seized to ensure enforcement of judgment and within the land use term. Based on the provisions of the land law, land policies impact real estate business to mobilize capital sources from all economic sectors participating in real estate business while ensuring effective use of national land resources. Through specific policies such as tax policies, financial obligations for land use, transfer of land use rights, land use duration, land use limits, etc. to prevent speculation and profiteering, causing disruption to the real estate business market.

b. Real estate credit policy

Real estate credit policy is a tool to regulate the real estate business market. The development of real estate business is directly affected by the measures to tighten or loosen credit. Because real estate has great value, it always exceeds the financial capacity of the investor or construction project owner within a certain period of time. However, due to the characteristics of real estate that cannot be moved and the long-term use, to create new real estate, the investor relies on the potential future value of the new real estate, or mortgages the value itself to form a loan based on the future value of that real estate to borrow from other sources.

different: banks, potential customers and issuance of construction securities with medium and long term. Obviously, the formation of real estate credit is inevitable, it reflects the loan-borrowing relationship between individual lenders, economic organizations with real estate investors and businesses, based on the principle of term repayment. But due to the specific nature of price fluctuations, the deferral period with the unpredictable complex factors of the real estate business market, sometimes bustling, expanding in scale, sometimes gloomy and declining. The measures, macro-regulatory interventions of the State. When a policy is issued, people only see its positive side, not fully anticipating the limitations and shortcomings of the policy. The limitations are thoroughly exploited by speculators, causing the real estate business market to operate distortedly, reflecting the supply-demand situation and prices of real estate goods. The real estate bubble has ballooned to an uncontrollable limit, an inevitable collapse that will drag down the entire system of banks, financial companies, and credit institutions.

Real estate credit policy for bank credit sources must ensure that credit conditions and real estate credit risk management are strictly regulated and strictly complied with. Especially complying with regulations on real estate project appraisal, capital repayment plan, collateral valuation, loan disbursement according to progress. Real estate credit policy needs to create a strong credit capital source formed from investment banks, development banks, commercial banks with independent accounting or in association with commercial banks to underwrite issuance or directly issue bonds, real estate certificates, or securitize capital sources for the market. However, it is necessary to ensure the circulation of medium- and long-term capital with capital sources of corresponding length through the stock market or through the professional mechanism of investment banks, development banks, financial companies, independent investment funds without relying on short-term services of commercial banks. However, it is important to emphasize that securitization solutions

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