The main problems hindering the development of real estate business in Vietnam

The construction part on the land, thus can replace the red book and pink book. With the above context, it can be said that the State is still confused in granting land use right certificates and ownership of constructions on land, so each Ministry still proposes to grant certificates in the field under its management. The solution for granting certificates for real estate, according to the opinion of NCS, is to only grant one certificate, which confirms both land use right and ownership of constructions on land . The granting of this type of certificate should be assigned to the Ministry of Natural Resources and Environment as the representative of the Government to recognize and protect the land use right and ownership of real estate of the people. Because real estate including houses and land are two fields managed by two Ministries, the Ministries are advisory agencies for the Government, directly under the Government, so if in the capacity of the Government, there cannot be two certificates. The main problem here is the way of thinking about management by sectors of the Ministries, so which sectors are under the responsibility of the Ministry, they propose solutions, which sectors are not under the responsibility of the Ministry, they do not mention because they are afraid of conflicting with other Ministries, leading to the phenomenon of overlapping management as mentioned. The issuance of a Certificate of Real Estate including both houses and land is considered a common practice in most countries, including countries with highly developed economies, and the real estates have had Certificates for hundreds of years, so its convenience and reasonableness are not much to debate.

Speeding up the process of granting land use right certificates and ownership of constructions on land will enable real estates to fully participate in official transactions in the market, avoiding forcing real estate owners to participate in underground transactions that cause losses to the State, causing unnecessary disputes in society in the field of real estate trading. To speed up the process of granting certificates, it is necessary to simplify procedures as well as required original documents, accept possible errors and consider them as inevitable consequences of lax management in the past. The collection of land use fees when granting certificates should also be reconsidered in the direction of eliminating this collection because it is also an obstacle to the process of completing the work of granting land use right certificates.

Another problem that exists in the current issuance of land use right certificates is that the definition of the boundaries of each plot of land is relatively simple and in fact this is the cause of many boundary disputes between different land users. In the current land use right certificate form, there is only a drawing of the plot of land placed in the actual orientation with the dimensions of the sides in meters. At first glance, it will not seem strange, but in reality, there are many disputes that arise in practice that the current land use right certificates cannot handle. For example, the boundary of a plot of land with the same dimensions is shifted to another location a distance away (imagine that we move the plot of land to one side without rotating the direction of the land), that is, it is possible to encroach on a neighboring plot of land while leaving the other plot of land on the opposite side a vacant space equal to the area encroached on the first plot of land. Thus, if based only on the current land use right certificate, it is impossible to determine whether the owner of this land has encroached on the adjacent land because the size and direction, which can be checked, of that land are in fact no different from the land use right certificate. This may not seem important, but in reality, many public lands have been encroached in that way without being detected during inspection and the encroached land can be divided with adjacent households. Experience in developed countries shows that in the land use right certificate of each land plot, the boundary of that land plot is determined by coordinate points according to the national coordinate system, so that no matter how much the land boundary (fence) may change over a long period of time, when necessary, its original location can still be accurately determined, so land disputes, especially those about boundaries, will be resolved quickly. Although the problem is small, it has great social significance because the phenomenon of encroachment on public land and border disputes is quite common today and needs to be thoroughly resolved.

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3.5.2. Innovation in providing information for real estate transactions.

Information in the real estate business sector, especially information originating from state management agencies, has a strong influence on business activities.

Real estate transactions need to have a suitable management mechanism so that everyone can access it and the cost of obtaining that information is not high. For example, information on planning, information on the legal status of land plots, real estate, information on real estate transactions that have taken place, especially real estate transactions in the primary market where the State is a party to the transaction. The organization of the information system must be both market-oriented, without a mechanism for asking for and giving, and mandatory for State agencies that own those information sources. For example, the sale of that information can be conducted by (two or more) enterprises that have the right to exploit the databases of State agencies on the basis of paying a fixed purchase price for a certain period of time. The fee for selling such information can be set by the State if there are few organizations that bid to provide information (to prevent these organizations from colluding to raise the price of information) or the price for providing information can be set freely by supply and demand (if there are many organizations participating in providing information), that is, the information system is organized according to a competitive mechanism. The way the real estate information system is organized as above helps the State reduce the cost of maintaining its own apparatus to provide information to the market because this system is both costly and often ineffective, easily turning into a system of asking for and giving because State organizations are often not interested in profits, so there is no effort to popularize their services to the general community, the provision of information services is therefore only an administrative task and not the motivation of the organization. Easy access to market information at low cost will make the real estate market more transparent, less flawed and thus will make it develop in the right direction, reduce negative phenomena as well as bad consequences for market participants.

3.6. IMPROVE THE QUALITY OF PLANNING WORK, REORGANIZATION OF SERVICES SUPPORTING REAL ESTATE BUSINESS ACTIVITIES.

3.6.1. Improve the quality of land use planning and planning.

Land use planning and planning play a very important role in the field of land management and use in the most effective way. The 2003 Land Law has devoted 10 articles, from article 21 to article 30, to regulate planning work, which also shows the importance of this work. Some planning issues have been mentioned in many places but always play an important role, so they need to be mentioned: the scientific nature of land use planning and planning, feasibility in the context of the socio-economic conditions of the country , of each region and the transparency in the publication of approved planning information. The scientific nature of land use planning must be consistent with the overall socio-economic development plan of the country, of each region, of each locality, consistent with natural conditions, economic conditions, society and market demand. Planning must reflect the current status and future land use needs. If these requirements are not met, the planning will not be feasible, will become a suspended planning and will become an obstacle to production and business activities, and to the daily life of the people. The issue of announcing approved planning is also a frequently mentioned issue. There is currently no clear mechanism on this issue, so information about planning is not widely disseminated, leading to violations and unnecessary losses for land users such as construction on planned land, buying and selling land that has been planned for other purposes. Moreover, the lack of a mechanism for widely and promptly announcing approved planning has created conditions for those with advantages to know this information early to take advantage of it and create negative effects in this field. Thus, in addition to widely announcing, timely announcing is very important because this way market opportunities will be shared equally among all citizens, avoiding social injustice. Therefore, there is a need for specific and highly legal regulations in the regulations on timely and widespread announcement of planning, such as announcement in newspapers.

is defined as the official information channel on planning, announced on the websites of designated agencies, announced by signs in public places, near main traffic routes...

One issue mentioned in Chapter 2 is that the planning period as currently prescribed is too short for real estate investment activities (10 years). Therefore, the State needs to study extending the planning period to at least 30 years and include commitments to its responsibilities when the State changes the planning, leading to losses for real estate owners who have strictly complied with the State's regulations in investing in construction works. If the planning period is as short as it is now, it will create a sense of concern among real estate investors, making them very hesitant in their long-term real estate plans.

Another important issue that NCS wants to mention here is the openness of planning options . As we know, planning problems often originate from macro plans and targets, so if planning is implemented scientifically and when the developments of the economic and social environment take place as predicted, it will basically bring good results in the process of putting land into use by the community in general. However, in cases where forecasts about the development of the economy in general and of the region in particular are not accurate, then adjusting the actual use of land to achieve the highest efficiency is a legitimate requirement. For example, land use planning in a certain area stipulates the proportion of land for housing, land for public works, land for commercial centers, land for office buildings, etc. In the first few years, the use of land as planned may be reasonable, but in the following years, when economic and social conditions change not as predicted, causing this area to become crowded with people, making it more popular for commercial activities. Therefore, the demand for housing in this area decreases due to noise while the demand for building commercial centers and office buildings for rent increases. Because the land has been planned,

The current difficulty in changing land use purposes affects the flexibility of land users in the process of land use. The above context shows that in current planning work, it is necessary to move towards open planning to make land use more flexible, more suitable to the requirements of life, improve the efficiency of land use as well as reduce State intervention in issues whose operation should be left to the market, should be decided by the requirements of life without affecting social order. The openness of planning here is understood as a piece of land that can be used for purposes that are not prohibited , for example, a piece of land in an urban area can be used as an office area, as well as a house... while not being allowed to build industrial production facilities, or not being allowed to make a market... It is thought that the openness of planning will increase the efficiency of general land use in society because it can be inferred that if each land user always uses his land with the highest efficiency without reducing the efficiency of land use of other users, it means that the efficiency of land use on a social scale will increase. Increasing the openness of land use planning also has the effect of reducing the opportunity for negative phenomena to arise in current land management because land users can change the purpose of using their land for purposes that are not prohibited and do not have to carry out procedures to convert land use purposes as at present.

3.6.2. Services supporting real estate business activities.

Consulting and brokerage activities play an important role in real estate business. Due to the current chaotic state of this activity, it is necessary to reorganize and rectify this activity. Real estate consulting and brokerage activities must be considered a profession like many other professions in society, so this activity must be subject to the regulation of relevant laws to ensure that this service develops in the right direction as well as to ensure the interests of the subjects participating in the real estate market. The solution proposed here is that those who participate in this activity

must be registered with the competent State agency. The State needs to issue legal documents to manage this service, which clearly stipulate the conditions that organizations and individuals participating in providing this service must have, such as business registration certificate, practice license, requirements on transaction location, regulations on fee ceilings, regulations on the responsibilities of these organizations and individuals when they cause damage to customers.

Real estate valuation services in the secondary market are an important service in the system of real estate business activities and are currently only developing at a very rudimentary level, only available in large real estate transaction centers but not really trusted by market participants. The State needs to make this activity a conditional business because valuation requires good experts, who are well-trained and have a lot of practical experience. Regulations on work procedures, on the responsibility of service providers for the quality of the services they provide, on the ceiling of service fees, etc. also need to be regulated to ensure that this activity develops in the right direction. Experience in developed countries shows that if well organized, these valuation centers can become very prestigious, supporting real estate business activities, not only providing services for transactions between individuals and organizations in society but also providing services for transactions in which the State is also a participant.

The new Law on Real Estate Business passed by the National Assembly and effective from January 1, 2007 has included these services as part of real estate service business activities and the requirements for service providers are similar to the proposals in this Thesis. The implementation of this Law depends on sub-law documents as well as the implementation of relevant agencies, but it is certain that it will contribute to making real estate business activities and accompanying services in Vietnam more transparent.

CONCLUDE

It can be said that from the first parts of the overall research on the issues of real estate business in general, to the analysis of the current situation of real estate business in Vietnam over the past ten years, to the proposal of solutions to promote this business in Vietnam, most of the issues and aspects of real estate business have been researched and mentioned. Some issues are only mentioned briefly, some are analyzed in detail depending on their importance in relation to the topic of the thesis.

The thesis mentioned basic concepts of real estate and real estate business, studied the main issues of real estate business such as market research, real estate valuation, capital mobilization for real estate business... Experience in developing real estate business in countries such as China and the US was also studied to supplement the practical proposals of the PhD student stated in the thesis.

Based on the scientific arguments of real estate business activities, and the current status of issues related to this activity in Vietnam, the thesis has deeply analyzed the current favorable and difficult factors, thereby boldly proposing a system of solutions to promote the development of real estate business activities in Vietnam. The solutions proposed first come from the characteristics of the legal system and business environment in Vietnam and then are the distillation of advantages in the management system, in the vivid practice of real estate business activities in developed countries, so the researcher hopes that these solutions are both highly feasible and can become a lever to promote the development of real estate business activities, meeting the increasing demand for real estate of society.

The key solutions proposed here include:

The main problems hindering the development of real estate business in Vietnam - 22

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