Minister of Construction Tran Hong Minh has called for tighter oversight of developers’ financial capacity, project cash flows and implementation progress to protect homebuyers and enhance transparency in the real estate market.
On August 19, during a National Assembly session discussing amendments to the Real Estate Law, Minister of Construction Tran Hong Minh stressed the need for stricter oversight of developers’ financial capacity.
Minister of Construction Tran Hong Minh speaks at the meeting.
He said individuals and organizations undertaking real estate projects should be required to have equity equivalent to at least 15% of the required capital, with compliance subject to substantive supervision.
The Minister emphasized that developers’ financial capacity should be verified through credit mechanisms and monitored by banks to ensure that declared capital reflects their actual ability to implement projects.
Banks responsible for verifying financial capacity and disbursing funds should also be held accountable, he said.
Credit institutions have an important role in monitoring project cash flows to protect homebuyers’ interests and minimize financial risks.
The Minister also highlighted the application of electronic identification in real estate management.
"The Ministry has basically completed the database. Once localities fully submit their data, electronic identification of houses and real estate will help enhance transparency in the real estate market," Minister Tran Hong Minh said.
Regarding conditions for transferring real estate projects, the Minister said developers must fulfill all financial obligations before transferring projects to other investors.
Projects must also have infrastructure developed in accordance with approved planning and capable of meeting residents’ needs.
Developers should only be allowed to collect deposits once projects have met all required conditions. Funds paid by homebuyers must also be strictly managed throughout project implementation.
The Minister stressed that project cash flows should be closely monitored to ensure developers fulfill their responsibilities, including completing procedures for property ownership certificates and safeguarding homebuyers’ legitimate rights and interests.