(Construction) – Recently, the State Bank of Vietnam (SBV) coordinated with the Ministry of Construction to organize a Credit Conference for Real Estate and Social Housing Development. At the Conference, Mr. Dennis Ng Teck Yow, General Director of Novaland Group (NVL) shared about its current biggest difficulties.
Speaking at the Conference, Mr. Dennis Ng Teck Yow, General Director of NVL expressed his thanks to the drastic participation of authorities at all levels in resolving legal difficulties with ongoing enterprise projects as well as the important significance of the contents discussed at the Conference. Regarding Novaland, Mr. Dennis Ng Teck Yow said that the biggest difficulty of the business, accounted for 80%, was legal issues from 4 large project clusters.
|The State Bank of Vietnam (SBV) coordinated with the Ministry of Construction to organize a Credit Conference for Real Estate and Social Housing Development|
Regarding difficulties and obstacles in accessing credit, Novaland representative said that in 2023, the State Bank had issued many instructions to maximally support the business community in accessing capital. However, for Novaland, legality is a key factor because the Company faced large receivables from sold products, but if it cannot be handled legally, the bank will not release the temporarily locked money and at the same time, it is a barrier for banks to disburse new capital as well as continue financing for home buyers.
|Mr. Dennis Ng Teck Yow - General Director of NVL speaks at the event|
Mr. Dennis Ng Teck Yow affirmed that legal difficulties accounted for 80% of the current difficulties of real estate businesses and caused many negative consequences. If not resolved promptly, the number of businesses dissolved and bankrupted in the following months could be increased.
Based on the above problems and difficulties, Novaland Group on behalf of many businesses in the same industry proposed many solutions to seriously implement the Prime Minister's direction: creating impetus for growth and promotion of the real estate market.
Speaking at the Conference, Novaland Chief Financial Manager Duong Van Bac said that the Company has passed the most difficult time and has gone 80% of the restructure way.
In the first half of this year, Novaland had restructured comprehensively. The company rearranged and prioritised projects that were about to be completed to hand over products to customers and choosed projects with high liquidity to speed up legalization to catch up with the recovery of the market.
By Khanh Phuong