Group solutions to increase the profitability of enterprises

There are three ways that researcher suggest to increase the profitability of real estate firms.

Diversify the list of real estate and services: Diversification the type of department to suit a wide variety of subjects by expanding the range of goods for low income groups, development many services besides providing products like construction design services besides selling land or selling unfinished houses and focus on the construction of affordable houses and apartments to meet the payment capacity of customers.

Cut down the costs: Cost savings of construction by supervising promptly expenditures payment in order to avoid wasting capital as well as continuously monitor the production and the use of capital of each project. About labor cost, it should allocate labor scientifically to raise labor productivity, make sure that reduce cost but still adapt technical requirement.

Improve product quality for construction: Enterprises should establish a "Research and Development" department with the task of exploring and learning the techniques and architectural styles of countries in the world. Based on that designing new architectural styles, the enterprise can ensure better construction and better serve the needs of customers. Managers should manage the process of construction in accordance with the design, process under the inspection and supervision of technicians. Lastly, businesses must always fulfill their commitments in terms of quality and time. This not only contributes to customer satisfaction but also accelerates the process of capital flow, increasing business efficiency.

5.4.3 Group solutions to increase capital mobilization capital of enterprises

Firms can increase in loan amount through some ways like issuance of bonds - the company can call for capital from many potential financial sources such as investment funds, companies and insurance groups, finance where legal procedures are not too complicated. (Quan & Ly, 2014) This solution helps businesses not have to mortgage their assets, can apply flexible interest rates as well as multiple interest and principal options, and make bond financing cheaper than other loans. Other is using partner's capital, customers and extending the payment period with customers to create capital. This item does not have to pay the interest that is already in the fund of the business. Besides that, it is the mobilization of capital from customers, investors with the agreement to deposit money in advance. For example, signing contracts to sell preferential apartments before the construction of apartment building and borrow money

from customers with interest rates equivalent to the interest rate of mobilization of banks. This solution helps both businesses and customers have profit because the company can mobilize cheap capital and customers can buy cheap apartments. In addition, an enterprise can also borrow foreign capital in the form of a foreign loan guaranteed by the Government for short-term loans and government guarantees for medium and long short-term loans. However, the business must be responsible for repaying the debt to the foreign party in order to avoid affecting the reputation of the Government.

Some method help enterprises use efficient loans. Through the sources of capital borrowing, enterprises must determine the capital objective to borrow sufficient capital for business activities, avoid idle for loans. The organization shall make good use of the existing loans and capital, closely manage the enterprises' payment and payment capability. Enterprises need to promote communication about their products and services by participating in trade fairs to introduce and promote businesses and products, donate to develop the brand of the business, organize real estate tours for guests who have demand ... Since then, the number of customers to businesses increased, ensuring the target monthly of the company while ensuring the safety of loan amount.

There are some opportunities of real estate businesses in the context of international economic integration.

Firstly, the legal system of real estate is getting better and better. Many laws and regulations related to the real estate sector were issued and amended such as the Housing Law, Real Estate Business Law, Investment Law.... In particular, the Land Law and Bidding Law will come into force on 1-7-2014. Two other laws also have a very important impact on the real estate is the Housing Law, Real Estate Business Law (amended) is also approved by the XIII National Assembly in its 8th session on October 20 - 2014. In general, these laws and regulations are contributing to create favorable conditions and expectations for investors, especially investors who are strong to minimize the weak and still disturbing market players.

Secondly, demand for real estate tends to increase. According to the State Bank of Vietnam's Circular No. 11/2013 / TT-NHNN guiding the implementation of the 30 trillion dong credit package under the Government's Resolution No. 02 / NQ-CP dated 7^th January 2013, State Bank disbursed a refinance loan of about 30.000 billion VND within 36 months from the effective date of the Circular. This credit package creates favorable conditions for cadres and civil servants of government agencies, socio-political organizations, public units and armed forces to receive salaries from the budget. The state, low-income people belonging to

non-public units, economic cooperatives, people who are laid off by the regime, freelance traders, individual business households ... have money to buy houses with low interest rates.

On 21/8/2014, the Government issued Resolution No. 61 / NQ-CP on amending and supplementing Resolution No. 02 / NQ-CP dated 7 January 2013 by the Government.

Accordingly, the object of the credit package is extended, the loan period also lasts from 10 years to 15 years. These adjustments have continued to increase the demand for housing, thereby removing difficulties, supporting the market and contributing to solving bad debts for real estate enterprises. According to the Ministry of Construction, this work is not only aimed at attracting foreign capital into Vietnam, but also contributing to the development of the domestic real estate market, solving inventory, bad debts in real estate, copper At the same time, increasing aggregate demand for the real estate market and not negatively affecting the segment of the housing market for middle-income, low income people in the country.

Lastly, interest rates on loans decreased. Resolution No. 02 / NQ-CP remove difficulties for production and business, market support and deal with bad debts mentioned the continuation of lowering the credit interest rate to the level reduction of inflation, focus on implementing practical and effective measures to accelerate the disbursement of investment for projects and business behavior in economic activities. Low interest rates have always been the incentive for businesses to expand their investments, develop their businesses and thereby stimulate growth in the overall economy.

One of challenges is the legal framework is not complete. In the opinion of many experts, although the legal framework of the real estate market has been gradually improved, amended and supplemented, but there are many problems that need to be amended and supplemented.

For example, the Decree 69/2009 / ND-CP issued on September 13, 2009 stipulates that the State collects land use levies from enterprises at market prices. The Land Law 2013 also provides for compensation for landowners at market prices for housing projects. However, the market price is a general concept so when compensating, both the business and the landowner are struggling to determine the market price. Therefore, leading to the congestion in compensation, clearance and payment. Another unreasonable part of the tax policy is Circular 161/2009 / TT-BTC on personal income tax stipulates 2% for each transfer of capital contribution contract, house purchase contract formed in future. It is called personal income, but the revenue is in fact a fixed return on transfer revenue, no exemption, no reliance on real income, the buyer still losses. Sales taxes on business cash flow, investments in unfinished products in the production of goods, have a strong influence on the investment of social capital

in the market. The high personal income tax rates and unreasonable revenues are one of the main reasons for the recent market freeze. Therefore, enterprises will face the same legal shortcomings until the State introduces the amendment and supplementation of regulations to suit real estate market in the future.

From all of that situation, I suggest some recommendation to Government and relevant ministries to increase ROE as well as improving the legal system in real estate industry:

(1) To stimulate and increase public investment, especially investment in infrastructure.

This is the foundation for enhancing the attractiveness of real estate goods in the market. It should be quickly solving the complex of unfinished infrastructure and actively promoting urban transport projects, especially the subways and overhead trains.

(2) To recommend the use of the budget for the construction of the offices of the ministries, the construction of public-duty houses and the policy housing through the acquisition of current works of enterprises.

(3) Continuing administrative reform of the "one door" principle at Departments of the provincial or municipal Departments to shorten the half of the time for appraisal and approval of planning, customization of detailed planning and design of projects in stock, unfinished construction and conversion from commercial housing to social housing.

(4) Committees of provinces, cities and Department of Local Planning and Construction accelerate the zoning planning so that enterprises can implement the project, propose changes to the planning and adjust the project for in line with market reality.

(5) Considering the deferral and reduction of VAT for businesses generally have large inventories related to the real estate and building materials, provided that the product originated in domestic production: Corporate income tax reduced by 15%, VAT output decreased by 7.5%

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