30 billion USD is "buried" in real estate

From the fourth quarter of 2022, the number of newly established enterprises is too small. Meanwhile, enterprises that are still operating must reduce the scale of investment in production and business, streamline their apparatus and workforce. Enterprises even have to stop or postpone investment activities, construction of unfinished projects; stop implementing new projects; stop issuing shares to increase capital...

Real estate brokerage businesses also suffered heavy losses. Many units lacked cash flow, had to close early for Tet, cut staff, reduce salaries and close offices. In January 2023, many small and medium-sized brokerage business owners had to sell personal assets to maintain operations. A series of manufacturing - trading enterprises, factories and workshops in more than 30 related industries also had to stop operating, millions of workers were unemployed due to the direct impact of the slow payment situation of investors.

According to the leader of VNREA, the number of real estate projects being implemented nationwide but having to be temporarily suspended is up to thousands of projects, with an investment value of about 800,000 billion VND, equivalent to about 30 billion USD.

VNREA has proposed many solutions to promote the healthy and sustainable development of the real estate market.

Specifically, in terms of capital, VNREA proposed that the State Bank accelerate the injection of capital into the economy , including real estate development activities, so that projects can be implemented seamlessly, reducing pressure on the market. However, it is necessary to control cash flow well, focusing on appropriate segments and priority projects. For businesses facing difficulties, the State Bank should create conditions to extend and postpone loans due as during the COVID-19 pandemic. In case businesses are transferred to a worse debt group, they should be restored, and new interest rates should not be applied to old loans. Note that preferential capital support is provided for businesses developing projects of low-cost commercial housing, social housing, housing for workers, and low-income people.

Regarding the story of corporate bonds, there needs to be a policy to support issuing enterprises in case of difficulties if they can prove that they are using the bond money for the right purpose. At the same time, there needs to be a policy to develop new capital channels such as real estate investment funds, housing funds, etc. At the same time, there needs to be a support policy so that people who need to borrow money to buy houses can easily access capital, especially low-income groups, workers, and laborers.

Regarding the legal aspect, VNREA recommends speeding up the amendment of laws to stabilize and develop the market in the long term. In particular, there needs to be stronger policies to promote social housing to create products suitable for the market, stimulate transactions, and start the production and business cycle for the entire economy.

Source: https://nld.com.vn/kinh-te/30-ti-usd-dang-chon-trong-bat-dong-san-20230216214105255.htm