$30 billion is "buried" in real estate.

Since the fourth quarter of 2022, the number of newly established businesses has been too low. Meanwhile, existing businesses have had to scale back their investment and production activities, streamline their organizational structure and workforce as much as possible. Some businesses have even had to halt or suspend investment and construction of unfinished projects; stop implementing new projects; and stop issuing shares to increase capital...

Real estate brokerage firms also suffered heavy losses. Many companies lacked cash flow, had to close early for the Lunar New Year, cut staff, reduced salaries, and closed offices. In January 2023, many owners of small and medium-sized brokerage firms had to sell personal assets to stay afloat. A series of manufacturing and trading businesses, factories, and workshops in more than 30 related industries also had to cease operations, leaving millions unemployed due to the direct impact of delayed payments from developers.

According to VNREA leaders, the number of real estate projects currently underway nationwide that have had to be temporarily suspended amounts to thousands, with an investment value of approximately 800,000 billion VND, equivalent to about 30 billion USD.

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

Specifically, regarding capital sources, VNREA proposed that the State Bank of Vietnam accelerate the injection of capital into the economy , including real estate development, to ensure projects are implemented seamlessly and reduce pressure on the market. However, it is necessary to carefully control the flow of funds, focusing on appropriate segments and priority projects. For businesses facing difficulties, the State Bank of Vietnam should facilitate the extension or postponement of loans due, similar to the period during the COVID-19 pandemic. In cases where businesses are reclassified into a worse bad debt category, loans should be restructured; new interest rates should not be applied to old loans. It should also be noted that preferential capital support should be provided to businesses developing affordable commercial housing projects, social housing, and housing for workers and low-income earners.

Regarding corporate bonds, policies are needed to support issuing companies in case of difficulties, provided they can demonstrate that the funds raised from the bonds are used for their intended purpose. Simultaneously, policies are needed to develop new capital channels such as real estate investment funds and housing funds. Alongside this, policies are required to support people who need to borrow money to buy houses, making it easier for them to access capital, especially low-income groups, workers, and laborers.

Legally, VNREA recommends accelerating the amendment of laws to stabilize and develop the market in the long term. In particular, stronger policies are needed to promote social housing, creating market-appropriate products, stimulating transactions, and restarting the production and business cycle for the entire economy.

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