A comprehensive set of solutions is needed.

Reporter: Today, February 17th, the Prime Minister is expected to chair a national conference on promoting the healthy and sustainable development of the real estate market. Could you assess the importance of this conference?

- Professor Hoang Van Cuong: The real estate market is facing many difficulties, most clearly demonstrated by the fact that almost all transactions are "frozen". When the real estate market is "frozen," it will lead to the stagnation and development of numerous other economic sectors. Even the financial sector is hampered by a huge amount of capital "tied up" in real estate projects.

Real estate businesses expect the National Conference on Promoting a Healthy and Sustainable Real Estate Market to provide practical solutions to address challenges. (Photo: HOANG TRIEU)

Taking action to remove bottlenecks in the real estate sector is crucial because this sector is a link in the economic system. Removing obstacles in the real estate sector means removing obstacles in the economy and the financial system, thereby promoting growth. Therefore, the nationwide online conference to promote the healthy and sustainable development of the real estate market, chaired by the Prime Minister, is essential to find common ground and truly effective solutions for promoting and operating the real estate market and the financial system.

What are the reasons behind the current stagnation in the real estate market, sir?

- The main reason for the stagnation in the real estate market is the shortage of financial resources and support. In previous years, real estate businesses relied heavily on bond issuance. However, after incidents involving several bond-issuing companies with irregularities, the room for businesses to raise resources through bonds has almost disappeared. The situation where many businesses are due to repay their bonds further increases the pressure on capital.

In this context, banks have the responsibility of ensuring the safety of the system, so their outstanding loans to the real estate sector must also be controlled, leading to financial difficulties for businesses in this sector.

What solutions does he suggest to help businesses and the entire real estate market get back up and running?

- The most important thing is to unlock resources. Unlocking resources must be done in two ways. Firstly, we must discuss solutions to unlock credit capital and resources from bonds. Secondly, real estate businesses themselves must adjust and restructure to balance their resources. For example, they should boldly cut back on investments that are not truly effective and are draining cash flow, and focus on projects and products with high liquidity to generate cash flow.

In addition, it is necessary to identify obstacles related to mechanisms, policies, and laws, and then propose effective solutions to overcome them.

In the long term, what impact will the amended Housing Law and the amended Real Estate Business Law have on the real estate market?

- Clearly, these two laws aim to prevent the real estate market from overheating and to foster the formation of professional real estate investors. By preventing overheated real estate development and promoting professional investment activities, the likelihood of market stability will be higher.

In addition, the amended Housing Law and the amended Real Estate Business Law also aim to prevent abuses and exploitation in real estate business activities such as "ghost" projects or projects without sufficient legal basis, rumors, creating artificial bubbles and land price surges in the market...

With the promulgation of the amended Housing Law and the amended Real Estate Business Law, it is hoped that we will have a healthier, more stable, and more professional real estate market.

Prior to the National Conference on Promoting a Healthy and Sustainable Real Estate Market organized by the Government , the Government and the Prime Minister had issued many directives related to the real estate market, but it seems that not many issues have been resolved?

- In Prime Minister's Directive 03/CT-TTg on urging the implementation of key tasks after the Lunar New Year holiday of 2023, the Prime Minister also assigned responsibility to localities, ministries, and sectors to remove legal obstacles to the real estate market. At the same time, he directed the State Bank of Vietnam to consider opening up credit sources to support the real estate sector.

Clearly, the Prime Minister has a very clear understanding of the role and significance of the recovery and development of the real estate market for economic growth. I believe the Prime Minister's directive is very timely and appropriate to the current needs of the real estate sector.

(*) See the Nguoi Lao Dong newspaper from the issue dated February 15th.

Source: https://nld.com.vn/kinh-te/go-kho-cho-bat-dong-san-cach-nao-can-nhieu-giai-phap-dong-bo-2023021621395759.htm