'Private business community is empowered to continue to break through'

What do you think about the determination of senior leaders in promoting the private economy to become an important driving force of the economy?

- The entire Party and Government are demonstrating great determination and will to turn the private economic sector into one of the leading important pillars of the national economy, enhancing Vietnam's position in the international arena.

With a strong policy and message, demonstrating a broad vision and steadfast will, grasping the trends of the times from the highest leader of the Party, the private business community is given more confidence and resilience to overcome all barriers, seize opportunities, further enhance the spirit of initiative, innovation, pioneering and the mindset of daring to commit, daring to think big - do big, a desire to contribute to break through and continue to strongly contribute to a strong and prosperous Vietnam.

According to you, what specific solutions does the Government need to have to support real estate businesses to become truly large and ready to participate in major projects of the country?

- The real estate market is considered the "backbone" of the economy because it is closely related and has a spillover effect on about 40 key industries, creating millions of direct and indirect jobs. According to data from the General Statistics Office, the average contribution of the construction and real estate industry to the country's total GDP in recent years is about 11%. Therefore, unblocking and bringing real estate back to the growth and sustainable development trajectory is one of the important factors contributing to the realization of the double-digit economic growth target in the coming period.

Novaland Group wishes to propose some solutions to support the recovery and strong growth, sustainable development of real estate enterprises, promoting the general development of the private economic sector:

Firstly, it is to thoroughly remove long-standing legal obstacles and speed up the legal process. Currently, the time to complete the project's legal procedures is prolonged, many obstacles are not thoroughly resolved, causing project development costs to increase, making product prices far exceed reality, real estate businesses have to bear high financial costs, leading to narrowing profit margins, even losses in many projects. Handling and removing obstacles, standardizing legal procedures and approval stages, and speeding up the project's legal process will be factors that help reduce product costs, and at the same time, not only solve difficulties in debt and cash flow for businesses, but also open up other sources of capital, prevent waste of assets and social resources. Only when legal obstacles are thoroughly resolved, can real estate businesses recover properly, develop strongly and contribute to the overall breakthrough of the private economic sector.

Second, it is to create opportunities for real estate enterprises to participate in the infrastructure development strategy and build satellite cities on the outskirts of major cities. The merger of provinces and cities in the coming time will open up new development space for the real estate market. The adjusted provincial boundaries will create new urban development spaces that are larger than before, creating conditions for new projects to form, stimulating population movement and investment demand. In that new context, localities need to have careful planning preparation, promote strategic cooperation, create conditions for real estate enterprises with sufficient capacity, experience and vision to participate in building and developing infrastructure, developing satellite cities around major cities. At that time, with the preparation of new land funds at low cost, it will help reduce product costs, serving the common goal of reasonable housing prices so that many people have the opportunity to access housing suitable for their income.

Third, there needs to be a more reasonable method of land valuation and land use fee determination. In the structure of real estate costs, land prices account for an increasingly large proportion. Therefore, to increase supply and reduce housing prices, land valuation and land use fee calculation need to have a more reasonable method, instead of applying surplus according to current market prices, which will push up long-term land costs rapidly, increasing input costs, thereby increasing selling prices. It is proposed that there should be a reasonable land valuation policy for each area to help investors more closely control input costs, thereby limiting arising costs, creating opportunities for people to access more reasonably priced real estate.

Thank you very much!

The sharing from Mr. Duong Van Bac - General Director of Novaland provided an insight into the challenges and opportunities facing the private sector. Policy reform, reducing administrative procedures and creating a favorable business environment are key factors to fully exploit the potential of the private economy. Thereby, not only helping businesses develop but also contributing to improving the competitiveness of the national economy. Close cooperation between the State and enterprises will be a solid foundation for a prosperous Vietnam, where the private economy truly becomes the main driving force for the overall development of the country.

Quynh Chi (performed)

Source: https://baophapluat.vn/cong-dong-doanh-nghiep-tu-nhan-duoc-tiep-them-suc-bat-de-tiep-tuc-but-pha-post544050.html