On the morning of April 21, the National Economics University coordinated with the Central Economic Committee and the Economic Committee of the National Assembly to co-organize a National Scientific Conference to assess Vietnam's economy in 2022 and prospects for 2023.
Speaking at the workshop, Prof. Dr. Pham Hong Chuong - President of the National Economics University assessed that Vietnam's economy in 2022 achieved outstanding growth right after a period of deep growth decline due to the Covid-19 pandemic. Inflation and the macro economy are basically stable.
However, some economic problems still exist, especially the soundness of the monetary and financial system has not been improved, which may negatively affect macroeconomic stability and economic growth.
“One of the bottlenecks closely related to the financial and monetary system is that the real estate market still has many risks of instability and has not been developed sustainably,” Mr. Chuong emphasized.
Prof. Dr. Pham Hong Chuong - President of National Economics University spoke at the Workshop.
Therefore, the Principal of the National Economics University believes that it is necessary to immediately resolve problems in the real estate market so that real estate does not become a factor causing high inflation and creating a "bubble" in the economy.
At the same time, it is necessary to synchronously implement many solutions to effectively control investment capital flows into the real estate market to prevent speculation; but also avoid causing shock, freezing the real estate market, causing negative impacts spreading to the system of credit institutions and social life.
Vietnam real estate prices are as expensive as gold
Sharing his views on the above issue, Prof. Dr. Hoang Van Cuong - Vice President of the National Economics University, Member of the 15th National Assembly , acknowledged that real estate is an extremely important component of the economy, real estate is the driving force of economic development when contributing 11% to the total GDP and has a direct spillover effect to 40 industries and professions in society.
Economic growth also directly affects the real estate market and vice versa, fluctuations in the real estate market always directly affect the general economy.
Playing such an important role in the economy, the real estate market is currently facing many problems: limited supply; capital is blocked in many channels; legal issues are still difficult to solve when there are many overlapping regulations, officials are afraid of responsibility so they push the issue of resolving violations, many businesses are being handled leading to loss of trust among the people, etc.
Professor Dr. Hoang Van Cuong said that in Vietnam, real estate is considered a type of asset with storage properties.
According to Mr. Hoang Van Cuong, supply is a very important issue. Currently, the demand for owning a house in Vietnam is very high, but the real estate supply is not enough because the mid-range real estate segment is very low, most of the market is luxury real estate.
"Why is it that in Vietnam, income is low, but real estate prices keep increasing?", Mr. Cuong asked.
Accordingly, the real estate analyst in Vietnam said that people buy and sell not only as a simple asset but also as a way to store for future generations.
Not to mention, among many investment channels, the psychology of the majority of investors in the market is that real estate is a safe haven, has great profitability and can be passed on to the next generations.
"Therefore, people hold real estate like gold, and real estate prices are as expensive as gold," said Mr. Cuong.
Identifying businesses that can issue bonds for support
Faced with the problems in the market, Prof. Dr. Hoang Van Cuong said that there need to be many synchronous solutions, the combination of many elements in the market to be able to handle them completely. Accordingly, the expert proposed 3 groups of solutions.
Legally, it is necessary to quickly end inspections and handle suspended projects to continue implementing and bringing products to market.
The legal problem solving committees need to be synchronized from the central to local levels, knowing how to select and apply appropriate legal regulations. Eliminate the answer "Follow the law", need a National Assembly Resolution for immediate action, immediately handle the shortcomings, not prolong the time waiting for the Law.
In terms of finance, it is necessary to strictly control speculative loans, loans over 50% to buy real estate. Only lend to businesses and investors within their liquidity capacity, self-control cash flow. Balance between businesses borrowing for investment and home buyers.
Second, convert corporate bonds into product convertible bonds. At the same time, the Government buys back bonds for important projects, not letting them fall into the hands of foreign investors.
Finally, businesses must restructure their investment projects to concentrate capital, thereby helping to reduce selling prices and increase mobilization of individual capital contributions.
National Scientific Conference to assess Vietnam's economy in 2022 and prospects for 2023.
Speaking more clearly about the capital market for real estate, Prof. Dr. To Trung Thanh - Head of the Department of Science Management, National Economics University, said that it is necessary to expand credit along with controlling credit quality, strengthening supervision of loan use, and limiting new bad debts.
At the same time, issue lending criteria for different types of real estate, limiting the concentration of credit on real estate projects and high-end housing.
However, Mr. Thanh highly appreciated the development of the corporate bond market, which has diversified investment capital flowing into the real estate market, helping to ease the burden on credit capital from banks.
However, for capital from corporate bond issuance, the expert still recommends early review of the financial status (including assets, debts, cash flow) of corporate bond issuing companies that are currently facing difficulties; based on the results of this review, identify bond issuing enterprises (mainly real estate developers) that can receive support.
It is especially necessary to strengthen monitoring and supervision of cases where enterprises and groups of enterprises are involved in issuing large volumes of corporate bonds .
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