Sustainable double-digit growth, what is the solution?

National Assembly delegates proposed a mechanism to release nearly 6 million billion VND from more than 2,200 stalled and stuck real estate projects. In the photo: many undeveloped plots of land in Thanh Ha urban area ( Hanoi ) - Photo: THANH CHUNG

Speaking at the National Assembly's group discussion session on May 23 about the socio -economic situation, state budget, thrift practice, and anti-waste, Prime Minister Pham Minh Chinh pointed out the difficult global context, with world institutions and major countries all predicting lower economic growth than expected.

He said the target of 8% and double-digit growth in the coming years is "against the trend", so what needs to be done to achieve the target?

"Unlocking" 6 trillion VND stuck in real estate

At the group discussion session, National Assembly delegates raised the problem and suggested many solutions. Delegate Hoang Van Cuong (Hanoi) assessed that Vietnam in 2024 will achieve many positive results, becoming the 32nd largest economy in the world and the 4th largest in Southeast Asia.

Highest growth in the region, budget revenue in the first 4 months of 2025 reached 944,100 billion VND (48% of the estimate), creating large room for expansionary fiscal policy.

However, Mr. Cuong frankly acknowledged that economic growth in 2025 must depend on existing momentum for short-term goals. Because it is difficult to achieve 100% disbursement of public investment, it is necessary to encourage private investment to promote growth.

According to Mr. Cuong, the principle of economic growth through capital and labor shows that the sector that attracts a lot of capital will grow quickly. Therefore, strong investment in real estate will promote rapid economic growth, similar to China's period of double-digit growth.

Mr. Cuong proposed that Vietnam should accept "hot" growth through real estate development in the period of 2025 - 2026, especially when the current market is lacking supply, high demand leads to high prices due to scarcity, not a bubble.

"If we expand the development of the real estate market, we will balance supply and not fear the situation of hot growth, excess goods, and inventory like in China. We need to encourage real estate growth during this period," said Mr. Cuong.

Mr. Cuong cited statistics from the Ministry of Finance showing that nationwide there are 2,212 ongoing projects that have had to stop due to problems, with a total investment capital of nearly 6 million billion VND, using nearly 350,000 hectares of land.

The National Assembly's resolution has allowed the removal of obstacles for real estate projects in Ho Chi Minh City, Da Nang, and Khanh Hoa, but has not yet allowed widespread application in other localities.

Therefore, Mr. Cuong suggested that the mechanism for handling these problems be widely applied to real estate projects in other localities to free up this resource, which will contribute greatly to growth.

Sharing the same view on promoting investment, delegate Thach Phuoc Binh (Tra Vinh) proposed disbursing public investment capital on schedule, decentralizing authority to localities, focusing on strategic infrastructure (Can Gio port, North-South railway, expressway, logistics).

At the same time, selectively attract FDI, prioritize technology transfer projects, increase added value and human resource training. Establish a national one-stop investment portal to shorten time and costs for investors.

Producing automobile tires for export at the factory of Danang Rubber Joint Stock Company - Photo: TAN LUC

Remove procedures, create business environment

Along with promoting investment projects, unblocking capital flows and removing backlog projects, many delegates hope to have policies to remove obstacles and support businesses. Delegate Ha Sy Dong (Quang Tri) is concerned that US President Donald Trump's tax policy will affect the 8% growth target this year.

Although the Government has prepared carefully, Mr. Dong said that more efforts are needed to maintain the growth target, while recommending policies to support businesses and remove investment difficulties.

Mr. Dong proposed that the National Assembly allow the Prime Minister to decide to exempt bidding procedures, allowing the appointment of public procurement contractors and investors to accelerate the improvement of the trade balance. In addition, transparent control of the origin of goods will create trust for partners.

Review technical barriers, non-tariff barriers... to be able to achieve a 10% reciprocal tax negotiation level, ensuring the growth target of 8% this year.

Delegate Dong also recommended the need to improve the business environment - a decisive factor for growth. He was concerned that despite the resolution promoting science, technology, law and the private economy, businesses were still facing many problems.

The Vietnam Federation of Commerce and Industry's report on the Provincial Competitiveness Index and the flow of business laws shows that Vietnam's current land use project investment faces many cumbersome procedures like a "forest of procedures, mountains of procedures", from planning application to project acceptance.

"With such a "forest of procedures", we cannot mobilize enough private investment for growth targets. According to calculations, the investment rate must be over 40% to maintain high growth.

How can we invest so much if investment procedures are delayed and prolonged? In the real estate sector, procedures are too prolonged, causing projects to be suspended, slowing down housing supply and causing housing prices to increase sharply in recent times," said Mr. Dong.

Delegate Huynh Thanh Phuong (Can Tho) noted the need to promote green, sustainable agriculture with policies to support high-tech, low-emission production. Along with the policy of developing 1 million hectares of high-quality rice, it is necessary to invest in the aquaculture industry with a national technology transformation program, building a seafood brand with a competitive strategy, focusing on removing the yellow card.

"Promote tourism development with the motto of unique products, professional services, competitive prices, safe and friendly destinations, expanded visa exemption policy, convenient visa application and longer stay, especially priority for scientists, artists, athletes...", delegate Phuong proposed solutions.

* Delegate Nguyen Minh Duc (HCMC):

Quick resolution for stuck projects

General Secretary To Lam, working with the Central Internal Affairs Committee, said that if waste is not thoroughly combated and thrift is not practiced, it will be very difficult to achieve the target of 8% economic growth.

In fact, we need to frankly acknowledge that some projects and works that were invested in many years ago are now behind schedule and it is unknown when they will reach the finish line.

I suggest that we need to strengthen inspection and supervision to find the cause and have solutions. If there are problems in administrative procedures, we need to adjust them to resolve them. If this situation continues, it will waste time, money, human resources and material resources.

This requires boldly facing the truth, proposing clear solutions, and having a roadmap to find a solution.

In some places, public assets, especially surplus headquarters after the reorganization of agencies, are not used, leading to waste. In the upcoming key tasks, it is necessary to specifically request localities to have a list of surplus headquarters, calculate the conversion of functions to avoid waste.

* Delegate Do Duc Hien (HCMC):

Government levels closer to the people are more decentralized

In addition to restructuring the apparatus and decentralizing power, one of the important tasks to be done in the coming time is to continue cutting administrative procedures and business conditions to reduce compliance costs for people and businesses.

Currently, the Government requires ministries to review and adjust regulations so that the government level closer to the people can be more decentralized and work can be handled more conveniently.

This policy is important, I hope that in the coming time, the Government will promptly issue decrees.

Previously, every year the Government had resolutions on simplifying administrative procedures and reducing business conditions, but many proposed contents were not implemented or were not effective.

It is necessary to review the issued resolutions on specialized inspection, simplifying administrative procedures, and improving the investment and business environment to see what has been done and what has not been done, and on that basis set specific goals.

For example, the principle that each item must be subject to the management of a specialized agency was set out in 2019, but this decree has not yet been issued. There are items that are still subject to the management of many agencies, even with different conditions and standards. This time, there must be a specific assessment before promulgation and implementation.

Shift from "red book thinking" to "cash flow thinking"

Delegate Nguyen Nhu So (Bac Ninh) said that fiscal and monetary policies need to truly become "growth levers".

In recent times, the Government has made great efforts with policies such as Decree 82/2025 (tax and land rent extension), Decree 31/2022 (2% interest rate support)... However, the implementation has been very difficult. For example, the 2% interest rate support package was once expected to be a "lifesaver" but after nearly two years, the disbursement rate has been less than 5%.

"In reality, many small and medium-sized enterprises, which are the "backbone" of the economy, are eliminated from the game because they do not have audited financial statements or qualified collateral. There are policies and money, but businesses cannot access them. That is a failure in implementation.

Therefore, in addition to continuing to improve policies, it is more urgent to comprehensively reform the implementation mechanism so that capital flows to the right places," Mr. So suggested.

Regarding the solution, according to Mr. So, it is necessary to reform the credit assessment thinking to suit each type of enterprise, shifting from "red book thinking" to "cash flow thinking", assessing debt repayment capacity based on business data, tax payment history, actual operating efficiency instead of just looking at mortgaged assets.

Assign mandatory disbursement targets to each credit institution, similar to assigning production and business plans with evaluation criteria of "who has the money reached and how effective it is". Urgently establish an independent and public monitoring system with a set of transparent measurement indicators.

Import and export container goods at Cat Lai port - Photo: TU TRUNG

Reduce regular expenditure, increase development investment expenditure

Presenting solutions to promote growth, Prime Minister Pham Minh Chinh said that this year, institutional obstacles will be basically removed to create competitive advantages. Human resource breakthroughs will be promoted to improve labor productivity, vocational skills and professional qualifications with a world-class workforce when deeply integrated.

At the same time, promote strategic infrastructure breakthroughs to reduce the currently very high logistics costs to increase the competitiveness of goods in the market. Synchronously invest in all 5 modes of transport including highways with the completion of 3,000km of highways; deploy a railway system connecting aviation and maritime with cheaper costs and continuous operation.

Upgrade the railway system, railways connecting with China such as Lao Cai - Hanoi - Hai Phong to open to Central Asia and Europe; urban railways... Promote inland waterways, aviation projects, world-class airports, maritime routes with seaports and large fleets.

The Prime Minister also said that the Politburo recently passed four resolutions including promoting science and technology, innovation, digital transformation; deep international integration in the new situation; building and enforcing laws, institutional reform; and developing the private economy, forming a quartet of strategies for development.

"The Government will effectively implement these resolutions, promote growth drivers, renew old growth drivers and promote new growth drivers. Including public investment, private investment, and FDI attraction.

"Promoting exports based on diversifying markets, products, and supply chains, actively negotiating with the US to ensure core interests with a calm, non-confrontational spirit, dialogue, and listening patiently, persuasively, and being ready to resolve issues that partners are interested in, protecting core interests," he said.

With the consumption motivation, we will focus on fiscal policy to reduce taxes and fees, reduce input costs of enterprises based on institutional breakthroughs, and cut administrative procedures to the maximum. Increase revenue, reduce expenditure, save expenditure, collect the right amount of revenue, collect on time, reduce regular expenditure, increase development investment expenditure, promote savings, and cut expenditure on unnecessary activities.

Will remove thousands of projects

According to the Prime Minister, the implementation of a two-tier government will be an important transformation, instead of licensing, there will be post-inspection, inspection, supervision, and state management. Resolutely cut down on administrative procedures, shifting from a passive to an active state with the spirit of decentralization and allocation of resources, increasing enforcement capacity and inspection and supervision.

Or with 2,200 projects with a total capital of about 235 billion USD, accounting for 50% of GDP, it is necessary to focus on resolving them with the spirit of not legitimizing the wrong, but accepting "painful dissection" and losing money to gain lessons for the future.

Back to topic

NGOC AN - THANH CHUNG - TIEN LONG

Source: https://tuoitre.vn/tang-truong-2-con-so-ben-vung-giai-phap-nao-20250524083008227.htm