Reporter: Today, February 17, the Prime Minister is expected to chair a national conference to promote the healthy and sustainable development of the real estate market. Can you assess the importance of this conference?
- Prof. Dr. HOANG VAN CUONG: The real estate market is facing many difficulties, most clearly shown by the fact that almost all transactions are "frozen". When the real estate market is "frozen", it will lead to the consequence that a series of other economic sectors will stagnate and not develop. Even the financial sector is blocked by a huge amount of capital "buried" in real estate projects.
Real estate businesses expect the National Conference to promote the healthy and sustainable development of the real estate market to provide practical solutions. Photo: HOANG TRIEU
It is very important that we take action to remove bottlenecks in the real estate sector because this sector is a link in the economic system. Removing bottlenecks in real estate means removing bottlenecks in the economy and the entire financial system, thereby promoting growth. Therefore, the National Online Conference to promote the healthy and sustainable development of the real estate market chaired by the Prime Minister is extremely necessary to find a common voice as well as truly effective solutions to promote and operate the real estate market and the financial system.
What is the reason for the current real estate market congestion, sir?
- The main reason for the real estate market being stagnant is the lack of financial resources and financial support. In previous years, the resources of real estate enterprises relied heavily on bond capital. However, after the incident involving a number of enterprises issuing bonds with violations, the room for mobilizing resources of enterprises through bonds is almost gone. The situation of many enterprises having to repay bond debts has further increased the pressure on capital.
In that context, banks must perform the task of ensuring system safety, so bank loans for the real estate sector must also be controlled, leading to financial difficulties for businesses in this sector.
What solutions do you suggest to help businesses as well as the entire real estate market operate again?
- The most important thing is to unblock resources. Unblocking resources must go in both directions. Firstly, we must discuss solutions to unblock credit capital and resources from bonds. Secondly, real estate businesses themselves must also adjust and restructure themselves to rebalance resources. For example, boldly cut out some ineffective investments that are consuming cash flow to focus on projects and products with liquidity to create cash flow.
Besides, it is necessary to point out the problems in mechanisms, policies and laws, thereby proposing effective solutions.
In the long term, how will the Housing Law (amended) and the Real Estate Business Law (amended) impact the real estate market?
- Obviously, these two laws aim to prevent the real estate market from developing too quickly, and aim to form professional real estate investors. When the real estate market is not overheated and professional investment activities are promoted, the market stability will be higher.
In addition, the Housing Law (amended) and the Real Estate Business Law (amended) also aim to prevent abusive and exploitative behaviors in real estate business activities such as "ghost" projects or projects without sufficient legal basis, rumors, creating virtual waves, virtual land fever in the market...
When the Housing Law (amended) and the Real Estate Business Law (amended) are issued, we hope that we will have a more healthy, stable and professional real estate market.
Before the National Conference on Promoting the Healthy and Sustainable Development of the Real Estate Market organized by the Government took place, the Government and the Prime Minister had issued many directives related to the real estate market, but it seemed that they had not resolved many issues?
- In Directive 03/CT-TTg of the Prime Minister on urging the implementation of key tasks after the 2023 Lunar New Year holiday, the Prime Minister also assigned responsibilities to localities, ministries and branches to remove legal difficulties for the real estate market. At the same time, he also directed the State Bank to consider unblocking credit sources to support real estate.
Obviously, the Prime Minister has clearly recognized the role and significance of the recovery and development of the real estate market for economic growth. I think the Prime Minister's direction is very timely and meets the current requirements of the real estate sector.
(*) See Lao Dong Newspaper from issue dated February 15
Source: https://nld.com.vn/kinh-te/go-kho-cho-bat-dong-san-cach-nao-can-nhieu-giai-phap-dong-bo-2023021621395759.htm
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