"Inflating prices and creating waves makes land trading almost exclusively happen among speculators"

On the morning of October 21, at Dien Hong Hall, the National Assembly held a plenary session of the 8th session of the 15th National Assembly. Presenting the Report on the verification of the results of the implementation of the socio-economic development plan for 2024 and the projected socio-economic development plan for 2025, Chairman of the National Assembly's Economic Committee Vu Hong Thanh said that, in addition to the achieved results, the socio-economic situation in 2024 still faces a number of difficulties and challenges.

Accordingly, macroeconomic stability still has potential risks, achieving higher-than-expected growth has not fully reflected the potential difficulties in the economy such as dependence on exports and public investment. Emerging industries and fields such as digital economy, green economy, artificial intelligence, semiconductor chips, etc. have not clearly changed.

Chairman of the National Assembly's Economic Committee Vu Hong Thanh

Exports face a number of difficulties, technical barriers, anti-dumping investigations and still depend largely on processed products. Meanwhile, high-tech industries and high-quality services have not developed strongly. Trade surplus still depends heavily on the FDI sector; the service trade deficit has not improved.

Production and business activities of enterprises still face many difficulties. In the first 9 months of 2024, an average of 18,200 enterprises withdrew from the market each month.

The financial and monetary markets still have potential challenges, bad debt is high, the handling of weak banks is slow, credit growth in the first months of the year is still low, the ability of enterprises to absorb capital and access credit capital is limited, and the pressure to repay corporate bonds due is high.

"The exchange rate has had periods of unusual fluctuations that affect business operations; gold market management still has many shortcomings, causing pressure on the foreign exchange market and exchange rates," Mr. Vu Hong Thanh pointed out.

In addition, cyber security risks to the Vietnamese financial system have become permanent and present with unpredictable consequences. Liquidity in the corporate bond market has improved significantly but still faces many challenges.

Monopoly, price inflation, wave creation, land speculation

Highlighting the difficulties in the real estate market, especially in terms of regulations and procedures for developing social housing projects, the Economic Committee said that from the beginning of 2024, apartment prices in central or suburban areas of Hanoi have recorded a sharp increase.

"There are opinions that the fundamental reason is that the supply of apartments in Hanoi is really scarce. The number of projects has been increasingly limited in recent years, while the demand of customers, especially young families, is still very large," the Chairman of the Economic Committee informed.

Land auction in Hoai Duc (Hanoi): The highest winning price was 133.3 million VND/m2, 18 times higher than the starting price. (Photo: KT)

There are also opinions that social housing is actually bought, sold, exchanged, and rented mainly by rich people, even foreigners, not workers, laborers, or people with real needs for this type of housing.

Therefore, the Economic Committee recommends that the Government conduct a comprehensive inspection of social housing development in recent years to find effective solutions; study and take strong measures against violations of social housing policies and laws, including those who buy social housing.

Along with the sudden increase in apartment prices, land prices in inner-city and suburban districts of Hanoi have shown signs of increasing rapidly again, especially in districts with information about upgrading to districts. In particular, recently, some auctions in suburban districts of Hanoi have attracted thousands of applications, more than ten times the number of plots sold and winning auctions with high prices also dozens of times higher than the starting price. However, the situation of "abandoning deposits" after winning the auction has negatively affected the price level and the housing market.

"The situation of monopoly, price inflation, wave creation, land speculation, pushing up land prices makes buying and selling almost only take place among speculators while people and businesses have difficulty accessing land because land prices are high, beyond their ability to pay," the Economic Committee's report pointed out.

Besides, the issuance of documents guiding the implementation of the Land Law, the Real Estate Business Law and the Housing Law, despite many efforts and attempts, has not yielded the expected results.

In addition, some bottlenecks have not been effectively resolved, such as the slow implementation of the National Power Plan for the 2021-2030 period, with a vision to 2050, and the National Energy Master Plan for the 2021-2030 period, with a vision to 2050.

"This delay could cause consequences for coal production, energy supply security, and electricity supply security of our country in the near future," the Economic Committee warned.

According to the audit report, counterfeit goods, poor quality goods, and goods of unknown origin continue to be one of the pressing issues of society. They leave negative consequences, affecting health and finances, reducing consumer confidence in the transparency of the goods market, and reducing the reputation of genuine manufacturers and businesses.

Resolutely eliminate projects that are not really necessary

Regarding the goals and solutions for 2025, the Economic Committee emphasized strong innovation in the work of building, perfecting and enforcing laws. Promoting decentralization and delegation of power associated with resource allocation, with the motto "locality decides, locality acts, locality is responsible, locality benefits".

At the same time, accelerate the disbursement of public investment capital from the beginning of the year. Enhance the responsibility of leaders in deciding on investment policies and project investment decisions, ensuring focus and key points; resolutely eliminate projects that are not really necessary.

Prioritize the allocation of central budget resources to implement projects connecting provinces, regions, countries and the world. Localities proactively balance local resources to invest in projects within the province.

Regarding the socio-economic development plan for 2025, the Economic Committee proposed continuing to restructure the economy, innovate the growth model; consolidate, maintain the role and renew the main growth drivers, traditional growth drivers, and promote new growth drivers.

Focus on removing difficulties, reviving the capital market, creating favorable conditions for people and businesses to borrow capital to restore and develop production and business.

Implement proactive, flexible, timely and effective monetary policies; carefully calculate the impact and effectiveness when operating interest rates and exchange rates; regulate currency and market liquidity appropriately to stabilize the credit system, strictly control credit quality and bad debts. Ensure smooth, effective and legal operations, control risks of the stock, gold, corporate bond and real estate markets.

In addition, there are solutions to prevent the downward trend of the real estate market combined with better control of the number of new houses being built, overcoming the imbalance between supply and demand or demand but no ability to pay.

Source: https://vov.vn/kinh-te/thoi-gia-tao-song-khien-viec-mua-ban-dat-hau-nhu-chi-dien-ra-trong-gioi-dau-co-post1129846.vov