In an interview for the Vietnamese Investor newspaper, Professor Hoang Van Cuong, Vice-Chancellor of the National Economic University, said new offers, especially low-cost housing, must be added for the property market to recover. This will help increase liquidity and transaction volume. This will help businesses generate income to pay off debts, restructure products, and access new loans.
“Most importantly, only when property developers’ financial capabilities improve can they regain customer confidence, which will be a prerequisite for a sustainable recovery,” says Cuong.
He notes that the two biggest barriers to the property business are capital and legality, as these factors determine the formation and development of all projects. The biggest problem is the legal inconsistency in the approval process for new developments. This hinders new projects from entering the market, even at the approval stage.
In terms of capital shortages, Cuong said that construction enterprises need long-term credit. This is hampered by tightened banking policies that make credit difficult to obtain. Changes to the current legislation are already planned. It is hoped that by the end of this year, the situation will be safely finalised and the new additions to the laws will make the construction process more accessible.