Impatient with resources “burried” underground
Real estate market is still frozen, and is described as “bottom line of the crisis”, “headlong plunge”. Many people say “no” to real estate even if they have money. Some others suggest to call it “back stage” instead of “market” because it’s so complicated that even policy makers can not understand.
It’s old yet heartbreaking, especially when the real estate market is frozen, which means our resources are burried underground and our country is burdened with bad debt, resulting from credit growth and disbursement. Real estate does not reflect the state of the economy basing on shades of the economy itself but sometimes on the evaluator’s optimistic or pessimistic attitude, and most of the time on facts and figures.
The Housing strategy in which the State’s responsibility in housing sector was confirmed was approved in 2011. This is the first strategy to identify commercial housing and social housing, make specific plans and set up targets for many local provinces. Minister Trinh Dinh Dung once said it was not housing average area but the number of citizens owned a house that mattered, and the way to balance the supply and demand in housing sector was the way to create the real estate market’s sustainability.
“Willing to be money-keeper for citizens”
More than one, Minister Dung explained the aim of the 30,000 billion VND was not to rescue the real estate market, but to “support our citizens to own a house”. And more than anyone the Minister was aware of many barriers that his citizens had to overcome to access this monetary aid such as administration procedures. Minister Dung once said he was “willing to be money-keeper for citizens”, and indeed he was. After being signed by Minister Dung, the Decree No. 15 was considered as against institutional stagnation, and saved more than 2,300 billion VND out of 27,433 billion VND when rechecking. No one can deny this amount of money is “rescued” from being wasted thanks to the effective Decree No. 15, just exactly as the Minister of the Ministry of Construction promised during his effort to make a new decree. In his opinion, the Minister believed the real estate market would be rescued by those policies facilitating people to own a real house.
If it’s true that Vietnam has successfully avoided the real estate bubble as The New York Times’ statement, then it’s also true that Minister Dung is a man of talk and action.
Pro. Dr. Dang Hung Vo (Former Deputy Minister, Ministry of Natural Resources and Environment): “Minister Trinh Dinh Dung is a man of action” I think Minister Dung is a man of action. The real estate market is in big trouble: the demand for social housing is rising while the supply is insufficient and housing inventory is still full. Minister Dung actively finds ways to overcome this bad situation, and continually suggests policies to remove obstacles for citizens to access the State’s monetary aid. His recent moves, such as signing a cooperation agreement with the State Bank of Vietnam, and approving the Law of Housing and the Law of Real Estate Business (amended), are right decisions which trigger the real estate and effectively support those who really want to own a house. Pro. Dr. Tran Ngoc Duong (Senior Advisor, The National Assembly): “Minister Dung is good at managing housing sector by legislation” In my opinion, Minister Dung is good at managing housing sector by legislation. He pays much attention to perfect the legal documents on construction. After 2 years being in charge of the Ministry of Construction, Minister Dung has submitted the Law of Construction (amended) to the National Assembly, and will submit the Law of Housing, the Law of Planning in short time. I consider Minister Dung as a practical man, and he has ability to form a policy by generalizing the practice. |
Source: Laodong
Translated by: Thu Huyen