Dr Vu Tien Loc: Unlocking the real estate market to boost the economy is a crucial solution

DNHN - According to Dr Vu Tien Loc, a National Assembly delegate and Chairman of the Vietnam International Arbitration Centre, unlocking the real estate market to boost the economy is a crucial solution.

Real estate is related to many sectors of the economy

Dr Vu Tien Loc said that the Vietnamese economy has just passed the first quarter with improved macroeconomic indicators, but there are still many difficulties. This is because the Vietnamese economy needs to accelerate in the coming period, but growth drivers are gradually weakening.

According to Mr Loc, the Vietnamese economy relies heavily on foreign direct investment (FDI), but Vietnam has few large projects in the high-tech sector, so plans to create breakthroughs in this area are still quite difficult.

The National Assembly delegate said that growth drivers from exports and public investment are also showing signs of decline. In particular, public investment is not a long-term driver for the future because the resources for public investment are limited; exports have increased recently but not significantly, and the domestic private sector is weakening.

Accordingly, Resolution 41 of the Politburo for the first time clearly stated the requirement to focus on promoting the development of domestic enterprises and national entrepreneurs. However, in reality, this sector is weakening, and this is the economy's main growth driver in the future.

Therefore, Dr Vu Tien Loc affirmed that unlocking the real estate market to boost the economy is a crucial solution, especially at this stage. Because growth in real estate is related to the entire supply chain, real estate creates a level playing field and is the foundation for production and business activities in the economy; it is also where people live and work.

Mr Loc shared: “The impacts of real estate are not only calculated in terms of money, but real estate also has a knock-on effect throughout the economic system, creating growth for other economic sectors. Therefore, in the coming period, efforts should be focused on restoring the real estate market.”

The real estate market needs time to adapt to new regulations

Regarding this issue, Dr Vu Tien Loc said that the National Assembly has passed three important laws: the Land Law, the Housing Law, and the Real Estate Business Law. These three laws are considered three spearheads to promote and rescue the real estate market.

He said that the market will be associated with the following keywords: “Stuck and slow, difficult and stuck”. Specifically, it is stuck in legal issues, slow in procedures, difficult in terms of capital sources, and stuck in terms of liquidity. There are now a series of solutions to address legal issues in the coming period, but the implementation and deployment process will be difficult to achieve as expected, and the market still needs time to adapt.

“We can have high expectations for the impact of these laws on the recovery and development of the market. However, in the short term, the journey may be difficult, because there are still some overlapping points that have not been thoroughly revised, and the implementation of the law will give rise to many problems in practice,” emphasised Mr Vu Tien Loc.

According to Mr Loc, some content can be implemented from July 1st, including very positive advice from the Vietnam Real Estate Association. However, it is necessary to recognise the reality that in the real estate business sector, there will not only be positive aspects but also many difficult problems that require the involvement of the Government and the entire population. We need to restore confidence in the market, mobilise capital, and remove legal barriers so that people feel secure.

The expert added that the laws are being increasingly completed and harmonised, but legal risks always remain, and disputes will still occur. Therefore, it is essential to prevent legal risks and resolve real estate disputes.

In the recent past, disputes in the market between real estate businesses with each other, between real estate businesses and customers, partners, etc. have increased rapidly. Therefore, Mr Loc said that the market needs to pay attention to legal risks, risk management, and dispute resolution.

At the same time, in resolving disputes between businesses, we should focus on conciliation and negotiation. This approach is also more appropriate for businesses, helps to protect business information, and respects the autonomy of businesses.

“I hope that real estate businesses with disputes will not rush to court. If necessary, they should go to arbitration so that both parties can win and then join hands to continue cooperating. It is essential for domestic businesses to work together for the long term,” said Mr Loc.

Mr Loc also said that after July 1st, decrees will be implemented. The Vietnam International Arbitration Centre proposes to coordinate with the Association to organise a conference on the implementation of legal regulations for the entire real estate sector to best implement legal documents and best prevent legal risks so that businesses can operate more safely.

“This is a top priority for businesses. We are ready to assist real estate businesses in their efforts to enhance legal capacity, manage risks, and prevent and resolve disputes,” suggested Dr Vu Tien Loc.

Nhan Ha