PM calls for fixing property market ills

By Anh Minh February 2, 2023 | 07:34 pm PT

Prime Minister Pham Minh Chinh speaks at a government meeting on February 2, 2023. Photo by the Vietnam Government Portal

Government agencies need to resolve the issues plaguing the property market so that other markets, such as bond, can recover, Prime Minister Pham Minh Chinh has said.

The property market and corporate lending are key issues that need to be addressed, and the Cabinet has scheduled a meeting of ministers this month to resolve current issues, he told a meeting Thursday.

The property market accounts for around 11% of GDP and has a close relationship with many industries that create a large number of jobs.

But since last year it has been facing difficulties due to tightened credit, excessive supply and lack of transparency.

Many projects have been suspended due to a cash shortage.

Chinh warned the economy faces risks this year with exports seeming to slow down while the industrial production index in January declined by 8% year-on-year.

It is difficult to attract foreign investment, while recovery programs have been delayed, he said.

He called on the Ministry of Finance to quickly complete a bill that will amend regulation of bond issuances, both domestically and internationally.

Work on large public projects needs to be accelerated to achieve the target of disbursing VND700 trillion ($29.85 million) this year, he added.