The paradox: House prices are 24 times higher than the average income in Vietnam.

Businesses argue that every year the construction permit process drags on, costs increase by 5%, and this money is ultimately passed on to homebuyers.

The above facts were raised by experts and business representatives at a workshop on the Law amending and supplementing laws on investment and business on August 11th.

Contributing his opinion at the seminar, Dr. Le Dang Doanh, former Director of the Central Institute for Economic Management Research (CIEM), cited the reality of the huge disparity between housing prices and people's incomes. "While in other countries, the average house price is only slightly more than five times people's income, in Vietnam, this figure reaches 22-24 times. That is a paradox and also a tragedy," Dr. Doanh said.

He also warned that in 5-10 years, Vietnam will face a situation where the number of homeless people will increase dramatically, while land resources and income are limited... This will lead to major social consequences such as land and housing disputes and encroachment... Therefore, he believes it is necessary to clarify the effectiveness of state management based on minimizing the time and administrative procedures that are driving up housing costs and prices.

Businesses argue that cumbersome procedures for granting construction and investment permits have driven up costs and housing prices.

Providing a more detailed explanation of the housing price paradox from the perspective of an "insider," Mr. Nguyen Van Duc - Deputy Director of Dat Lanh Real Estate Co., Ltd.Recalling the period more than 10 years ago, it was very simple for businesses to obtain construction permits or investment licenses for projects. "But since 2010, the procedures have become much more complicated."not only"The simplification process is actually expanding, making it difficult for businesses," Mr. Duc commented.

This person also revealed that the aforementioned procedures are currently hindering businesses, and the consequences...Ultimately, it will be the people, specifically the homebuyers, who will bear the burden. According to Mr. Duc's calculations,For every year that investment and construction project licensing procedures drag on, businesses incur an additional 5% in costs. "These additional costs are ultimately passed on to the selling price of houses."This is a paradox."This business leader said, suggesting that many administrative procedures could be eliminated immediately and replaced with post-inspection procedures, as was the case before 2006. This would both ease the burden on businesses and reduce hardship for the people..."

While acknowledging the continued existence of "interest groups and power struggles within many ministries, departments, and agencies," Nguyen Duc Kien, Deputy Chairman of the National Assembly's Economic Committee, also shared his own insights on the reasons behind this, speaking from the perspective of a researcher.Real estate businesses are forced to increase house prices due to excessively high procedural costs.

"Real estate businesses are intermediaries, not on the side of consumers," Mr. Kien stated frankly. Therefore, when researching amendments to any law, Mr. Kien believes that the research must be thorough and thorough, not just superficial. "The State must regulate overall profits, not just blindly regulate for one group," he stated.

While agreeing with the view that state management must be effective, Dr. Le Dang Doanh argued that management at any level must follow procedures and not allow businesses to be harassed. He noted thatWhen you're writing research papers to amend laws, you must do so with a service-oriented approach.and suggested reconsidering the necessity of the Investment Law.

Sharing the concerns and longing for "the good old days" of Mr. Nguyen Van Duc, Dr.Nguyen Dinh Cung, the current Director of CIEM, believes that any policy that benefits businesses and the people should be urgently revised immediately, and should not be delayed before being "lumped together".Mr. Cung assessed this direction as consistent with the spirit of innovation, creation, and the determination to remove obstacles that the new government is aiming for.

According to VNE