No Fear of ‘Overheating’ Economy
On the morning of May 23rd, speaking at the discussion session on socio-economic issues, Prof. Hoang Van Cuong (National Assembly Deputy of Hanoi) proposed several urgent and focused solutions to realize the economic growth target of 8% in 2025.
Deputy Cuong suggested that to boost strong growth in 2025, the state should not only focus on public investment but also encourage private sector investment.
Referring to the principle of economic growth through capital and labor, Mr. Cuong stated that whatever attracts more capital will grow very fast. Therefore, if real estate pours in a lot of capital, the economy will grow very rapidly.
“China’s double-digit growth during its period was due to real estate, known as overheating,” he gave this example, and the Hanoi delegate suggested that in the period of 2025-2026, Vietnam should accept overheating growth through real estate development.
Delegate Hoang Van Cuong. Photo: Nhu Y.
Mr. Hoang Van Cuong explained that currently, the real estate market in Vietnam is in a period of shortage due to obstacles in eligible projects for construction. Meanwhile, the market has a huge demand, so real estate prices are high due to supply scarcity, not a “bubble”.
“If we loosen the development of the real estate market, it will balance the supply, and we don’t have to worry about overheating, oversupply, and inventory like in China. So, we need to encourage real estate growth during this period,” said the male delegate, citing statistics from the Ministry of Finance that there are 2,212 projects nationwide that are being implemented but are stalled due to obstacles, with a total investment of nearly VND 6 quadrillion, using nearly 350,000 hectares of land.
The National Assembly’s resolution has allowed the removal of obstacles for real estate projects in Ho Chi Minh City, Danang, and Khanh Hoa, but has not allowed the application in other localities.
“Therefore, I propose that this mechanism for handling obstacles be applied widely to real estate projects in other provinces to unlock these resources. If so, it will contribute significantly to economic growth,” said Deputy Cuong.
Besides, Mr. Hoang Van Cuong also proposed focusing on resolving social housing issues according to the National Assembly’s resolution. This will create truly sustainable growth.
Developing ‘Night-time Economy’
Another solution that needs attention and promotion for growth, as mentioned by Mr. Cuong, is stimulating and attracting international tourists. We have good infrastructure, but few tourists, so we must have policies to encourage tourism.
Free visa, develop ‘night-time economy’ to attract tourism.
“From now until the end of the year, we should announce a reduction in fees or even a waiver of visa fees; we will lose a little revenue, but we will attract tourists. Phu Quoc tourism area – almost a separate world; so, from now until the end of the year, we should experiment with a visa waiver for anyone who wants to come. Many places in South Korea have also completely waived visas,” he said.
Also, regarding tourism, Mr. Cuong suggested the need to promote the ‘night-time economy’ to encourage tourism development. Each locality with a tourist area should plan an area for night-time economic development; we must relax the conditions for this night-time economic area. Therefore, goods brought here for sale should be tax-free, and the rent should be free.
The delegate also said that there must be less control because the night-time economy is where tourists want to go to enjoy themselves and have fun without time constraints. So, we need to reduce control over time and activities and instead strengthen security and fire prevention and control.
The Real Estate Market Takes a Breather
In April 2025, there was a notable decline in interest across different segments of the real estate market. Specifically, land plots witnessed an 18% decrease in demand, followed by apartments with a 20% drop, and both detached houses and shophouses experiencing a 14% decline in interest.
Unlocking $6 Quadrillion: The Key to Unlocking Vietnam’s Real Estate Conundrum
National Assembly Deputy Hoang Van Cuong has proposed a bold idea to unlock nearly VND 6 quadrillion from over 2,200 stagnant real estate projects. By addressing the challenges faced by these ventures, Cuong believes that Vietnam can harness a significant source of capital to fuel its ambitious growth target of 8% in 2025. This innovative approach has the potential to revolutionize the country’s economic landscape, offering a new avenue to fund infrastructure development and stimulate economic growth. The question now is: will this proposal gain traction and shape Vietnam’s path toward a brighter economic future?
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