If the economy relies on resources from industrial production, then the economy has a solid foundation. Looking back at the Japanese and Korean economies, what do they rely on? The economies of these two countries are well known to be based on science and technology.
When it comes to science and technology, it comes to the knowledge economy. Even countries that are not famous for technological products in the world, their service economy is also based on knowledge more than on manual labor like Vietnam.
It is known that the real estate market and related economic activities have contributed over 20% to Vietnam’s GDP in recent years. A rate that is thought to be too high in the economy. That is why the ups and downs of the real estate market dragged the country’s economy into trouble.
Vietnam has passed 2 years after the pandemic, but the economy is still stuck in a difficult pool. At the same time, the real estate market froze, the real estate giants have been jailed. Do Anh Dung, Trinh Van Quyet, Truong My Lan are all real estate giants. In addition, giant real developer Le Thanh Than has involved in too many.
The real estate industry creates its products such as houses, apartments, commercial areas… Houses cannot be exported, so in the end, houses are made and sold to Vietnamese people (also sold to foreigners but trivial). Buying land, building houses, and then blowing up land prices to make a profit, is a way to get rich “pickpocket“, not get rich by creating consumer products for society, like manufacturing industries.
Real estate investment gets rich very quickly, but that’s the way to get rich for the rich, but the country can’t get rich. If one person gets rich, someone else will be poor. For example, in the case of Thu Thiem, it is clear that the state took VND18 million/m2 of land from the people, but assigned it to businesses to sell up to VND350 million/m2. That’s how it creates injustice across the country. It is a form of getting rich in the form of depriving the poor and the powerless people.
Because for a long time, Vietnam’s economy does not rely on knowledge but depends too much on real estate. So even though they know that saving real estate, people will lose more and more opportunities to settle down, but there is no other way, they have to save. What does Vietnamese technology have? Nothing. So far, Vietnam has not been able to produce screws according to international standards, how can this economy stand on technological feet.
Some people think that Vietnam is different now, there is VinFast that can produce Vietnamese-branded cars. However, the scandal revealed that VinFast ordered the parts of automobile from China, then brought it back to Vietnam to assemble and paste Vietnamese brands, once again, clearly proving that Vietnam’s technology industry is zero.
When the economy has plummeted, as the head of the Government, Prime Minister Pham Minh Chinh will be stuck in the problem of reviving the economy. Because Vietnam’s manufacturing economy depends on orders from abroad. It is also difficult to revive production, because there are external factors dominating. Now only to remove difficulties for real estate, although the Prime Minister knows that, if real estate recovers, it will continue to blow bubbles into the market, causing people to lose more and more opportunities for home ownership.
An economy that relies too much on real estate is a crippled economy. Vietnam will not be able to develop if it relies on this sector to get growth numbers. Blowing bubbles into the real estate market also leads to a vicious cycle. Real estate development hot, after hot is frozen, after freezing is the rescue. Just like that, the cycle repeats. Real estate giants are saved, and people are increasingly losing the opportunity to settle down. To rescue the economy, obviously, PM Chinh is at very difficult situation.
Thoibao.de (Translated)
