I. Solutions to Increase Attraction and Improve the Efficiency of Using Korean Direct Investment Capital in the Real Estate Sector of Vietnam

Information about the real estate sector is very limited. Underground trading activitiesstill happens every day in the market. Due to loose management, the priceReal estate is easily manipulated, virtual price increases always occur, informationThe market is noisy, not the real value of the property.

Furthermore, the issue of public disclosure of planning information has not been implemented.

People do not have access to authentic market information streams.

school.

2.4 Difficult groups from interactive markets

* High inflation, continuous trade deficit, large budget deficit

According to the most recent report in February 2008 by the group of professorsHarvard University economist advises Vietnam on economic policyVietnam is facing difficulties in implementing policies.Macroeconomics, high inflation, continuous high trade deficit, budget deficitbig book

In addition to the increase in oil prices and some raw materials on the market

world as well as natural disasters and domestic epidemics are objective causes.

leading to the increase in the consumer price index (CPI) in 2007, the main cause

of inflation is that although the economy is inefficient, it has to absorb a

too much capital . The total amount of capital flowing into the economy from outside

2007 estimated to be up to 22 - 23 billion USD (equivalent to 30% GDP) 2. Dong

At the same time, money supply, credit, and investment all reached record levels, with a

huge amount is given to inefficient state-owned enterprises. When that amount of money goes into

too much economy, not used effectively for production

producing goods and services will lead to a situation of “too much money but too little”.

goods”. Specifically, in 3 years (from 2005 to 2007), the money supply increased by a total of

135% but GDP only increased by 27%, and inflation was the inevitable consequence. Inflation calculated

According to the consumer price index (CPI) in 2007, it was up to 12.6%, the highest in the region.ASEAN region, also the highest level since 1997. According to the Institute's forecast,According to the Central Institute for Economic Management (CIEM), the average inflation ofup to 19.4% in 2008. The Asian Development Bank (ADB) also made a forecast.Vietnam's inflation rate could reach 15.6%.

Many projects have had to stop due to high cement prices.The increase in input material prices has pushed up the cost of producing goods.

Real estate prices are increasing but the selling price tends not to increase, even in many cases.The project had to reduce the selling price but still could not sell. It was inflation that made it so.The real estate business situation also encountered many difficulties, narrowing profits.real estate investors in general and in other areas of the economyeconomy in general. In short, this is really a very big problem, affecting manydecision to continue to invest or withdraw capital of foreign investors.

According to international experience, under normal conditions, budget deficit

3% is considered worrying, while 5% is considered alarming. CurrentlyToday, Vietnam's budget deficit has reached 5.8% of GDP. Not onlyThus, extra-budgetary expenditures in recent years have amounted to 20 -25% of total budget, too high a percentage.

Similarly, Vietnam's trade deficit in 2007 is estimated atabout 12 billion USD, or about 16% of GDP. Also according to international experience,

Under normal conditions, a trade deficit of 5-10% is considered worrying.Vietnam's current deficit can be considered alarming.

Without the massive influx of foreign investment and aid inIn recent years, the budget and trade deficits have been at a high level.

This severity will inevitably lead to economic collapse.macroeconomics. Thus, if for some reason these capital flows reverse, the economyVietnam's economy will face unpredictable risks.

*Real estate human resources are both lacking and weak.

Human resources for the real estate industry include a team of engineers responsible forsurvey, design, construction and maintenance of real estate projects; experts

investment analysis, providing support services for the real estate market. Specifically, the staffconstruction engineering department, architectural designers, planning andinvestment project management analysis, those who perform the standard organization functionbuyers, real estate brokers, real estate consultants, experts

Real estate valuation, experts in management, operation and exploitation of projects

Real estate…

Surveys conducted by real estate research and consulting company VietreesRecent times show that human resources working in the industryVietnam's real estate is currently lacking in both quantity and quality.The shortage is not only occurring among senior personnel but also among

as a deficiency in all stages, business areas related toreal estate products and services. The biggest shortage is thoseProfessionally trained real estate appraisers and brokers,

get the job done

The fundamental cause of the shortage is the market's inadequacy.

Real estate has developed too quickly compared to the development of training.human resources for this field. We all know that the Vietnamese real estate marketNam is still young compared to the market of other industries. ButThe demand for this field is huge.

Surely such a lack of quality and quantity, in addition to affecting

to the overall development of the entire Vietnamese real estate market (in terms ofprofessionalism of service, quality of real estate and real estate transactions

real estate) this is also one of the major barriers on the road to development.development of any real estate business.

2.5 Other difficult groups

*Poor infrastructure

Recently, at a conference to solicit opinions from foreign investors, many

who have expressed concerns about the underdeveloped infrastructure and

Land is not ready (especially for large projects requiring frontage)The widespread production restrictions have limited project implementation after licensing.investment certificate

The representative of the Australian Chamber of Commerce (AusCham) said that there are still manyMany challenges in infrastructure development in terms of policy, procedures, and finance

and land. One example mentioned is infrastructure development projects that require

go through many doors, all of which have the power to prevent and restrainproject. There is also a perception that private and foreign investment play a key role.key to solving infrastructure problems, but investmentThis is still underutilized.

In Ho Chi Minh City, investors complain a lot abouttraffic system overload. Especially traffic jams in the intersection area.

The Cat Lai Industrial Park has caused headaches for investors in the High-Tech Park, because manySome of their products are exported by air, which is a bottleneck.car for several hours on the way to the airport like now if not soonThe solution will certainly affect the signed contracts.

* Language barrier

In addition to concerns about infrastructure, high land rents,... businessesKorean businesses face many obstacles in language barriers - oneThe problem is “small but big”. This is one of the reasons whyitself contains potential risks due to the parties involved notcan understand or misunderstand each other. This causes the consequence thatwork is prolonged or distorted, causing, cracking and evenaggravate the conflicts… But this reason also means that

lose business opportunities or complicate situations.

Entering the big playground of WTO for nearly a year, the opportunity to attract investmentForeign direct investment has increased unprecedentedly, but seizing this great opportunity ofVietnam seems to be falling short of expectations - here are some recommendationsof the former WTO Director General. Also according to Prime Minister NguyenTan Dung in a regular meeting last September before membersGovernment officials said: “How much capital can we absorb now?

Foreign investment depends on ourselves". The important thing is to decide.The most important thing is still how much FDI into Vietnam is "digested" and "absorbed".bring the best benefits to the country, while also allowing investors to continueContinue investing and don't put your capital in for too long and then quickly leave.

Summary of the situation of attracting Korean FDI into the Vietnamese real estate sectorNam has achieved great achievements, modernizing the country, contributing todynamizing the economy, developing the real estate sector, improving qualitypeople's lives,..But Korea also faces many difficultieswhen investing in Vietnam as presented above. Want to attract capitalIt is important to have more FDI in the real estate sector, more effectively.overcome those difficulties.