Rescue agriculture
production or estate market?
Arguments have been raised about who the
government should gather strength to rescue, real estate developers or
farmers, if they both are sinking.
Both are in big difficulties
The real estate market has been hibernating for a long
time, which has pushed a lot of real estate developers against the wall.
Meanwhile, the agriculture production is also facing big difficulties with
the rice price dropping to the deepest low. Who the government should rescue
now, the real estate market or agriculture production for the sake of the
national long term benefits?
The prolonged debate on whether the government should
spend trillions of dong to warm up the current frozen real estate market has
yet come to an end.
Some experts believe that the government should not try
to save all unprofitable enterprises, and that it should not interfere in the
enterprises’ operation. The real estate price falls have harmed real estate
developers, but would have paved the way for people to buy houses as more
reasonable prices.
However, others said the death of real estate
developers, if it occurs, will lead to the collapse of many other business
fields in the national economy, including the building material
manufacturers. Especially, commercial banks would suffer most because their
loans to real estate developers would become irrecoverable, while the bad
debt would make the national economy performance get stuck.
It seems that the government remains in the two minds
of pumping or not pumping capital to rescue the property market, with no
strong moves towards the market made so far.
Meanwhile, the government has also been urged to rescue
the agriculture production which is meeting big challenges.
In order to find the answer to the question what to
rescue, agriculture production or real estate market, analysts tried to find
out what business field brings bigger benefits to the national economy and
they leaned towards the agriculture production.
Agriculture production has always been playing a very
important role in the national economy, because it makes up GDP, ensures the
life of the workers in the field and ensures the fairness in the economic
development of the nation.
In 2012, when
Which way to follow?
The limitation in the public investment in agriculture
and the inability to access bank loans both have led to the low agriculture
added value.
It’s obvious that the agriculture production has bigger
influences to the national economy with 70 percent of Vietnamese population
earning their living on agriculture production. Meanwhile, the real estate
market only relates to a small labor force. In principle, the government
needs to take care for the benefits of the majority of people.
There are four scenarios for the government’s actions.
First, the government would save both. This proves to be unfeasible in the
context of the limited financial resources.
Second, the government should let both of them struggle
to survive. If so, both of them will die
With the third and fourth scenarios, the government
would gather strength to save one of the two.
SGTT
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Chủ Nhật, 12 tháng 5, 2013
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