Many industries are waiting for real estate to open

Posted: 18-05-2023
Turnkey a house entails thousands of arising needs. Real estate development promotes the growth of many ancillary industries. When real estate is in trouble, many industries are equally 'worried'.

Having just received the notice that the investor will hand over the apartment on Dao Tri Street (District 7, Ho Chi Minh City) next month, Quy Nien immediately thought of finding an interior design and installation unit. Her future neighbor, Mr. Pham Chien even ordered all new home appliances, ready-made goods, just waiting to be delivered.

It can be seen that, when the needs and living standards are higher, many families not only live with four monotonous white walls, the furniture in the house also becomes more diverse. They want to create a space that expresses the voice, style and lifestyle of the owner.

One house - thousand needs

Looking from the specific stories of residents like Nien, Chien and more broadly, thousands of needs arise when a real estate is completed, it is easy to see that there is an entire ecosystem of industries. related to and influence each other around real estate.

Without the works, the interior, design, and home appliance industries… also lost many development opportunities. Even some seemingly unrelated fields such as decorative arts, consumer loans... are also affected by the 'health' of real estate. To create a perfect living space both in terms of exterior and interior, that house, villa, apartment... needs hundreds of products to go with.

Along Ngo Gia Tu Street (District 10, Ho Chi Minh City), which is bustling all year round, now small furniture merchants only sell seasonal products. As for Hai Thuong Lan Ong Street (District 5), it used to be very crowded with customers buying light bulbs, wires, Christmas decorations, but now it's also sporadic and deserted.

At this time, as noted by the writer, many large electronics supermarkets in Ho Chi Minh City such as Dien May Xanh, Cho Lon, Nguyen Kim, Thien Nam Hoa ... the amount of shopping at the end of the year is not much sudden. 'Real estate investors often have a program to 'receive a house for Tet', this year real estate is difficult, the project is behind schedule, new houses are not available for delivery, so it also limits people's demand for year-end shopping. people', said Mr. Tuan, a manager at a large electronics supermarket on Kha Van Can Street (Thu Duc City).

It is easy to see that a completed house, when put into use, will entail the need for a fully-equipped living space. Then the necessary items such as: furniture (cabinets, beds, tables and chairs...); household electrical appliances (TV, refrigerator, washing machine...); cameras, security equipment; water tank, solar water heater; stoves, kitchen utensils (cookers, pots, pans, etc.); decorations (flowers, pictures, wallpaper, curtains…) as well as many other things that need to be present to ensure basic living for the people. Therefore, in the current context, when the real estate market is facing many difficulties, many related manufacturing and service industries also face many declines.

The circle of economic impact of real estate

Vietnam started to doi moi in 1986, the real estate market also began to 'fragment'. In 1993, after the National Assembly passed the first Land Law and the Housing Ordinance, creating a legal framework for the market for land use rights and house ownership, the real estate market was officially formed.

With a history of about 30 years, the real estate industry in our country has undergone many changes and has become a factor closely related to the economy of production, services, trade..., affecting more than 40 different industries. .

In early 2021, the Vietnam Real Estate Association (VNREA) announced the results of a scientific study on 'Real estate in the Vietnamese economy - role and policy recommendations', conducted by experts in the field of real estate. industry leader in the fields of economics, real estate, finance - banking, planning and legal. The research shows that real estate contributes 7.62% of the national GDP, plays a role of a 'tractor' to many industries such as: construction, tourism, accommodation - catering, processing and manufacturing, finance - In particular, when the final demand of the real estate industry increases by 1 billion VND, the production value of the remaining industries will increase by 0.772 billion VND.

Real estate has a direct impact on the urbanization process and indirectly on the production, trade and consumption industries. Photo: Freepik

Mr. Nguyen Manh Ha, Vice Chairman of VNREA, further analyzed that over the past 10 years, on average, Vietnam has built 60 million m2 of new housing each year, providing accommodation, especially for urban areas. According to calculations, each year the real estate market contributes 0.4 percentage points to economic growth, equivalent to 10% of national income and 3% of GDP growth.

Contributing greatly to the state budget (11 months of 2022, accounting for 17.2% of total domestic revenue, an increase of over 30% over the same period), real estate plays an essential role in the economy, creating jobs for millions of workers, and at the same time contribute to ensuring social security in housing for people. The field of real estate has also been included in the curriculum at some universities in the world and in Vietnam to supplement quality resources for the whole industry.

In the face of worries about the stagnation of real estate, the Government and ministries, sectors, businesses, and banks are all joining hands
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