State budget funds should not be used to save the property market because that is a matter for the market itself, Chief Economist at the Bank for Investment and Development of Vietnam (BIDV), Dr. Can Van Luc, told a roundtable discussion held as part of the fifth Vietnam Economic Forum on December 17.

The discussion heard recommendations from analysts on tackling the challenges facing the country’s real estate and financial markets.

Dr. Luc, who is also a member of the National Monetary and Financial Policy Advisory Council, touched on the first of three short-term solutions for the property and financial markets, which is to regain investor trust.

“The State should only create a mechanism, while investors and enterprises should share in the risk,” he said.

The second solution is to stabilize the macroeconomy, remove legal barriers, and unlock capital for the economy.

In this regard, he said the State should unlock capital resources, in particular hastening the 2022-2023 economic recovery program, accelerate public investment disbursement, and pay greater intention to legal issues that have put thousands of property projects on hold around the country. It is also necessary to boost capital for green growth.

And the third is to ensure market liquidity and banking system security.

“It is necessary to soon identify solutions to handle poorly-performing banks, so as not to allow risks to spread between securities, real estate, and banks,” Dr. Luc said.