Experts advise firms to raise funds from the stock market and foreign investment since banks are tightening credit to them. (Source: VNA) HCM City (VNS/VNA) - With banks tightening credit to the propertysector, developers should look at the stock market for capital, experts told aworkshop on “Potential and opportunities for investment in property stocks onNovember 30.
Economist Bui Quang Tin said there were 60 listed property firms, includinggiants like Vincom, Van Phu Investment VPI, Everland EVG, and Sai Gon Co.op.
The stock market would be a good source for developers since they usually needlong-term funds and large amounts and banks were squeezing credit the sector,he said.
The State Bank of Vietnam (SBV) has reduced banks’ use of short-term funds formedium- and long-term loans from the current 45 percent to 40 percent fromJanuary 1 next year, he said.
“Many property firms have achieved good results this year. Their upbeatbusiness performance has helped drive property stocks up.”
Besides, FDI would also be another source of funding for the property marketwith Vietnam currently being a magnet for foreign investment, he said.
FDI in the property market has been on the rise for the last three years.
In the first six months of this year, it surpassed 5.5 billion USD, accountedfor 25 percent of total foreign investment and was the second largestbeneficiary after manufacturing, he said.
Su Ngoc Khuong, investment director at Savills Vietnam, said capital was notthat big a problem for property developers who can raise it from other sourceseven if banks refuse them since they have had experience dealing with creditproblems in 2008-09.
“The story of property firms now and in the next two to three years is aboutland. Without clean lands, they will have no place to build new projects oroffer new products to the market.”
Without lands, they would not have the chance to tie up with foreign firmseither, he added.-VNS/VNA
VNA
