Tight control over real estate credit to mitigate risks

The State Bank of Vietnam (SBV)’s decision to tighten control over real estate credit has helped to restrict speculation while making the market transparent and preventing a real state bubble, economic experts have said.
Tight control over real estate credit to mitigate risks ảnh 1The State Bank of Vietnam (SBV)’s decision to tighten control over real estate credit has helped to restrict speculation. (Illustrative photo: VNA)
Hanoi (VNA) - The State Bank of Vietnam (SBV)’s decision to tighten control over real estate credit has helped to restrict speculation while making the market transparent and preventing a real state bubble, economic experts have said. 

Deputy Governor Dao Minh Tu underlined that the move only aims to restrict segments with high risk of speculation in major projects, instead of impeding investment flow in real estate.

Economic expert Nguyen Tri Hieu said control over real estate credit is necessary to purify the market and reduce risks for the economy, especially amid the boisterous development of the sector in the recent past.

According to expert Can Van Luc, data from the SBV showed loans for home purchases and repairs rose by about 15-16 percent, while loans for real estate trading were up 7-8 percent.

Real estate credit growth is forecast to rise 9-10 percent this year, Luc added.

In its latest strategy for the banking industry, the SBV said credit must be channelled into production and business industries to create positive impacts on socio-economic development. It also urged banks to refrain from providing credit to businesses operating in risky areas, such as real estate, securities, corporate bonds, or build-operate-transfer (BOT) and build-transfer (BT) transport projects.

Some banks have temporarily halted loans for the real estate sector in the short term in the wake of the SBV's policy on controlling credit growth in risky areas.

Sacombank has recently required all its branches and transaction offices to focus loans on a number of production and priority industries such as agriculture, rural development, exports, supporting production, small- and medium-sized enterprises, high-tech application, trade, service and logistics.

Sacombank has also directed its branches and offices not to fund the real estate sector until the end of June, except for the bank’s staff and relatives to buy, build or repair houses for living purposes.

Techcombank has recently also notified its business units about controlling the disbursement limit for loans to buy real estate. The bank said it would suspend the provision of real estate loans from March 25, and would consider the disbursement in the second quarter./.
VNA

See more

In 2025, Goertek will invest in a new project and bring more experts and new technology equipment to Vietnam. (Photo: Goertek)

Vietnam expects big FDI wave in 2025

More than 4.33 billion USD in foreign investment was registered in Vietnam in January, an increase of 48.6% compared to the same period last year.

The Lao Bao border gate, Huong Hoa district, Quang Tri province. (Photo: VNA)

Nearly 200 projects registered in Quang Tri's IPs

Two economic zones and two industrial parks in the central province of Quang Tri have so far attracted nearly 200 investment projects, with a total registered capital exceeding 172.4 trillion VND (6.78 billion USD) and a planned land use of over 5,978ha.

At the meeting (Photo: VNA)

PM urges business leaders to drive economic growth

Prime Minister Pham Minh Chinh encouraged businesses to actively engage in large-scale national projects, such as the North-South high-speed railway, standard-gauge railways connecting with China, urban railways, and the nuclear power project.

Production at Minerals Holding Corporation in Lao Cai province. (Photo: VNA)

Vietnam’s industrial production inches up 0.6% in January

According to Director of the GSO’s Industry and Construction Statistics Department Phi Thi Huong Nga, Vietnam could achieve breakthrough industrial growth in 2025 and beyond by leveraging its advantages and accelerating digital and green transformation as well as meeting the increasingly stringent requirements of the international market.