There should be a reasonable roadmap in controlling capital into real estate

VCN - Controlling capital into real estate is necessary to make capital healthy in this market. Due to the great relationship and impact of the real estate market on the economy, the control needs a roadmap, and should not be "horizontal" or "equal" for all projects.
A view of the dialogue.
A view of the dialogue.

In the period of economic recovery after the Covid-19 pandemic, implementing Resolution No. 11/NQ-CP dated January 30, 2022 of the Government, the State Bank requested that commercial banks must direct credit to production, business, and priority areas according to the policy of the Government. At the same time, continue to strictly control credit in risk areas, including real estate investment and business.

Other capital mobilization channels for real estate such as corporate bond channels have revealed many gaps and inadequacies that need to be adjusted and improved.

At the seminar "Controlling capital into Real Estate - Policy and Impact" held by the Ministry of Construction on May 11, many opinions said that controlling capital into real estate is necessary.

However, if capital into real estate is not properly controlled, the real estate market will be strongly affected, thereby affecting dozens of other related industries such as construction materials, interior - exterior, green landscape, and electrical and electronic equipment.

Speaking at the seminar, Assoc. Prof. Dr. Tran Dinh Thien, former Director of the Vietnam Economic Institute, said that at present, capital flows into other industries compared to real estate are biased, so when it comes to real estate we're always talking about tightening.

According to Assoc. Prof. Dr. Tran Dinh Thien, after two years of being affected by the Covid-19 pandemic, the real estate market was blocked, now with the economic recovery, the opportunity for a booming market is approaching.

However, expert Tran Dinh Thien said that the control of capital flows into real estate has not been shaped, which could lead to missing out on this opportunity, which is because the current policy is not "bold" enough to approach the opportunity in the real estate market.

Mr Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association, said that in fact, in recent times, commercial banks have stopped lending real estate credit, leading to difficulties for businesses and consumers, because this is the "midwife" for real estate businesses in the stage of implementing real estate projects to the stage of attracting capital from customers.

Mr. Le Hoang Chau said he highly approves of the State Bank's roadmap to tighten bank credit, according to which commercial banks can only use 30% of real estate credit loans by 2023, many countries have done the same.

However, if most countries already have real estate investment funds to socialize capital for real estate with real estate investment funds, in Vietnam there is only one real estate investment fund of Techcombank with capital few sources. Therefore, the tightening of credit financing for real estate will certainly have a strong influence on real estate business.

"The state should not tighten capital into the real estate market but should control lending to businesses and borrowers and use loans for the right purposes," Mr. Le Hoang Chau suggested.

At the seminar, many said that if banks continue to tighten lending to real estate, real estate businesses and a series of businesses will continue to face difficulties if they cannot access capital.

Housing prices may escalate and people's access opportunities to housing will decrease.

Mr Le Hoang Hoan, Chairman of the Board of Directors, General Director of Dat Viet Group, said that perfecting the credit policy for the real estate market is an important point to open capital flows and ensure the development of the market towards transparency and stability.

Accordingly, the representative of Dat Viet Group said that the control of the bank's capital should have a roadmap. Banks will selectively tighten real estate credit, not completely lock the real estate credit valve, if credit is locked suddenly, many unfinished projects will face difficulties, businesses cannot repay loans, and banks face the risk of bad debt.

At the same time, it is not recommended to implement the policy of tightening capital into real estate in a leveling manner, which is common to all projects, but it is necessary to classify projects to have appropriate management directions without adversely affecting the market.

“The supply shortage of the real estate market has been detected continuously since 2020. A series of projects could not budge because mechanisms and policies couldn’t be approved. If the business has credit cut off, the projects that are approved will not be able to deploy. The shortage of supply will be more serious,” Mr. Hoan said.

Along with that, there is a consensus on the need for banks to have preferential lending mechanisms and encourage businesses to develop affordable commercial housing projects (VND1 billion to VND2 billion) for real housing needs; increase consumer credit for individual customers buying a home for the first time, buying a home to live, not for speculation.

By HoaiAnh/Quynhlan

Related News

Prospects for the real estate market from supportive policies

Prospects for the real estate market from supportive policies

VCN - The Government has taken drastic actions to remove legal obstacles, creating conditions for the real estate market to develop transparently, healthily, safely and sustainably. Customs Magazine had an interview with Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA) about this issue.
State budget decreases by about 8% year-on-year

State budget decreases by about 8% year-on-year

VCN – The economy has faced difficulties such as the decline in production and business activities; slow recovery of the real estate market; difficult export market due to reduction in orders; high increase in the number of enterprises suspending business activities or withdrawing from the market, and the implementation of policies on exemption, reduction and extension of taxes, fees and charges, which has affected the state budget revenue, the Ministry of Finance said.
Efforts to "break the ice", when will the real estate market warm up?

Efforts to "break the ice", when will the real estate market warm up?

VCN - The Government, ministries and branches have been trying to issue and implement solutions to remove difficulties for the real estate market. As a result, in the first 3 months of 2023, the real estate market continuously received good news from the policy, which initially created a positive psychological effect.
Revising Circular 16: More positive impact on corporate bond market

Revising Circular 16: More positive impact on corporate bond market

VCN - According to the State Bank of Vietnam (SBV), the results of inspection and supervision of the trading of corporate bonds by credit institutions have shown number of potential problems, so it is necessary to revise regulations to strictly control risks, contributing to ensuring system safety.

Latest News

Embracing green exports: a pathway to enter global supply chains

Embracing green exports: a pathway to enter global supply chains

This shift presents both a challenge and an opportunity for Vietnamese businesses to innovate and enhance their competitive edge in the international arena.
New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

The ministry proposes to issue a decree on the establishment, management and use of the Investment Support Fund to stabilise the investment environment, encourage and attract strategic investors and multinational corporations.
Việt Nam’s durian exports to China plummet by 80%

Việt Nam’s durian exports to China plummet by 80%

This sharp decline has had a direct impact on Việt Nam’s fruit and vegetable export revenue, which stood at US$416 million in January 2025, marking a 11.3 per cent decrease month-on-month and a 5.2 per cent drop year-on-year.
Coconut exports reach 14-year high

Coconut exports reach 14-year high

In 2024, fresh coconut and coconut product exports surpassed US$1 billion, marking the highest figure in the past 14 years.

More News

Shrimp exports grow in the first month of 2025

Shrimp exports grow in the first month of 2025

According to data from the Việt Nam Association of Seafood Exporters and Producers (VASEP), shrimp products recorded a 13 per cent increase in export value in January 2025, reaching a total of $273.3 million.
Rice export prices drop, but decline expected to be short-term

Rice export prices drop, but decline expected to be short-term

Việt Nam’s rice export prices have declined, reaching their lowest level in three years.
Key agro products expected to maintain export growth this year

Key agro products expected to maintain export growth this year

At present, agricultural exports, such as rice, coffee and seafood, have steadily secured a stable place in major global markets.
EU issues 12 warnings against Việt Nam’s food and agricultural exports

EU issues 12 warnings against Việt Nam’s food and agricultural exports

The Việt Nam SPS Office has reported that some Vietnamese export products failed to meet the EU’s stringent standards.
Việt Nam to impose VAT on low-value express-imported goods

Việt Nam to impose VAT on low-value express-imported goods

Việt Nam will end a previous policy that exempted imported goods valued under VNĐ1 million (US$39.4) from taxes when shipped via express delivery.
Exchange rate risks need attention in near future

Exchange rate risks need attention in near future

VCN - Exchange rate developments in 2025 are considered to be quite complicated due to US policies related to trade and investment.
Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month

Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month

VCN - Data from the General Department of Vietnam Customs indicates a softening of both exports and imports in January 2025, relative to the same month in 2024.
Import and export turnover reaches about US$29 billion in the second half of January 2025

Import and export turnover reaches about US$29 billion in the second half of January 2025

VCN - Vietnam's total import and export turnover in the second half of January 2025 (January 16-31, 2025) reached US$28.9 billion, the latest preliminary statistics of the General Department of Vietnam Customs reported.
Market edges up slightly as liquidity remains low

Market edges up slightly as liquidity remains low

Market breadth remained positive, with 161 gainers outnumbering 144 decliners.
Read More

Your care

Latest Most read
Embracing green exports: a pathway to enter global supply chains

Embracing green exports: a pathway to enter global supply chains

This shift presents both a challenge and an opportunity for Vietnamese businesses to innovate and enhance their competitive edge in the international arena.
New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

The ministry proposes to issue a decree on the establishment, management and use of the Investment Support Fund to stabilise the investment environment, encourage and attract strategic investors and multinational corporations.
Việt Nam’s durian exports to China plummet by 80%

Việt Nam’s durian exports to China plummet by 80%

This sharp decline has had a direct impact on Việt Nam’s fruit and vegetable export revenue, which stood at US$416 million in January 2025, marking a 11.3 per cent decrease month-on-month and a 5.2 per cent drop year-on-year.
Coconut exports reach 14-year high

Coconut exports reach 14-year high

In 2024, fresh coconut and coconut product exports surpassed US$1 billion, marking the highest figure in the past 14 years.
Shrimp exports grow in the first month of 2025

Shrimp exports grow in the first month of 2025

According to data from the Việt Nam Association of Seafood Exporters and Producers (VASEP), shrimp products recorded a 13 per cent increase in export value in January 2025, reaching a total of $273.3 million.
Mobile Version