SGGPO
On November 13, in Hanoi, the State Bank of Vietnam (SBV) coordinated with the Ministry of Construction to organize a conference on credit for real estate and social housing development, with the participation of representatives from the Government Office, the Ministry of Public Security, the Ministry of Finance, the Ministry of Planning and Investment, the Ministry of Natural Resources and Environment, the Ministry of Justice, real estate associations and businesses.
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Governor of the State Bank of Vietnam Nguyen Thi Hong speaks at the conference |
Since the beginning of the year, real estate business credit has grown very strongly. As of September 30, the total outstanding credit balance for the real estate sector of credit institutions reached VND 2.74 million billion, up 6.04% compared to December 31, 2022, accounting for 21.46% of the total outstanding credit balance for the economy. Of which, real estate credit focused on consumption/self-use purposes accounted for 64% and outstanding credit for real estate business activities accounted for 36% of outstanding credit balance in the real estate sector.
In the first 9 months of the year, real estate business credit had a very high growth rate (21.86%), higher than the general credit growth rate and the same period last year. According to the Department of Credit for Economic Sectors (SBV), this shows that the solutions and efforts of the Government, the banking sector and ministries, sectors and localities in removing difficulties and obstacles for the real estate market are gradually showing effectiveness.
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Delegates give their opinions at the conference on credit for real estate and social housing development. |
According to the representative of the State Bank, in recent times, this agency has encouraged credit institutions to focus capital on the segments of low-cost commercial housing, social housing, housing for workers; control credit risks in the real estate business sector to promote healthy and sustainable market development. In addition, credit institutions have also actively deployed loans according to the Government and Prime Minister's housing programs.
According to the representative of the Department of Credit for Economic Sectors, the above figures show that, in recent times, the banking sector has made efforts and implemented many solutions in accordance with the policies and directions of the Government and the Prime Minister to contribute to removing difficulties and promoting the real estate market to develop safely, healthily and sustainably. However, in the face of many economic difficulties, business activities of enterprises as well as people's incomes are affected, leading to the quality of real estate credit also having potential risks that need attention.
The bad debt ratio of real estate credit as of September was 2.89%, an increase compared to December 31, 2022 (1.72%). Credit for consumption and self-use purposes decreased, while credit for real estate business increased very high. This is a point to note when the demand for credit to buy real estate tends to decrease, partly reflecting the market's purchasing power is decreasing compared to the previous period.
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Conference scene |
The real estate market still faces many difficulties, including many long-standing problems such as problems with the legal procedure system related to land, planning, and construction investment; imbalance in supply and demand in segments; limited financial capacity of enterprises and dependence on external sources of mobilization; high housing prices compared to the financial capacity and income of many people...
To contribute to promoting the healthy and sustainable development of the real estate market, many opinions at the conference said that it is necessary to implement comprehensive solutions with the coordination of many ministries, branches and localities to continue handling and resolving legal procedural problems in the real estate sector; develop the medium and long-term capital market; and continue to carry out the tasks assigned by the Prime Minister.
In particular, the banking sector will continue to synchronously implement solutions, such as: Continuing to review and perfect the legal framework to increase access to credit capital for the economy, ensuring system safety; continuing to implement the policy of restructuring debt repayment terms and maintaining debt groups to support customers in difficulty; monitoring and closely following the implementation of the 120,000 billion VND program, contributing to promoting investment, construction and purchase of social housing by people...
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