Vietcombank General Director talks about credit orientation for real estate

As of December 31, 2022, outstanding real estate credit at the Joint Stock Commercial Bank for Foreign Trade of Vietnam ( Vietcombank ) increased by 17.46% compared to the end of 2021 and accounted for more than 20% of the total outstanding credit of this bank. Vietcombank has no credit restrictions for the real estate sector.

That was the information given by Mr. Nguyen Thanh Tung, General Director of Vietcombank, at the national online conference to remove difficulties and promote the safe, healthy and sustainable development of the real estate market, on February 17.

According to Mr. Tung, at Vietcombank, the real estate sector is divided into 4 segments and for each segment, appropriate mechanisms and policies have been developed for each customer as well as products on the market. Vietcombank also conducts timely reviews and updates according to the prospects and risk levels for each sub-sector group to provide timely support to customers in each real estate sector.

Vietcombank General Director Nguyen Thanh Tung speaks at the conference. Photo: Nhat Bac

Regarding credit orientation, Mr. Tung said that Vietcombank aims to expand credit with preferential interest rates for the real estate segment of industrial parks and export processing zones. This bank is committed to always accompanying and supporting capital sources for foreign enterprises, domestic enterprises, and joint ventures in investing in developing industrial parks in Vietnam with preferential interest rates.

Regarding the real estate sector of tourism, ecological, resorts and real estate of offices, high-rise buildings, and commercial centers, Mr. Nguyen Thanh Tung said that in the past time, to limit the negative impacts of the COVID-19 epidemic, Vietcombank has synchronously implemented solutions such as debt restructuring, maintaining the debt group to support customers with temporary liquidity shortages, applying preferential interest rates for new loans, lowering interest rates for existing loans and new loans to maintain and rebuild production and business activities to support customers in these segments to overcome difficult times and continue to recover and develop.

Regarding the future orientation for the above-mentioned real estate segment, Vietcombank aims to selectively provide credit, focusing on reputable, experienced enterprises with good financial capacity and implementation capabilities, and will consider timely adjustment of orientation when the market improves.

For residential real estate and housing, at Vietcombank, more than 90% of outstanding loans for this sub-sector are loans to individual customers. For individual customers, Vietcombank aims to provide credit to customers who want to buy for housing, have stable and transparent income...

Vietcombank's General Director emphasized that the bank's orientation is to maintain funding for investment projects in the residential land and housing real estate segment that have fully met legal procedures and have prices suitable to the real needs of the majority of people.

Regarding some difficulties and problems in the real estate lending process, Mr. Nguyen Thanh Tung emphasized the changes in legal documents and related policies and regulations over time. According to Mr. Tung, some problems have arisen in practice such as some projects that have been licensed, approved for investment policies, granted construction permits, granted land use right certificates... but were still revoked, leading to a prolongation of project implementation time and increased financial costs for businesses.

Regarding real estate prices in Vietnam, Mr. Tung assessed that they are still higher than the income of the majority of people, not suitable for those who want to buy a house to live in. In addition, the choice of investment segments by investors is not reasonable, leading to oversupply in high-end segments but shortage in the affordable segment.

According to Mr. Tung, the existence of real estate speculation has affected the stability of the real estate market in general and credit activities for the real estate sector in particular. The General Director of Vietcombank also said that capital mobilization through the bond channel of real estate enterprises is also facing many difficulties.

At the conference, Mr. Nguyen Thanh Tung proposed that the Government quickly find solutions to stabilize and develop the bond market healthily to create a medium- and long-term capital channel, creating a sustainable source of capital for the real estate market, thereby reducing pressure on capital supply from the credit channel.

Regarding legal issues for real estate projects, the General Director of Vietcombank suggested reviewing, perfecting, and ensuring consistency in documents and regulations to limit potential legal risks of the real estate market in general and credit activities in the real estate sector in particular.

Vietcombank leaders also requested real estate businesses to bring the price level to a level suitable for the market through management solutions and cost reduction. Along with that, restructuring and restructuring products towards real needs, affordable commercial housing segments, and low-income housing for healthier and more sustainable development.

Vietcombank's General Director said that since the beginning of 2023, the bank has reduced lending interest rates by 0.5% for existing loans. Vietcombank will continue to reduce all online transaction fees for individual customers in 2023.

In the real estate sector, to address people's need for loans to buy houses, in the coming time, under the direction of the State Bank of Vietnam, Vietcombank commits to actively accompany 3 other State-owned commercial banks to implement a home loan package with preferential interest rates for the affordable segment suitable to the ability and needs of the majority of people.

Source: https://nld.com.vn/kinh-te/tong-giam-doc-vietcombank-noi-khong-han-che-cap-tin-dung-cho-bat-dong-san-20230217121141357.htm