Outstanding loans to real estate businesses on the rise
Loans total nearly $34 billion to date.
Outstanding loans to the real estate sector stood at nearly VND800 trillion ($33.9 billion) as of December 30, 2022, according to the State Bank of Vietnam (SBV).
Loans for projects building urban areas and housing developments are estimated at over VND180 trillion ($7.6 billion), or 22.8 per cent of the total.
Data from the Ministry of Finance shows that as of October 28, 2022, corporate bond issuances had reached nearly VND329 trillion ($14 billion) in value, down more than 25 per cent compared to the same period of 2021.
Real estate enterprises account for 28.87 per cent of all corporate bonds issued.
In late 2022 and this year, a number of real estate businesses have been under pressure to repay bonds before they mature for multiple reasons, including changes to the policy controlling issued corporate bonds, according to the Ministry of Construction.
At a recent meeting with the SBV, Prime Minister Pham Minh Chinh instructed the central bank to take measures to remove difficulties in credit access for developers and buyers and encourage project development, market restructuring, and the proper handling of bad debts and corporate bonds in the sector.
