REAL ESTATE BUSINESS CREDIT GROWTH IN THE FIRST 9 MONTHS OF THE YEAR IS UP TO 21.86%, MUCH HIGHER THAN THE GENERAL GROWTH OF THE ENTIRE ECONOMY
On November 13, 2023, in Hanoi, the State Bank of Vietnam (SBV) collaborated with the Ministry of Construction to organize a Credit Conference on Real Estate and Social Housing Development. The conference was co-chaired by Governor of the SBV Nguyen Thi Hong, Deputy Governor and Standing Deputy Governor Dao Minh Tu, and Deputy Minister of Construction Nguyen Van Sinh.
In her report at the conference, Ms. Ha Thu Giang, Head of the Credit Department for Economic Sectors, stated that since the beginning of 2023, the Banking sector has vigorously implemented solutions to alleviate difficulties, enhance access to credit for customers, including ensuring liquidity and expanding credit limits from the beginning of the year. They continuously adjusted the operating interest rates four times, directed credit institutions to reduce costs to lower interest rates for loans, issued policies restructuring repayment terms and maintaining debt groups (Circular 02/2023/TT-NHNN; Facilitating difficulties for the bond market (Circular 03/2023/TT-NHNN), and managed credit to meet the sufficient and timely capital needs for business production, serving the legitimate living and consumption needs of the people and businesses. The program connects banks and businesses in 63 provinces and cities nationwide, specialized credit conferences (real estate sector, small and medium-sized enterprises, cooperatives, key export agricultural products, etc.), regional credit conferences to timely resolve difficulties and obstacles in accessing bank credit sources...
As of October 31, 2023, credit for the economy reached over VND 12.8 million billion, an increase of 7.39% compared to the end of 2022.
For the real estate sector, the State Bank encourages credit institutions to focus capital on segments such as affordable commercial housing, social housing, and housing for workers. At the same time, they control credit risks for the real estate business to promote a healthy and sustainable real estate market.
By September 30, 2023, the total outstanding credit for the real estate sector of credit institutions reached VND 2.74 million billion, an increase of 6.04% compared to December 31, 2022, accounting for 21.46% of the total outstanding credit for the economy. Specifically, real estate credit focuses on self-use consumer purposes accounting for 64%, and debt for real estate business activities accounts for 36% of real estate credit outstanding. Non-performing loans in the real estate sector are 2.89%, higher than the end of the previous year.
In the first 9 months of the year, credit for real estate business grew at a higher rate than the overall credit growth rate and the same period last year, reaching 21.86%. This indicates that the solutions and efforts of the Government, the Banking sector, and relevant ministries, localities in removing difficulties for the real estate market are gradually proving effective. In addition, credit institutions are actively implementing lending programs under the government's and the Prime Minister's policies on housing.
According to Ms. Giang, the real estate market still faces many difficulties and challenges, including persistent issues and obstacles such as legal procedures related to land, planning, and construction investment; Imbalance in supply and demand in certain segments, excess of high-end and villa housing while social housing and affordable housing are still limited; Market demand in some segments is sharply decreasing; Financial capacity of businesses is limited and mainly depends on external mobilization sources such as loans, bonds, mobilization from homebuyers; other capital mobilization channels have not been truly effective, especially the capital market (corporate bond market, stock market) is facing some issues and has not developed proportionally to its role in supplying medium and long-term capital for the economy; housing prices are high compared to the financial capacity and income of many people...
*The article is referenced by the author Quoc Thuy.*
In her report at the conference, Ms. Ha Thu Giang, Head of the Credit Department for Economic Sectors, stated that since the beginning of 2023, the Banking sector has vigorously implemented solutions to alleviate difficulties, enhance access to credit for customers, including ensuring liquidity and expanding credit limits from the beginning of the year. They continuously adjusted the operating interest rates four times, directed credit institutions to reduce costs to lower interest rates for loans, issued policies restructuring repayment terms and maintaining debt groups (Circular 02/2023/TT-NHNN; Facilitating difficulties for the bond market (Circular 03/2023/TT-NHNN), and managed credit to meet the sufficient and timely capital needs for business production, serving the legitimate living and consumption needs of the people and businesses. The program connects banks and businesses in 63 provinces and cities nationwide, specialized credit conferences (real estate sector, small and medium-sized enterprises, cooperatives, key export agricultural products, etc.), regional credit conferences to timely resolve difficulties and obstacles in accessing bank credit sources...
As of October 31, 2023, credit for the economy reached over VND 12.8 million billion, an increase of 7.39% compared to the end of 2022.
For the real estate sector, the State Bank encourages credit institutions to focus capital on segments such as affordable commercial housing, social housing, and housing for workers. At the same time, they control credit risks for the real estate business to promote a healthy and sustainable real estate market.
By September 30, 2023, the total outstanding credit for the real estate sector of credit institutions reached VND 2.74 million billion, an increase of 6.04% compared to December 31, 2022, accounting for 21.46% of the total outstanding credit for the economy. Specifically, real estate credit focuses on self-use consumer purposes accounting for 64%, and debt for real estate business activities accounts for 36% of real estate credit outstanding. Non-performing loans in the real estate sector are 2.89%, higher than the end of the previous year.
In the first 9 months of the year, credit for real estate business grew at a higher rate than the overall credit growth rate and the same period last year, reaching 21.86%. This indicates that the solutions and efforts of the Government, the Banking sector, and relevant ministries, localities in removing difficulties for the real estate market are gradually proving effective. In addition, credit institutions are actively implementing lending programs under the government's and the Prime Minister's policies on housing.
According to Ms. Giang, the real estate market still faces many difficulties and challenges, including persistent issues and obstacles such as legal procedures related to land, planning, and construction investment; Imbalance in supply and demand in certain segments, excess of high-end and villa housing while social housing and affordable housing are still limited; Market demand in some segments is sharply decreasing; Financial capacity of businesses is limited and mainly depends on external mobilization sources such as loans, bonds, mobilization from homebuyers; other capital mobilization channels have not been truly effective, especially the capital market (corporate bond market, stock market) is facing some issues and has not developed proportionally to its role in supplying medium and long-term capital for the economy; housing prices are high compared to the financial capacity and income of many people...
*The article is referenced by the author Quoc Thuy.*