Credit for the real estate sector should be controlled Since early this year, shares of real estate and construction companies listed on the Ho Chi Minh Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX) have attracted an increasing amount of investment capital. Investors poured hundreds of billions of dong into real estate shares each trading session. Commercial banks continually offered credit packages for individual and enterprise customers, most of it for real estate projects and purchase. The State Bank’s statistics showed that the total outstanding loan balance for the economy in the first 11 months of 2016 hit more than 5.35 million billion dong. Agriculture, forestry and fisheries; industry and construction; trade, transport and telecommunications; and other service sectors were the major users of loans, with credit for the industrial and construction sector accounting for 31 percent (more than 1.67 million billion dong) of the total. According to their … [Read more...] about Controlling credit for real estate sector
Investors loans for real estate
Deputy Minister of Construction Nguyen Tran Nam says the new decree has introduced stipulations to minimize risks in the real estate market and encourage healthier growth in the sector. Reporter: What are the differences between the 71/2010/ND-CP decree and the previous 90/2006/ND-CP decree? Deputy Minister Nam: There are several differences. First, from the real estate finance perspective, the investor now can mobilize capital through enterprise bonds as stipulated and also through non-banking institutions such as financial companies and investment funds. Of course, he can also take out loans from banks on the condition that he will not prioritize products. Second, a primary investor in urban areas can transfer part of his project with its infrastructure to a secondary investor when the site-clearance project finishes. Third, the investor in a real estate project can mobilize capital from individuals or groups to build houses and divide profits or products according to agreements or … [Read more...] about More transparency for real estate market
Governor Nguyen Van Binh: Unwinding Credit for Real Estate State Bank of Vietnam Governor Nguyen Van Binh expects that the easing of credit for the real estate market will not only help investors sell property but also help companies of related industries like steel and cement to clear out inventory. This move also reduces bad debts at banks. The State Bank of Vietnam (SBV) announced new regulatory solutions and credit policies for the upcoming time on April 11, 2012. It is noted that the banking sector will focus on dealing with credit structure to create lending rooms for companies to expand production and business operations. The central bank requested credit institutions to reschedule overdue repayment periods for borrowers if their production and business operations were negatively affected by domestic and global economic slowdown that led to slow sales and export. Credit institutions and branches of foreign banks were told to actively work with borrowers to cope with … [Read more...] about Governor Nguyen Van Binh: Unwinding Credit for Real Estate
Sign of Capital for Real Estate The Vietnam real estate market raised its hopes when the State Bank recently introduced a procedure for credit organizations to eliminate 4 groups of demand for capital in the real estate field from the non-production credit proportion. However, this can be only considered a “technique trick”; the State Bank can hardly loosen financing for real estate during this period. The announcement to eliminate 4 groups of demand for capital in real estate from the non-production credit list stood out in Dispatch 8844 by the State Bank, guiding credit organizations and foreign bank branches on implementation of orientation and new credit regulations in the two last months. The State Bank demanded credit organizations continue implementing management measures on lending activities for the non-production sector, but excluded some demands for capital serving people’s necessary demands and under governmental social welfare policies. Those with … [Read more...] about Sign of Capital for Real Estate
Which Are the Solutions for Real Estate Market Development? At the conference “Comprehensive Solutions for Real Estate Market in 2012” held in Hanoi, many real estate experts pointed out some current troubles in real estate market during the last time, and proposed some solutions to real estate development. Opportunities for restructuring development strategy According to experts participating in the conference, the recent situation of the market is a certain result of inefficient and in-directive development process. Furthermore, the situation may be worse, but most people believe that corruption ability of Vietnamese real estate enterprises is quite low. In conformity with Mr Nguyen Manh Ha - Director of Department of Housing and Real Estate Market - Ministry of Construction, this current situation makes excellent opportunities for investors in the field of small apartments. According to statistic figures, the segment of small departments with acceptable prices in … [Read more...] about Which Are the Solutions for Real Estate Market Development?