CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
Property investment lending in Vietnam set to be tightened from 2019
Hai Yen 20:33, 2019/01/26
Quality of lending to real estate sector could be rigorously monitored from 2019.
The authority aims at directing capital flows towards manufacturing and business sectors and reducing capital flows into risky non-production sectors, including real estate, according to Bao Viet Securities Company (BVSC). 
 
Illustrative photo.
Illustrative photo.
Under this circumstance, quality of lending to real estate sector could be rigorously monitored from 2019. 

In 2019, credit growth target for banks is 14%, unchanged from the performance in 2018. Therefore, lending to real estate in 2019 could be relatively lower than in 2018, stated BVSC in its latest report. 

Moreover, the ceiling for short-term funds used for medium- and long-term lending is also tightened. Since early January 2019, banks have lowered the cap on short-term funds used for medium- and long-term lending to 40%. 

The internal non-performing loan (NPL) ratio must also be reduced to 2%, potential risk sectors will also be strictly monitored. The risk factor for real estate loans will increase from 150% to 200%. 

This source of lending will not only hinder the business of real estate enterprises but also individuals who borrow to buy home. Apparently, these policy changes of the authority are of great importance amid active trade of real estate sector in 2018. 

BVSC expected that real estate growth will suffer a slowdown from 193.2% in 2018 to 43.6% in 2019. 

Total outstanding credit in Vietnam’s banking system grew 14% in 2018 year-on-year, the lowest since 2014, according to the State Bank of Vietnam. However, the Vietnamese economy grew at a decade-high of 7.08% last year. 
Comments
Other news
17:51, 2025/01/07
Vietnam prioritizes agriculture and renewable energy for access to green loans
The move is part of the government’s effort to accelerate economic restructuring and build resilience to climate change while protecting the environment.
16:49, 2025/01/06
Vietnam GDP expands by 7.09% in 2024
The 2024 growth rate is considered positive amidst global uncertainties and domestic challenges such as natural disasters.
14:39, 2025/01/04
Vietnam stock market set to accelerate in 2025: Experts
Stable macroeconomic fundamentals, ongoing institutional reforms, and favorable monetary policies will be positive for corporate earnings.
16:31, 2025/01/02
Vietnam stock market aims for emerging status by 2025: Finance minister
By the end of 2024, the benchmark VN-Index reached 1,266.78 points, up 12.11% from 2023.
15:33, 2025/01/02
Vietnam set to extend VAT cut for six months
This measure is expected to accelerate the recovery of production and business activities, which will ultimately benefit the state budget and the economy as a whole.
21:29, 2024/12/31
Vietnam’s credit growth projected to expand by 16% in 2025
Growth must put operational safety first, and channel credit to productive business sectors, priority areas, and growth-driving industries.