Total outstanding real estate loans of credit institutions reached 2.74 trillion VND.

The conference aimed to actively implement Prime Minister 's Directive No. 993/CĐ-TTg, specifically review and assess the real estate market and real estate credit situation, and discuss and agree on positive measures to remove difficulties for real estate businesses and projects, as well as the difficulties and obstacles faced by commercial banks in real estate credit activities.

According to the State Bank of Vietnam's report, since the beginning of 2023, the banking sector has ensured liquidity and expanded credit limits from the start of the year; continuously adjusted down the State Bank of Vietnam's policy interest rates four times; and directed credit institutions to reduce costs to lower lending interest rates to support businesses in recovering and developing production and business activities.

Total outstanding real estate loans of credit institutions reached 274 trillion VND (Figure 1). — Total outstanding real estate loans from credit institutions reached 2.74 trillion VND. (Photo: DO)

Simultaneously, the State Bank of Vietnam (SBV) issued policies on restructuring loan repayment terms and maintaining loan classifications (Circular 02/2023/TT-NHNN); addressing difficulties in the bond market (Circular 03/2023/TT-NHNN); and managing credit to adequately and promptly meet capital needs for production and business, serving the legitimate living and consumption needs of people and businesses.

The State Bank of Vietnam also directed credit institutions to diversify banking products and services, simplify and publicly list loan procedures and processes in a transparent manner; and to promote the implementation of consumer credit programs, the Bank-Enterprise Connection Program in all 63 provinces and cities nationwide, and specialized credit conferences.

Regional credit conferences aim to promptly address difficulties and obstacles in accessing bank credit... As of October 31, 2023, credit to the economy reached over 12.8 million billion VND, an increase of 7.39% compared to the end of 2022.

Regarding the real estate sector, the State Bank of Vietnam encourages credit institutions to focus capital on affordable commercial housing, social housing, and housing for workers; at the same time, it controls credit risks in the real estate business sector to promote the healthy and sustainable development of the real estate market.

As of September 30, 2023, the total outstanding credit to the real estate sector of credit institutions reached VND 2.74 trillion, an increase of 6.04% compared to December 31, 2022, accounting for 21.46% of the total outstanding credit to the economy. Of this, real estate credit focused on consumption/self-use accounted for 64%, and outstanding credit for real estate business activities accounted for 36% of the total outstanding real estate credit.

However, in the first nine months of the year, real estate business credit grew at a higher rate than the overall credit growth rate and the same period last year. This shows that the solutions and efforts of the Government , the banking sector, and ministries, sectors, and localities in removing difficulties and obstacles for the real estate market are gradually proving effective. In addition, credit institutions have also actively implemented lending programs under the Government and Prime Minister's housing programs.

Currently, the real estate market still faces many difficulties and challenges, including many long-standing problems such as obstacles in the legal procedures related to land, planning, and construction investment; imbalances in supply and demand in various segments, with an oversupply of high-end housing and villas while social housing and affordable housing remain limited; and a sharp decline in market demand in some segments.

The financial capacity of businesses is limited and heavily reliant on external funding sources such as loans, bonds, and homebuyers; other capital raising channels have not been truly effective, especially the capital market (corporate bond market, stock market), which has several problems and has not developed proportionally to its role in providing medium and long-term capital for the economy; housing prices are high compared to the financial capacity and income levels of many people...

To contribute to promoting a healthy and sustainable real estate market, many opinions at the Conference suggested that comprehensive solutions should be implemented with the coordination of many ministries, sectors, and localities to continue addressing and resolving legal procedural obstacles in the real estate sector; developing the medium- and long-term capital market; and continuing to carry out the tasks assigned by the Prime Minister in documents such as Resolution 33/NQ-CP and Official Dispatch No. 993/CĐ-TTg.

Regarding the banking sector, in the coming period, closely following the directives of the Government and the Prime Minister, the State Bank of Vietnam will continue to proactively, flexibly, and synchronously manage monetary policy tools, coordinating closely with fiscal policy and other macroeconomic policies to control inflation, stabilize the macroeconomy, and contribute to promoting economic recovery.

In the coming period, the State Bank of Vietnam will continue to review and improve the legal framework for banking operations, proactively review, amend, and supplement policies, regulations, and laws on banking operations to suit practical realities.

Currently, the State Bank of Vietnam is urgently reviewing and assessing the implementation of Circular 03 and Circular 06 in order to promptly issue amendments and supplements that are consistent with market realities, increase access to credit for the economy, and ensure the safety of the system in accordance with the Prime Minister's directives.

The State Bank of Vietnam continues to direct credit institutions to implement solutions to improve access to capital for businesses and individuals; and continues to implement the policy of restructuring loan repayment periods and maintaining loan classifications to support customers facing difficulties, in accordance with Circular 02/2023/TT-NHNN.

At the same time, the State Bank of Vietnam will monitor and closely follow the implementation of the 120,000 billion VND Program to coordinate with the Ministry of Construction to consider and propose solutions to accelerate the implementation of the Program, contributing to promoting investment, construction, and purchase of social housing by the people.

The State Bank of Vietnam will coordinate with ministries and agencies to finalize legal regulations to support the sustainable development of the real estate market while controlling risks and ensuring the safety of credit institutions' operations. It will strengthen supervision and prevention of legal violations in the banking sector, ensuring the safety of credit institutions' operations.

Source