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Speaking at a forum last Friday, Nguyễn Quốc Hiệp, chairman of the Việt Nam Association of Construction Contractors, said the market would continue facing prolonged hurdles such as a lack of access to capital, credit tightening, legal bottlenecks and delays in bond payments.

A new government resolution has tasked the State Bank of Vietnam (SBV) with overseeing the execution of a $5 billion lending scheme and coordinating with commercial banks to ease the burdens in the property sector and promote development.

Speaking at a forum last Friday, Nguyễn Quốc Hiệp, chairman of the Việt Nam Association of Construction Contractors, said the market would continue facing prolonged hurdles such as a lack of access to capital, credit tightening, legal bottlenecks and delays in bond payments.

Real estate developers have suggested that the State Bank of Vietnam increases credit room soon to inject capital into the economy and create conditions for property businesses to restructure and develop this year.

Under the decision, organisations, units, businesses, households, and individuals that lease land and water areas from the State in the city will enjoy a 30 per cent reduction in rent. This regulation does not apply for land and water area rents owed in the years before 2022.

“Industrial real estate is an area with great promise, and a growing number of investors are entering this arena. However, we have a severe lack of units specialised in the administration and operation of industrial zones (IZs),” said Nguyen Dinh Nam, founder and general director of IPA Vietnam Corporation.

The demand for industrial land for rent in Vietnam will remain high this year thanks to policies promoting investment in the country, experts said. Due to short supply, rental prices for industrial land are expected to continue to rise by an average of 8-20% year-on-year in 2023, depending on the region, according to a report by the SSI Securities Corporation.

The real estate sector ranked second in the list of industries attracting FDI in 2022, with more than US$4.45 billion, accounting for 16.1% of total registered investment capital. According to the Foreign Investment Agency, Ministry of Planning and Investment, in the past year, foreign investors poured funds into 19 industries out of a total of 21 national economic sectors.