Business News

Circular No.06/2023/TT-NHNN, which amends and supplements a number of articles of a 2016 circular that provided operations for loans from credit institutions and foreign bank branches to customers, has new regulations on restrictions on real estate lending.

At a government press conference on July 4, Deputy Minister of Construction Nguyen Tuong Van said based on recent reports sent by the local authorities of Ho Chi Minh City, Hanoi, Danang, Haiphong, Can Tho and Dong Nai to the government’s working group on boosting real estate, three key problems in the sector continue to be institutional implementation, bonds, and capital management.

According to Pham Truong Tam, director of Hung Yen Industrial Zones Management Authority, in the first half of this year, the authority received 26 projects, including eight domestic and 18 international ones, worth $272.6 million. Besides that, 25 existing projects acquired $102.1 million in supplemental capital during the period.

In the first quarter of 2023, the industrial park real estate market recorded a slow growth in the eligible land fund for rent, up 2.1 per cent over the end of 2022. The gain came from the addition of land for lease from industrial zones in Long An, Bac Ninh, and Hai Duong provinces.

Minister of Planning and Investment Nguyen Chi Dung, speaking at a meeting of the National Assembly on June 1 to discuss the current socioeconomic situation, said a recent report from the ministry (MPI) on business registration suggested that the real estate business continues to be the most adversely affected sector.

According to a report by DKRA Vietnam, the supply of villas and town houses across the country continued to decrease from the end of the second quarter of 2022. Specifically, in April only two projects were opened for sale, providing 12 apartments to the market, down 69 per cent from the previous month and down 98 per cent compared to the same period last year.

A new government decree is expected to help remove difficulties for the domestic leisure property market, which is experiencing a 10-year low in demand, experts have said. Decree No. 10/2023/ND-CP on amending and supplementing some articles of the decree guiding the implementation of the Land Law has come into force from May 20, 2023.

Domestic property developers are looking to sell assets and shares to deal with debts, restructure, maintain cash flow and keep operations going, according to industry experts.