Want to be in the loop?
subscribe to
our notification
Business News
PROPERTY MARKET INFORMATION MUST BE ADEQUATE, ACCURATE
Several property developers voiced their fears in response to an announcement by the HCM City watchdog of publicising the names of developers who have mortgaged their unfinished housing projects. The developers said that inadequate mortgage information was causing confusion and misunderstanding among home buyers and seekers.
Announcing projects which were mortgaged was a drastic move to improve the transparency of the housing market, Le Hoang Chau, president of the HCM City Real Estate Association said. "However, this is creating an erroneous impression that developers named in the list do not have sufficient financial capacity," Chau said.
Châu said that in Viet Nam, property developers relied significantly on banking credits to develop their projects.
Tran Ngoc Quang, general secretary of the Viet Nam Real Estate Association, estimated that more than 70 per cent of capital for the realty market came from banking loans.
Le Hung Manh, chairman of Gia Hoa Company Ltd, who was included in the list, said that many of their buyers were worried by the announcement of the HCM City Department of Natural Resources and Environment as the developer had earlier informed its buyers that it did not borrow money from banks.
Hung said that his company's project was in the list as it was mortgaged to apply for a bank guarantee to undertake transactions for an unfinished property, which was compulsory under the current regulation.
Mortgaging projects for a guarantee to transact unfinished products was beneficial to buyers, lawyer Pham Van Minh from Minh Lawyers said.
According to Chau, even then, there were violations by property developers who used banking loans for incorrect purposes, undermining the confidence of buyers.
The association urged banks to tighten supervision towards the use of credit provided to developers as well as mortgaged assets.
In addition, the Department of Natural Resources and Environment should clarify the purpose of mortgaging each project to prevent confusion, the association said.
Source: VIR
Related News
![Card image cap](/uploads/news/bn-01.jpg)
VIETNAM INTENSIFIES E-COMMERCE TAX SCRUTINY
The department plans to offer guidance for and hold direct dialogues with e-commerce taxpayers to ensure compliance. Efforts will also include updating the e-commerce database, conducting risk analysis, and leveraging artificial intelligence (AI) to manage data and issue alerts.
![Card image cap](/uploads/news/Security.jpg)
2025 PIVOTAL FOR STOCK MARKET UPGRADE EFFORT
The Ministry of Finance (MoF) is expected to soon publish the entire content of the draft circular amending and supplementing four circulars on transactions, registration, depository, and clearing, as well as operations of securities companies and information disclosure. This move, along with feedback and explanations, aims to meet the criteria for upgrading Vietnam’s stock market.
![Card image cap](/uploads/news/eco2.jpg)
FOOTWEAR EXPORTS SEEN REACHING US$27 BILLION THIS YEAR
This optimistic forecast reflects the industry’s efforts to expand and diversify its markets. Lefaso indicated that Vietnam’s footwear sector will concentrate on traditional markets like the U.S. and the European Union, alongside markets with free trade agreements to maximize opportunities.
![Card image cap](/uploads/news/Eco3%20%281%29.jpg)
CAPITAL FLOWS STRONGLY INTO INDUSTRIAL REAL ESTATE
Industrial real estate has had easier access to bank credit since July, when the State Bank of Vietnam (SBV) reduced the credit risk coefficient for industrial real estate from 200 per cent to 160 per cent, encouraging commercial banks to lend to more projects in the segment.
![Card image cap](/uploads/news/Eco4.jpg)
GDP GROWTH REACHES 6.42 PC IN FIRST HALF
Vietnam's economy grew by 6.42 pc in the first six months of 2024, slightly lower than the figure of 6.58 pc in the same time of 2022 within the 2020-2024 period.
![Card image cap](/uploads/news/FDI.jpg)
FDI INFLOW INTO VIETNAM REACHES NEARLY 15.2 BILLION USD
Vietnam attracted nearly 15.2 billion USD in foreign direct investment (FDI) in the first six months of this year, a year-on-year increase of 13.1 per cent, according to the General Statistics Office.