At the end of September outstanding debt in the real estate industry was up 9.15 percent since the end of 2023 and this is raising concerns that risks that have been prevalent over the last couple of years in the housing industry may be being transferred to the banking industry.
24 Hour Money is carrying comments from Le Xuan Nghia, a member of the National Monetary Policy Advisory Council, in which he has suggested that growing real estate debt is putting the safety and sustainability of the banking industry at risk.
REA Times is carrying similar comments from Dinh The Hien, an economic expert, who also suggests that this growing debt could also indicate that Vietnam’s banks have relaxed their lending criteria (notable in that this would obviously increase the risks in these loans themselves).
Both articles seem to stem from a National Economics University policy paper submitted to the Prime Minister on November 1.