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Real estate credit growth figures show Vietnam’s housing sector still struggling

At the end of February credit issued to Vietnam’s real estate sector had increased by about US$813.2 million, however, the residential sector recorded a credit contraction of US$78.6 million. Outstanding loans for off-the-plan houses also fell by US$648.3 million.

Conversely, gains were made in industrial parks and export processing zones, restaurant and hotel projects, and land use rights, with US$51 million, US$36.2 million, and US$171.5 million respectively. However, the bulk of the increase was found in other real estate businesses and investments, which increased its credit allocation by US$733.8 million. It’s not clear what falls into this last category.

Vietnam’s real estate industry has been struggling for the last two years in the wake of the Evergrande crisis in China in 2022. this led Vietnam to take a long hard look at its own real estate industry in which it found the prevalent misuse of investor funds, particularly those acquired through the bond market, and that a number of real estate firms were grossly over-leveraged. These revelations then went on to spook investors and consequently, at the beginning of 2023, it had become very challenging for real estate firms to access capital.

This loan data would suggest that many of those challenges still exist and there might be some way to go until they are resolved.

See also: Vietnam’s Real Estate Market Recovery 2024: Unpacked


Data is from the Ministry of Construction’s quarterly real estate report.

Vietnam real estate loans by type, February 2024

Urban construction projects and housing developments305,650303,572-2,078
Industrial parks and export processing zones77,03378,3491,316
Tourism and resort projects43,57043,393-177
Restaurant and hotel projects59,58160,502921
Land use rights75,50979,8734,364
Other real estate businesses and investments365,669384,34318,674
Houses off-the-plan35,66019,126-16,534



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