In the first half of 2022, capital flow to the real estate market were narrowed due to tight control of credit sources, and decline of the bond market. (Photo: chinhphu.vn)"This is a positive move to inject money into the domesticeconomy in the post-COVID-19 period, thereby energising the sectors, includingservices, production, business and real estate," said Su Ngoc Khuong,senior director of investment, Savills Vietnam.
This information has received special attention from businesses,investors and customers of the real estate market, according to the Savills Vietnam.
In the first half of 2022, capital flows to the real estate marketwere narrowed due to tight control of credit sources and the bond market'sdecline.
According to Khuong, the tightening of credit aimed to help theState prioritise capital for enterprises and projects in good operation. Inaddition, this move would limit bad credit, making it difficult for banks.
Vietnam is currently one of the countries with the fastesteconomic growth and recovery in the world in the post-pandemic period. That ishelping the country attract a lot of attention and foreign investment.
After the Government reopened international flights, economicsectors have benefited, especially tourism and hotels.
This factor has created favourable conditions for foreignenterprises to enter the Vietnamese market, according to Khuong.
However, there are still legal obstacles in many real estateprojects in Vietnam, causing hesitation for domestic and foreign enterprisesand investors.
Nguyen Van Dinh, Vice Chairman of the Vietnam Real EstateAssociation, said the real estate market is going through a period of restructuring.As a result, house prices will increase due to rising costs so liquidity willdecrease. As a result, investors tend to be more cautious in their investments.
If the difficulties in the property market are not removed, thismarket may have a long freezing period, causing difficulties for enterprises.Therefore, it is necessary to have supportive policies for the market'srecovery process, said Dinh.
There has been an association between the capital and real estatemarkets. But it has lacked synchronous development, so the capital market hasnot had timely support for the real estate market when the channels supplyingcapital for the property market have been congested.
The Prime Minister has issued Directive 13, including directionsof not hindering enterprises with good business results in mobilising capitalfor recovery and development. This is extremely meaningful because real estateenterprises have faced bottlenecks in getting capital, Dinh said.
Economic expert Dinh Trong Thinh told the Lao dong (Labour) newspaper that it isvery necessary to extend credit growth targets for some credit institutions inthe current context.
In the past, many enterprises faced difficulties due to lack ofcapital when the bank stopped disbursing due to running out of credit room,according to Thinh.
He said that the economy is a strong recovery, and increasing thecredit growth target will reduce pressure on capital at the enterprises.
Meanwhile, Le Viet Hai, Chairman of Hoa Binh Group, also said thatnew information about credit room is very interesting in the market. Theconstruction industry will have jobs when the real estate market warms up.
Investors cannot borrow capital to operate their businesses andnot pay debts to contractors, leading to a series of difficulties. However,with good projects and reputable investors, there is no reason to control themtightly, Hai said.
He said it is also necessary not to tighten credit for home buyerswith real housing needs to boost the market.
In the context of many changes in credit regulations for the realestate industry, Khuong said that investors trust in calling for capital viamerger and acquisition (M&A), and they are looking for internationalM&A consulting firms to get support in connecting with the right partners.
For the M&A trend of foreign investors in Vietnam's realestate market at present, Khuong said this is a great opportunity for domesticenterprises to improve their capacity to develop projects and attract newcustomers brought by foreign investors.
"In addition, for listed companies, this will assist them inattracting foreign capital on the stock exchange. Small-sized companies withlow financial capacity need to have a strategy to restructure the investmentportfolio and ensure the completion of the project's legal procedures,"Khuong said./.
VNA
