The Deputy Minister of Construction expects the State Bank to direct commercial banks to create favorable conditions to support real estate businesses to borrow capital, especially trying to further disburse unfinished projects, projects with full juridical.
At an online conference on credit work for the real estate sector held by the State Bank of Vietnam (SBV) on the morning of February 8, Deputy Minister of Construction Nguyen Van Sinh said that the Prime Minister also assigned the Ministry of Construction to held a conference to promote the real estate market in February.
According to the Deputy Minister, in the last 3 years, real estate credit balance has increased continuously. Moreover, the directives of the Government and the SBV do not require tightening of real estate credit, but the SBV only requires strict control of lending for this sector. In the context of the difficult market in the last months of 2022, the State Bank has also proposed to open the credit room to support lending.
At the conference, Deputy Minister of Construction Nguyen Van Sinh said: This is a very important and meaningful conference. The Ministry of Construction is also expected to hold a conference in February to remove difficulties for the real estate market. Real estate is a specific field, it takes a lot of time to invest in a project. The real estate sector uses a large amount of capital to implement a project.
In the past time, real estate enterprises have used many different sources of capital, including their own capital, capital through the issuance of corporate bonds, capital through the stock market, etc. Real estate enterprises have actively used quite effectively in mobilizing capital. capital movement. Therefore, real estate has grown rapidly in recent years, with many completed projects creating many places for people to live.
Mr. Sinh raised the issue of bank credit for the real estate sector. Recently, when the Prime Minister’s Working Group worked with real estate enterprises, it can be seen that the State Bank has actively supported real estate enterprises in recent times. In the last 3 years, credit for real estate has always increased year by year. The Government and the State Bank have never directed to tighten real estate credit. Only the direction of strict control of credit for real estate loans and we completely agree with the policy of lending to the right audience, avoiding the use of capital for the wrong purpose.
At the end of 2022, the State Bank has loosened the credit room and the MOC highly appreciates this move. However, in the fourth quarter of 2022, real estate enterprises faced many difficulties.
The Government and the Prime Minister have promptly directed and decided to establish a Working Group to guide and remove difficulties and obstacles for businesses and the real estate market, thereby seeing that businesses are facing many difficulties in disbursement, many contractors failed to implement the project. Many businesses stop projects, let employees quit.
The supply of real estate has decreased, but credit is increasing because besides the tight control of credit, the difficulties in the bond market have also led to difficulties for businesses over the past time.
The Ministry of Construction is presiding over amending the Law on Real Estate Business to fix policies and promote a more stable and healthy real estate market in the coming time. Regarding the solution of how to access credit in a convenient way, today’s conference has highlighted many solutions.
The Ministry of Construction suggested not only from banks but also businesses need to study the regulations, conditions and criteria for lending to make it right. It is necessary to have collateral, the project has enough legality, so the bank can rest assured to disburse because they must also comply with the Law.
Enterprises should also structure their business products, review projects to ensure their resources and ability to execute. It is recommended that enterprises continue to review and follow projects to implement more effectively.
I hope the SBV directs commercial banks to create favorable conditions to support real estate businesses to borrow capital, especially trying to continue disbursing unfinished projects and projects with full legality.
It is really difficult for businesses in the past time, it is recommended that banks work with businesses to restructure bad debts, to support businesses because if they turn to bad debt, there will be many problems for businesses. Enterprises, difficulties will continue to be difficult for businesses.
In the coming time, it is expected that the banking industry will give priority to focusing on credit development for social housing, housing for workers, renovating old apartments, and affordable housing to better meet the needs of the people.
Credit is still pouring into real estate
At the conference, Deputy Governor of the State Bank Dao Minh Tu once again affirmed that the operator does not tighten real estate credit and considers this industry as equal as other fields.
The State Bank said that it still provided credit for real estate with high growth and large outstanding loans last year. With feasible projects and loan options, banks lend according to regulations. The operator only strictly controls credit risk with some high-risk real estate segments such as speculative, speculative large business, leading to a bubble.
Standing Deputy Governor of the State Bank Dao Minh Tu. Photo: DK.
According to data from this agency, real estate credit outstanding by the end of 2022 is about VND 2.58 million billion, an increase of more than 24% compared to the end of 2021 and is one of the areas disbursed with an increase of 24%. tallest. By the end of 2022, real estate accounted for 21.2% of total outstanding loans to the economy – the highest level in the past 5 years.
In which, capital mainly focuses on consumption/self-use needs (accounting for nearly 69%). Loans for real estate business accounted for just over 31% (up 11.5% compared to the beginning of the year).
In terms of real estate segment, outstanding loans disbursed for housing needs accounted for more than 62%, land use rights accounted for nearly 21%, industrial parks and export processing zones accounted for nearly 2.7%, other was 13.8% .
In fact, in 2022, credit growth will accrue to the end of the first 6 months of 2022 with the strongest growth in a decade. Many banks have used up the allocated limit while not being granted a new “room”, making it difficult for many businesses and people to access capital in the last months of the year.
Currently, according to reports from banks, the Ministry of Construction and the Ho Chi Minh City Real Estate Association, the difficulties and problems of the real estate market focus mainly on issues of legal procedures (accounting for 70% of cases). difficulties and obstacles of the market), investment procedures, bond capital sources. Therefore, to remove it, according to the State Bank, it is necessary to synchronously deploy solutions from the relevant ministries and branches.
In the coming time, the State Bank will still administer monetary and credit policies to both ensure the safety of the system and contribute to economic growth.