HCM CITY — With banks tightening credit to the property sector, developers should look at the stock market for capital, experts told a workshop on “Potential and opportunities for investment in property stocks on Friday.

Economist Bùi Quang Tín said there were 60 listed property firms, including giants like Vincom, Van Phu Investment VPI, Everland EVG, and Sài Gòn Co.op.

The stock market would be a good source for developers since they usually need long-term funds and large amounts and banks were squeezing credit the sector, he said.

The State Bank of Việt Nam (SBV) has reduced banks’ use of short-term funds for medium- and long-term loans from the current 45 per cent to 40 per cent from January 1 next year, he said.

“Many property firms have achieved good results this year. Their upbeat business performance has helped drive property stocks up.”

Besides, FDI would also be another source of funding for the property market with Việt Nam currently being a magnet for foreign investment, he said.

FDI in the property market has been on the rise for the last three years. In the first six months of this year it surpassed US$5.5 billion, accounted for 25 per cent of total foreign investment and was the second largest beneficiary after manufacturing, he said.

Sử Ngọc Khương, investment director at Savills Việt Nam, said capital was not that big a problem for property developers who can raise it from other sources even if banks refuse them since they have had experience dealing with credit problems in 2008-09.

“The story of property firms now and in the next two to three years is about land. Without clean lands, they will have no place to build new projects or offer new products to the market.”

Without lands, they would not have the chance to tie up with foreign firms either, he added. — VNS