The State Bank of Việt Nam (SBV) has asked control over real estate loans of credit institutions to be enhanced, especially in areas showing signs of land price fevers.
Last month, property developer Vingroup unveiled plans to sell 20 million non-convertible bonds at VNĐ100,000 (US$4.39) each in two phases without any covered warrants or guaranteed assets.
The country’s credit growth target of 14 per cent set for this year, the same rate as last year, was reasonable and achievable, economists said.
Analysts believe banking credit growth will ease off next year, but since lending activities will mainly be focused on the economy, growth will not be affected.
Credit growth in the next three to five years is forecast to be around 14 per cent per year, lower than the average rate of 18.1 per cent in the 2015-17 period.
Chu Anh Tuấn, deputy general director of property developer Hà Đô Group, said recently his company expects consolidated profit after tax to be VNĐ700 billion (over US$30.43 million) this year.
The HCM City Real Estate Association has recently proposed that the central bank should allow lenders to use 45 per cent of their short-term deposits for long- and medium-term loans next year instead of 40 per cent as it has mandated.
Real estate lending continued to remain high at more than 10 per cent of the total outstanding loans in several banks.