Vietnam’s real estate credit increases despite slow market recovery

HANOI, Nov. 15 (Xinhua) — Vietnam’s real estate business credit and the proportion of individual corporate bond issuance have continued to increase sharply despite supply and transactions in the property market showing little improvement, Vietnam News reported Friday.
According to the State Bank of Vietnam, real estate credit in the third quarter reached 1.3 quadrillion Vietnamese dong (51 billion U.S. dollars), an increase of 29.2 percent over the same period last year.
The credits for construction, repair and home buying only accounted for over 125.8 trillion dong (4.9 billion dollars) while the remaining were loans for real estate business activities, said the report.
According to the country’s Department of Housing and Real Estate Market Management, trading bonds by some real estate enterprises increased sharply again in Q3.
Financial reports of Vietnamese banks in Q3 showed an upward trend of the real estate credit.
Some banks posted record-high growth in real estate credit, such as Vietnam International Commercial Joint Stock Bank (up 275 percent) and Kien Long Bank (up 172 percent), compared to the beginning of the year. ■