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REVIEW of FINANCE - Issue 1, 2023

SOLUTIONS TO SAFELY, HEALTHILY AND SUSTAINABLY

DEVELOP THE VIET NAM'S REAL ESTATE MARKET

DANG VAN SANG

Abstract: The real estate market makes an important direct contribution to economic growth and has a spillover effect on the
development of many industries and sectors in the national economy. However, in recent years, due to many domestic and foreign
factors, the real estate market has faced many difficulties and challenges. In that context, finding solutions to remove difficulties and
bottlenecks of the real estate market in the current context is to remove bottlenecks and open up resources for developing economy as
well as release the debts of the financial system in unfinished real estate projects. The paper assesses the current situation of the real
estate market in Viet Nam, thereby making some recommendations to promote the safe, healthy and sustainable development of the
real estate market, contributing to socio-economic development of the country.

Keywords: Real estate market, real estate credit, business
Received: January 6 , 2023 newly licensed projects nationwide with a scale of 5,526
th
th
Revised: February 28 , 2023 apartments; 114 projects with 6,196 apartments completed
Accepted: March 4 , 2023 construction; 27 projects with 8,245 apartments eligible to
th
Introduction sell houses in the future.
For workers' housing, there are 02 newly licensed
The real estate market plays a very important role in projects nationwide with a scale of 1,729 apartments; 01
the national economy and is closely linked with many project with 32 apartments completed construction; 04
manufacturing industries. Removing difficulties for the projects with 2,328 apartments that are eligible to sell
real estate market will also help open up production and houses in the future.
business activities in the economy. The number of successful transactions in the quarters
In recent years, having experienced high growth, but in 2022 is not stable. The number of successful transactions
now Viet Nam's real estate market is facing a number of of apartments, individual houses, land plots increased
difficulties and obstacles in terms of capital, supply..., highest in the second quarter, then decreased and the
affecting the sustainable development of real estate market. lowest in the fourth quarter. Prices of residential real
The paper evaluates the current situation of the estate and land plots in 2022 continuously increased in
real estate market in Viet Nam, thereby making some the first and second quarters; slowed down in the third
recommendations to promote the safe, healthy and quarter and decreased in some projects but not much in
sustainable development of the real estate market, the fourth quarter.
contributing to the prosperous development of country in About credit for the real estate sector
the context of international integration.
The real estate market is alway a channel to absorb
The current situation of the real estate and hold huge capital source. In the field of banking,
market in Viet Nam credit for the real estate sector has always grown quite

About market supply high in the past year.
According to a report by the State Bank of Viet Nam,
According to the Ministry of Construction (2022), in the outstanding loans for the real estate currently account
recent years, especially in 2022, the supply of real estate for about 21.2% of total outstanding credit. If adding
and housing is scarce. The structure of housing products outstanding corporate bonds that real estate businesses
is inclined towards the mid-high-end housing segment, have issued, total real estate debt is currently equal to
meanwhile housing for low-income people is lacking. about 36% of GDP, equivalent to the ratio of real estate
The whole country has 126 projects with 55,732 debt to GDP in 2012 (about 36-40% of GDP). In particular,
licensed apartments (the number of projects is about 52.7% in 2022, the overall credit of the economy increased by
compared to 2021); there are 466 projects with 228,029 14.17%. The proportion of real estate outstanding credit
apartments under construction (about 47.7% compared on the total outstanding loans of the economy is quite high
to 2021); There are 91 projects with 18,206 apartments at 21.6% and the absolute value is VND 258,000 billion. In
completed construction (about 55.2% compared to 2021). which, over 60% is credit for housing needs, mainly the
According to the Department of Construction (2023) in high-value segment, and more than 30% is loans for real
the whole country, for social housing projects, there are 09 estate business needs.

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