In the context of low capital absorption in the economy, coordinated solutions to maintain stability, growth, and development across key markets, including the real estate market, are crucial for economic growth.
On the afternoon of September 5, Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam - Ho Chi Minh City Branch, reported that as of the end of July 2024, total real estate credit in the city had surpassed VND1quadrillion (VND1.019 quadrillion), accounting for 27.6 percent of total outstanding credit, up 5.5 percent compared to the end of 2023.
This growth outpaced the city's overall credit growth of 3.9 percent over the first seven months of the year. Real estate credit showed consistent improvement, with each month surpassing the previous, primarily driven by housing loans (including social, commercial, and other types of housing), which comprised 57 percent of total real estate credit in the city. Notably, loans for social housing exceeded VND2.54 trillion, a 78 percent increase from the end of last year. Additionally, credit for business-related real estate activities—including loans for infrastructure development in industrial parks and export processing zones (IPs and EPZs), as well as office and building construction, hotels, and resorts—saw significant growth. Specifically, outstanding loans for IP and EPZ infrastructure development reached VND48.39 trillion, up 18.4 percent compared to the end of 2023, while loans for office buildings totaled VND24.041 trillion, up 14 percent.
Lenh emphasized that despite ongoing economic challenges, coordinated measures to stabilize and grow markets—such as those for goods, finance, and real estate—are vital for economic development. The recovery of the real estate market, in particular, will help generate cash flow for various production, business, and service sectors, while directly impacting real estate credit, both nationwide and in Ho Chi Minh City.
