As Vietnam’s economy powers on when Vietnam pulls off Asia’s fastest growth, economists advised that the government should take advantage of the golden time to have flexible policies.
The State Bank of Vietnam (SBV) has never issued any documents or statements ordering credit for real estate be tightened, Deputy Governor Dao Minh Tu said on February 8.
Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong has underscored that credit governance must be prudent to help curb inflation and stabilise the macro-economy when responding to legislators’ concern about credit for real estate.
By August 2022, credit for the real estate sector increased by 15.68 percent compared to the end of 2021, while credit for investment and securities trading decreased by 35.07 percent, according to a report by Ms. Nguyen Thi Hong, Governor of the State Bank of Vietnam, to the National Assembly on the results of the implementation of Resolution No.62/2022/QH15 and Resolution No.63/2022/QH15.
After the recent increase in credit limit, the State Bank of Vietnam (SBV) has granted 13.6 percent of the total 14 percent credit room in 2022. The SBV continues to prioritize inflation control and macroeconomic stability, maintaining low lending interest rates to support businesses and economic recovery.
Bank credit increased robustly at 4.03 percent in the first quarter of 2022, 2.7 times higher than the same period last year. This is the highest growth rate in the past five years.
The real estate market has spectacularly surpassed two years under the impacts of the Covid-19 pandemic. While many fields have suffered because of the epidemic, the real estate market has robustly grown with abundant capital inflows.
The State Bank of Vietnam (SBV) has recently requested credit institutions and foreign bank branches to strictly control the growth rate of credit outstanding balance and the credit quality of sectors with potential risks or heavily affected by the Covid-19 pandemic, especially the real estate credit.
The fact that savings interest rates are at the lowest level in history has made the cash flow shift to other investment channels, including real estate. This is also one of the reasons that cause land fever in many provinces across the country.
