According to a report from the Ministry of Construction, as of May 31, the outstanding credit for real estate business activities reached over 1.2 million billion VND.

In addition, the real estate market has been further bolstered by funding through the bond channel. Since the beginning of the year, there have been 102 private bond issuances with a total value of 104.109 trillion VND and 10 public issuances worth 11.378 trillion VND. The real estate sector continues to maintain its leading position in raising capital through bonds.

In the second quarter, reports from several market research organizations indicated that the trend of issuing real estate bonds has increased again, helping companies alleviate pressure from debt maturities compared to the previous quarter.

Cash flow is strongly flowing into real estate

In June of this year, companies issued a total of 62 bond lots, raising 68 trillion VND, more than double compared to the same period in 2023. Of this amount, the construction and real estate sectors raised approximately 8 trillion VND, accounting for 12% of the total value.

According to the Ministry of Construction, as of June 20, the total registered foreign investment in Vietnam, including new registered capital, adjusted capital, and the value of foreign investors’ capital contributions and share purchases, reached nearly 15.19 billion USD, an increase of 13.1% compared to the same period last year. Notably, foreign direct investment (FDI) disbursement is estimated at 10.84 billion USD, up 8.2%, marking the highest disbursement in the first six months over the past five years.

Regarding new registered capital, 1,538 projects were granted licenses with a registered capital of 9.54 billion USD, an increase of 18.9% in the number of projects and a 46.9% increase in capital compared to the same period last year.

The real estate business sector attracted 1.89 billion USD, accounting for 19.9% of the total new registered capital. When considering both new registered capital and adjusted capital from previous projects, the total FDI in this sector reached 1.99 billion USD, accounting for 14.8%. In the first six months, FDI disbursed in the real estate sector reached 1 billion USD, accounting for 9.3% of the total capital.

These figures indicate that Vietnam continues to be an attractive destination, attracting a large amount of foreign direct investment.

Recently, the State Bank of Vietnam reduced the credit risk ratio for industrial real estate from 200% to 160%, encouraging banks to enhance lending in this segment. The strong circulation of cash flow is the clearest evidence that industrial real estate is “thriving” and leading among market segments. This also explains why foreign investment continuously flows into this segment, contributing to a positive impact and maintaining its central position in the real estate market.

Although industrial real estate shows outstanding potential, fierce competition in this field requires companies to continuously improve to seize opportunities and achieve success.

According to economist Đinh The Hien, the current capital for the real estate market has the characteristic of being large in scale. He further analyzed that, according to the State Bank of Vietnam, by July 31, interest rates for new and old loans continued to decrease, with the average lending rate at 8.3% per year by the end of June, down 0.96% from the end of 2023; the average deposit rate was 3.59% per year, down 1.08% from the end of 2023.

Mr. Hien believes that decreasing interest rates are not a long-term solution to attract capital into the real estate sector. “Bank credit capital cannot become the main source of capital for the real estate market in terms of term, borrowing costs, or collateral and asset binding,” he emphasized.