According to information from the State Bank of Vietnam (SBV), cited by the Ministry of Construction, credit outstanding for real estate business activities reached VND 1.27 quadrillion as of August 31, 2024, a 29.2% increase compared to the same period last year and a 1.9% rise from the previous month.
In terms of proportion, credit outstanding for other real estate investment activities led with 37%, followed by investment projects for urban area construction and housing development at 26%.
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Credit Outstanding for Real Estate Business as of August 31, 2024
Source: Ministry of Construction. Compiled by the author.
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The SBV report assessed the overall positive trend of the economy and predicted a 15% credit growth for the whole of 2024.
Regarding the bond issuance situation in the real estate sector, according to data compiled by the Vietnam Bond Market Association (VBMA) from the Hanoi Stock Exchange (HNX) and the State Securities Commission (SSC), the specific figures for bond issuance in the quarter are as follows:
As of August 2, 2024, there were 33 private placement bond issuances valued at VND 31,387 billion and 1 public issuance worth VND 395 billion in July 2024;
As of August 30, 2024, there were 43 private placement bond issuances valued at VND 37,995 billion and 2 public issuances worth VND 11,000 billion in August 2024;
As of September 30, 2024, there were 24 private placement bond issuances valued at VND 22,333 billion and 1 public issuance worth VND 1,467 billion in September 2024. Enterprises repurchased VND 11,749 billion worth of bonds before maturity, a 2% increase compared to the same period in 2023.
Based on the above data, the report from the Ministry of Construction concluded that real estate bond issuance increased significantly in the quarter, with the real estate group continuing to hold the second position, accounting for approximately 19%. In the remaining months of 2024, it is estimated that there will be about VND 79,858 billion of bonds maturing, mostly real estate bonds, amounting to VND 35,137 billion, or 44%.
Thus, in the third quarter of 2024, bond issuance by some real estate enterprises rebounded strongly, and the report considered it a crucial capital mobilization channel in the economy.
In addition to the capital raised through the bond channel, foreign direct investment (FDI) inflows into Vietnam in the first nine months also ranked the real estate sector second in terms of attracting investment. Specifically, FDI into Vietnam in the first nine months reached USD 17.34 billion, an increase of 8.9% over the same period, of which the real estate sector attracted USD 1.43 billion, accounting for 8.3%.
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