Real estate recovery reflects optimistic outlook for Vietnam: economists

By Quang Tuyen, Minh Hue
Wed, March 27, 2024 | 10:50 pm GMT+7

Vietnam was well placed to seize growth opportunities and tap global trends, leading economists said at a forum on Tuesday, citing real estate market recovery as an indicator.

The real estate market is recovering and showing signs of bustle after a long period of hibernation, they noted.

Experts share views on the real estate market at a forum on March 26, 2024. Photo by The Investor/Quang Tuyen.

Experts share views on the real estate market at a forum on March 26, 2024. Photo by The Investor/Quang Tuyen.

Dr. Vo Tri Thanh, director of the Institute for Brand and Competitiveness Strategy, said: “The most difficult period of Vietnam's economy has passed and now is the time we need to seize opportunities to overcome challenges and go ahead".

He pointed out a series of "unprecedented" positive points including the recession risk of Vietnam's largest trade, finance and investment partners receding to a low level and falling inflation easing pressures on monetary policy.

In addition, the trend towards the digital and green economy alongside the application of advanced technologies is very strong. Meanwhile, Vietnam is the biggest beneficiary of shifts in the global supply chain.

Vietnam has been able to maintain stable policy interest rates; its financial and monetary conditions are improving, with exchange rates, despite fluctuations, still under control and the VND devaluation at a low level of only 3% or less.

In the first two months of the year, FDI disbursement grew nearly 10% year-on-year, an unprecedented figure, and the disbursement of public investment also saw positive signs, Thanh noted.

Dr. Can Van Luc, chief economist with BIDV bank and member of the National Financial and Monetary Policy Advisory Council, said Vietnam’s real estate market is enjoying several important supporting factors this year.

The world economy is recovering, inflation is falling rapidly and interest rates have begun reducing. Vietnam’s outlook for 2024-2025 is expected to improve with inflation within the target, slightly decreasing interest rates and stable exchange rates.

“The most difficult period for businesses to fulfil financial obligations has passed, while their capital access has been maintained," he said, adding that legal problems are gradually being resolved, mechanisms perfected and confidence recovering, albeit slowly.

"Capital mobilization has become easier and business-investment resources are more abundant thanks to lower lending interest rates and better market liquidity," he noted.

Traditional growth drivers are rebounding, Luc said. For example, the stock market has gained 13% from the beginning of 2024, with strong recovery seen in many industry groups that have experienced negative growth the previous year.

Luc also pointed out many signs indicating gradual recovery of the real estate market.

"Consumer, business and investment confidence is returning. The 2024 credit growth target of 14-15% looks feasible and the domestic corporate bond market is starting to recover."

However, Luc cautioned that the Vietnamese economy still face many challenges, including the external risks of slow world economy growth, which would lead to slow recovery of exports and investment.

"Moreover, private investment and consumption growth remains low," he said.

Domestically, public investment disbursement is yet to see a breakthrough. Businesses still face many difficulties relating to legal procedures and financial obligations, high input costs and slow recovery in orders.

The restructuring of listed businesses and credit institutions face many challenges and risks to the corporate bond and real estate markets still linger.

There are delays in building mechanisms for new fields like digital economy, green economy and circular economy.

A fear of mistakes still prevail among civil servants, hampering efficient discharge of their responsibilities.

The BIDV chief economist recommended that businesses restructure activities to control risks related to cash flow, interest rates, and exchange rates; proactively learn about and access fiscal, tax and fee support programs and packages; diversify capital sources, markets, partners and supply sources; promote digital transformation, green transition and energy transition; and take advantage of opportunities from the upgrading of Vietnam's relations with the U.S., Japan and Australia.

"Investors should diversify investment portfolios, limit herd behavior, accumulate knowledge and experience, and use professional services of financial intermediaries," he added.

Comments (0)
  • Read More
Central Vietnam province reviews investment proposal for thermal power project after Thai EGATi pullout

Central Vietnam province reviews investment proposal for thermal power project after Thai EGATi pullout

Authorities in the central province of Quang Tri are evaluating a proposal from Power Generation JSC 1 (EVNGENCO 1), a subsidiary of state utility Vietnam Electricity (EVN), to take over the Quang Tri thermal power plant project, following the withdrawal of Thai investor EGATi.

Energy - Tue, September 16, 2025 | 1:44 pm GMT+7

Amata to sell stakes worth $46 mln in Vietnam units to Novaland-tied buyers

Amata to sell stakes worth $46 mln in Vietnam units to Novaland-tied buyers

Amata VN, the Vietnam arm of Thailand’s leading industrial park developer Amata, has approved a plan for its subsidiary Amata City Long Thanh Urban JSC (ACLT) to sell its remaining 51% stakes in two entities to local developer Novaland-linked buyers.

Real Estate - Tue, September 16, 2025 | 12:19 pm GMT+7

Vietnam already meets FTSE's criteria for stock market status upgrade: Finance Minister

Vietnam already meets FTSE's criteria for stock market status upgrade: Finance Minister

Vietnam has fulfilled the criteria for a stock market status upgrade by FTSE Russell through reforms aimed at facilitating foreign investment inflows into its market, said Minister of Finance Nguyen Van Thang.

Economy - Tue, September 16, 2025 | 9:36 am GMT+7

Banks should be allowed to distribute, invest in mutual fund certificates: Vietnam's finance ministry

Banks should be allowed to distribute, invest in mutual fund certificates: Vietnam's finance ministry

The Ministry of Finance is proposing a key reform that would allow commercial banks to invest in and distribute mutual fund certificates, as part of a broader plan to restructure the investor base and foster the development of Vietnam’s fund management industry.

Finance - Tue, September 16, 2025 | 8:00 am GMT+7

E-commerce boom a major driver of Vietnam's packaging paper industry growth

E-commerce boom a major driver of Vietnam's packaging paper industry growth

Vietnam's paper packaging industry is entering a period of strong growth, with an average annual growth rate forecasted at 10% until 2030.

Companies - Mon, September 15, 2025 | 10:20 pm GMT+7

Vietnam needs support from UK in developing international financial center: Deputy PM

Vietnam needs support from UK in developing international financial center: Deputy PM

Permanent Deputy Prime Minister Nguyen Hoa Binh has called on the UK and the City of London to continue supporting and accompanying Vietnam in promoting and introducing its international financial center (IFC).

Finance - Mon, September 15, 2025 | 10:12 pm GMT+7

Vietnam enforces 8% capital adequacy ratio for banks from Sept 15

Vietnam enforces 8% capital adequacy ratio for banks from Sept 15

Commercial banks and foreign bank branches in Vietnam must maintain a minimum capital adequacy ratio (CAR) of 8%, including at least 4.5% in Tier 1 core capital and 6% in Tier 1 capital, starting from September 15.

Banking - Mon, September 15, 2025 | 10:04 pm GMT+7

Tool for wood traceability management debuts in Vietnam

Tool for wood traceability management debuts in Vietnam

The Vn-WoodID application has been officially launched in Vietnam, becoming a key tool contributing to wood traceability.

Companies - Mon, September 15, 2025 | 10:00 pm GMT+7

Sun Group, US Embassy foster aviation-hospitality cooperation

Sun Group, US Embassy foster aviation-hospitality cooperation

Sun Group, in collaboration with the US Embassy in Vietnam, hosted the US – Vietnam Aviation Partnership Roundtable on September 12, bringing together 15 leading American corporations in aviation, technology, and financial services, opening up opportunities to position Phu Quoc as a new aviation and tourism hub in the region.

Companies - Mon, September 15, 2025 | 9:54 pm GMT+7

Vietnam tops Thai giant SCG’s overseas markets with 9% revenue contribution in H1

Vietnam tops Thai giant SCG’s overseas markets with 9% revenue contribution in H1

Vietnam remained the largest overseas market for Thailand’s Siam Cement Group (SCG) in the first half of 2025, contributing 9% of consolidated sales.

Companies - Mon, September 15, 2025 | 8:10 pm GMT+7

Central Vietnam to have new airport Mang Den

Central Vietnam to have new airport Mang Den

Procedures to adjust Vietnam's airport system planning, including the addition of Mang Den Airport in central Vietnam, are being proceeded, according to the Ministry of Construction.

Infrastructure - Mon, September 15, 2025 | 5:16 pm GMT+7

Vietnam's government seeks to position country as 'regulated hub for digital assets in Asia': Dragon Capital

Vietnam's government seeks to position country as 'regulated hub for digital assets in Asia': Dragon Capital

The Vietnamese Government has advanced the regulation of digital assets, with a resolution launching a five-year pilot framework for issuance and trading. This framework signals the Government’s intent to position the country as a regulated hub for digital assets in Asia, which could attract new capital inflows, write Dragon Capital analysts.

Economy - Mon, September 15, 2025 | 2:20 pm GMT+7

Agribank introduces sizable $4.17 bln preferential credit package

Agribank introduces sizable $4.17 bln preferential credit package

Right from the beginning of 2025, Agribank launched a substantial preferential credit package worth VND110 trillion ($4.17 billion) to support individual customers.

Companies - Mon, September 15, 2025 | 1:32 pm GMT+7

'Precious space' in Vietnam's monetary policy

'Precious space' in Vietnam's monetary policy

The Federal Reserve's continued cuts in 2025, with the most recent in September, are considered a valuable policy "space" for the State Bank of Vietnam (SBV) to maintain low interest rates to support growth without having to worry too much about exchange rates.

Economy - Mon, September 15, 2025 | 10:15 am GMT+7

Vietnam’s central bank sells $1.5 bln to stabilize currency: broker MBS

Vietnam’s central bank sells $1.5 bln to stabilize currency: broker MBS

The State Bank of Vietnam (SBV) intervened in the foreign exchange market by selling approximately $1.5 billion via 180-day cancelable forward contracts from August 25-26, in an effort to ease pressure on the Vietnamese dong, according to a recent report by MB Securities (MBS).

Banking - Mon, September 15, 2025 | 8:04 am GMT+7

Hanoi aims to break ground on $11.4 bln Red River Boulevard & Landscape project by Jan 2026

Hanoi aims to break ground on $11.4 bln Red River Boulevard & Landscape project by Jan 2026

A consortium of “tunnel king” Deo Ca Group and real estate developer Van Phu Invest has been assigned by the Hanoi People’s Committe to prepare an investment proposal for the VND300 trillion ($11.37 billion) Red River Boulevard & Landscape project.

Real Estate - Mon, September 15, 2025 | 7:55 am GMT+7