Vietnam real estate inventory on the rise

By Vu Pham, Huong Dung
Fri, March 10, 2023 | 7:00 am GMT+7

The real estate inventory in Vietnam is forecast to continue increasing in the coming time amid declining demand, according to property consultancy DKRA Vietnam.

DKRA cited a Ministry of Construction report as showing that in 2022, despite difficulties, the real estate market still recorded some recovery with 150,268 successful apartment or landed-house transactions and 63,405 apartments that will take shape in future offered for sale nationwide.

However, by the end of 2022, the total inventory value of some large real estate developers listed on the stock exchange increased rapidly, reaching nearly VND272,210 billion ($11.48 billion), up 26.4% year-on-year.

For example, Novaland Group’s inventory rose from VND86,870 billion ($3.66 billion) in 2020 to VND134,485 billion ($5.67 billion) by the end of last year. Its inventory mainly came from projects like Aqua City, NovaWorld Phan Thiet and NovaWorld Ho Tram as well as from new projects it acquired.

Vinhomes Ocean Park, a project developed by Vinhomes in Hanoi's Gia Lam district. Photo courtesy of the company.

Vinhomes Ocean Park, a project developed by Vinhomes in Hanoi's Gia Lam district. Photo courtesy of the company.

Vinhomes, a subsidiary of Vietnam’s largest private conglomerate Vingroup, recorded VND65,816 billion ($2.78 billion) of inventory in 2022, up 131% year-on-year.

Its inventory stemmed mainly from such projects as Vinhomes Grand Park, Vinhomes Smart City, Vinhomes Ocean Park, Vinhomes Ocean Park 2 - The Empire, and Vinhomes Ocean Park 3 - The Crown.

Meanwhile, Dat Xanh Group had an inventory value of VND14,238 billion ($600.7 million); Khang Dien VND12,440 billion ($524.8 million); Phat Dat VND12,131 billion ($511.76 million); and DIC Corp VND5,923 billion ($249.9 million).

According to DKRA Vietnam, the real estate inventory in Vietnam has continuously surged since 2019 when it reached VND223,474 billion ($9.43 billion), up 38% year-on-year.

In particular, inventories were mostly seen in the segments of mid- and high-end apartments, tourist apartments and resettlement houses built in locations far from the city centers, with poor technical and social infrastructure.

At the same time, credit tightening, increased inspection of projects/investors, tight licensing management, and high interest rates have put pressure on developers’ decisions to offer products for sale, it added.

Restructuring to survive

According to DKRA, since the middle of 2022, a series of challenges, from the tightened credit to the impact of the bond market and legal barriers, have made most real estate developers unable to implement their projects.

With continuously decreased liquidity, businesses have been forced to streamline their workforce and adjust strategies in order to avoid a crisis.

In the first two months of 2023, the number of real estate enterprises applying to suspend operations soared by more than 57% over the same period last year. Dissolved enterprises rose 20% year-on-year.

Many businesses have had no way other than reducing wages and laying off up to 50% of their employees to maintain operations. Some others have maintained working capacity at about 25-30% as compared to the same period last year.

“In order to survive in the current difficult context, businesses need to restructure their portfolios, gather resources as well as reposition market segments,” the consultancy recommended.

Under the freshly issued Decree 08 on private placements of corporate bonds, enterprises can negotiate with bondholders to pay principal and interest with assets other than cash. This is considered a premise to help create positive signals for the real estate market in the coming time.

The government decree, effective from March 5, 2023, allows extending the term of bonds by up to two years, while issuers cannot do so at all under the old Decree 65.

In case bondholders do not agree to such a change, issuers "must negotiate with the bondholders to ensure the latter's interests".

If negotiations do not reach expected results, issuers must fulfill their obligations to bondholders according to their previously announced bond issuance plan.

For bonds offered domestically, if issuers cannot fully and timely pay principal and interest in Vietnamese dong according to the previously announced plan, they can negotiate with bondholders to pay with other assets.

This has to ensure that the bondholders must approve and the issuers must disclose unusual information and be responsible for the legal status of the assets used for payment.

Comments (0)
  • Read More
Vietnam corporate earnings to be driven by credit expansion, trading activity, property recovery

Vietnam corporate earnings to be driven by credit expansion, trading activity, property recovery

With Q3 earnings season underway, results are expected to come in broadly in line with expectations. Financials should remain the largest contributors, benefiting from credit expansion and trading activity, while real estate continues to recover as project launches and sales rates improve, writes Tung Dang, associate director at Dragon Capital.

Economy - Tue, October 21, 2025 | 2:33 pm GMT+7

Inland port opens in southern Vietnam province Tay Ninh, set to become border logistics hub

Inland port opens in southern Vietnam province Tay Ninh, set to become border logistics hub

The 16.5-hectare Tan Cang-Moc Bai inland port in Tay Ninh province, southern Vietnam has been opened, offering logistics services and handling customs clearance for imports and exports.

Infrastructure - Tue, October 21, 2025 | 12:03 pm GMT+7

State-managed property trading centers will help curb speculation, price manipulation: expert

State-managed property trading centers will help curb speculation, price manipulation: expert

Establishment of state-managed real estate trading centers is expected to create a transparent transaction channel, helping control and limit speculation and price manipulation in the Vietnamese market.

Real Estate - Tue, October 21, 2025 | 8:37 am GMT+7

Vietnam's benchmark VN-Index records sharpest drop in 25-year history

Vietnam's benchmark VN-Index records sharpest drop in 25-year history

VN-Index, which represents the Ho Chi Minh Stock Exchange (HoSE), saw the sharpest decline in its 25-year history on Monday, down by 94.76 points, or 5.47%, to 1,636.43.

Finance - Mon, October 20, 2025 | 5:49 pm GMT+7

Construction contractor Coteccons sets record FY2026 targets, capital base hike via share issue

Construction contractor Coteccons sets record FY2026 targets, capital base hike via share issue

Coteccons Construction JSC (HoSE: CTD), one of Vietnam’s largest construction contractors, has set ambitious targets for its fiscal year 2026, driven by a record order backlog and its push into international markets.

Companies - Mon, October 20, 2025 | 4:50 pm GMT+7

Real estate, gold markets to be fully established by 2026: Prime Minister

Real estate, gold markets to be fully established by 2026: Prime Minister

Vietnam plans to complete comprehensive legal framework for its financial, real estate, and gold markets by 2026 as part of a broader effort to modernize market infrastructure and accelerate economic growth, said Prime Minister Pham Minh Chinh.

Finance - Mon, October 20, 2025 | 3:33 pm GMT+7

Vietnam breaks ground on nation’s most advanced domed stadium in Hung Yen province

Vietnam breaks ground on nation’s most advanced domed stadium in Hung Yen province

Vietnam’s Ministry of Public Security has broken ground on a 60,000-seat domed stadium in the northern province of Hung Yen, set to become the country’s most technologically advanced sports venue.

Society - Mon, October 20, 2025 | 2:48 pm GMT+7

Workforce and logistics - keys to sustainable e-commerce growth in Vietnam: experts

Workforce and logistics - keys to sustainable e-commerce growth in Vietnam: experts

Businesses and online shop owners in Vietnam should pay greater attention to human resources and logistics, considering these factors “keys” to competitive advantage in the increasingly volatile e-commerce market, according to experts.

Economy - Mon, October 20, 2025 | 10:54 am GMT+7

Construction stocks ignite Vietnam’s market rally by year-end

Construction stocks ignite Vietnam’s market rally by year-end

FDI inflows into Vietnam are hitting record highs, while faster public investment disbursement and stable construction material costs are fueling a late-year surge in construction stocks, analysts said.

Finance - Mon, October 20, 2025 | 10:44 am GMT+7

Vietnam's central bank struggles to rein in cross-ownership

Vietnam's central bank struggles to rein in cross-ownership

Cross-ownership and bank manipulation in Vietnam have eased, yet control remains elusive as shareholders and related parties conceal ownership through nominees, the State Bank of Vietnam (SBV) said in a report to the country’s legislature.

Banking - Mon, October 20, 2025 | 8:34 am GMT+7

Viettel Post-invested $27 mln logistics center project breaks ground in central Vietnam

Viettel Post-invested $27 mln logistics center project breaks ground in central Vietnam

Viettel Post, a subsidiary of military-run Viettel Group, has broken ground on an over VND722 billion ($27.41 million) logistics center project in Danang city, which is expected to enhance the logistics capacity of Vietnam's central and Central Highlands regions.

Industries - Sun, October 19, 2025 | 7:35 pm GMT+7

Vietnam's stock market regulator introduces green bond disclosure handbook

Vietnam's stock market regulator introduces green bond disclosure handbook

By enhancing transparency and standardizing disclosures, the Green Bond Disclosure Handbook that the State Securities Commission of Vietnam (SSC) introduced will build investor trust, reduce greenwashing risks, and support the growth of a credible and resilient green finance market in Vietnam.

Finance - Sun, October 19, 2025 | 2:11 pm GMT+7

Central Vietnam province Lam Dong seeks investment for 72 projects

Central Vietnam province Lam Dong seeks investment for 72 projects

The Lam Dong province People's Committee has called for investment in 72 projects across various sectors which are set for implementation in 2025 and the 2026-2030 period.

Industries - Sun, October 19, 2025 | 1:31 pm GMT+7

Vietnam's leading conglomerate Vingroup ventures into senior living market

Vietnam's leading conglomerate Vingroup ventures into senior living market

Vingroup JSC (HoSE: VIC) has unveiled Vin New Horizon, a network of premium retirement and wellness communities built to international standards, marking the Vietnamese conglomerate’s strategic entry into the senior living market.

Industries - Sun, October 19, 2025 | 12:28 pm GMT+7

Vietnam’s agri major HAGL makes surprise return to property, saying land plot forgotten for 15 years

Vietnam’s agri major HAGL makes surprise return to property, saying land plot forgotten for 15 years

Vietnam’s agri major Hoang Anh Gia Lai JSC's (HAGL) return to real estate is an accident, after discovering a plot of land the company had “forgotten for 15 years” during its boom years, said chairman Doan Nguyen Duc.

Companies - Sun, October 19, 2025 | 10:02 am GMT+7

REE to set up 2 subsidiaries for wind projects in southern Vietnam

REE to set up 2 subsidiaries for wind projects in southern Vietnam

Ho Chi Minh City-based utility firm Refrigeration Electrical Engineering Corporation (HoSE: REE) has decided to establish two wholly-owned subsidiaries to develop two wind power projects in Vinh Long province, expanding its renewable energy portfolio in southern Vietnam.

Energy - Sun, October 19, 2025 | 8:00 am GMT+7