Bui Quang Anh Vu, CEO of Phat Dat Real Estate Development Corporation, told VIR that his company faced many challenges related to capital and liquidity last year. However, thanks to the government's timely solutions and the trust of investors, Phat Dat successfully mobilised capital by issuing private shares to professional securities investors, raising more than $28 million.

Bui Quang Anh Vu, CEO of Phat Dat Real Estate Development Corporation

By the end of 2023, Phat Dat had paid its corporate bond debt of $104 million ahead of schedule, bringing its bond loan balance to zero.

"Our real estate projects have all completed the legal requirements to qualify for bank loans," Vu confirmed.

In the fourth quarter of last year, Military Commercial Bank (MB) provided comprehensive financial solutions of more than $250 million to investors in the company's project in Binh Duong province. In February, MB continued to provide a loan package of $62.5 million for the project.

However, Vu proposed some more recommendations, "We need more preferential credit packages, shortened approval times, loosened conditions for credit institutions to disburse funds, and reduced lending interest rates along with increasing access to credit capital."

"The government should provide more policies to simplify legal procedures for the real estate market so that projects are eligible to be traded on the market. It should also actively direct and establish an inter-ministerial working group to support localities and businesses to promptly resolve difficulties," he added.

Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association (HoREA), believes that credit growth in 2024 will reach its target of 15 per cent. "We applaud the State Bank of Vietnam (SBV) for assigning credit growth targets to all commercial banks from the beginning of the year, which has never happened before" said Chau.

The SBV leaders also confirmed the extension of Circular No.02/2023/TT-NHNN on the rescheduling of debt payment and the maintenance of debt groups by credit institutions and foreign banks to support customers in difficulties as well as retain low-interest rates for a cheap capital supply.

Regarding real estate credit, growth in the first two months of 2024 has been just 0.23 per cent. Chau hopes that credit growth will improve, as the real estate sector has a lot of influence on the performance of the entire economy.

Legal issues are currently the greatest obstacle in the real estate sector, with 70 per cent of all difficulties faced related to legal concerns. The HoREA recommended competent state agencies to solve these problems so real estate projects can qualify for credit access.

"This is a non-credit effective solution to promote credit growth. Without adequate legal regulations, credit institutions have no framework to lend," Chau said.

Chau requested that authorities complete guiding documents for the laws on land, housing, and real estate soon; as well as suggesting businesses accelerate restructuring processes.