Vietnam’s real estate market is experiencing a logjam in liquidity. Analysts have said that as credit and corporate bonds are shrinking, real estate prices may fall by up to 30 per cent. However, the Chairman of the Vietnam Association of Realtors (VARS) remains optimistic that the real estate market still holds substantial potential for development and can grow at an average annual rate of 15 per cent.

At the “Opening micro-credit for small and medium-sized enterprises and cooperatives to serve the production, processing and consumption of agricultural products” forum held on July 28 by the Agricultural Product Connection Management Team 970 at the Ministry of Agriculture and Rural Development, participants said capital was a concern for cooperatives but they have difficulties accessing loans.

Credit institutions are expected to “slightly loosen” overall credit standards this year and focus on priority sectors and industries such as wholesale, retail, import and export, construction, and consumer lending, while tightening them on “high-risk” sectors such as securities and real estate.