return icon Vietnamnet.vn

HCMC property developers ask for loosening of corporate bond policies

The HCM City Real Estate Association (HoREA) has asked for corporate bond regulations to be loosened to help businesses get through the COVID-19 pandemic, local media have reported.

 

 

Phu My Hung Urban Area in HCM City. The real estate market in HCM City froze in the first quarter as demand and purchasing power tumbled due to COVID-19. 

 

 

According to HoREA chairman Le Hoang Chau, bonds had become a key tool for real estate firms to raise funds for projects. The association suggested that real estate firms be permitted to continue raising funds from bond issuances as they faced difficulties from the outbreak.

From January to March, about 53,000 units went on sale but only 14 per cent were sold – the lowest rate in four years. Eight hundred real estate trading houses, or 80 per cent of the total, were closed during the period.

In total, 94 per cent of real estate firms closed, while new businesses declined by 12 per cent on-year.

The real estate market had frozen in the first quarter, Chau said. Trading volume fell 70 per cent on-year and total revenue slumped 80 per cent on-year, leading to a shortage of cash and liquidity.

Policies should be amended to assist the development of the corporate bond market, while promoting transparency and protecting the rights and benefits of investors and companies.

It is not the first time real estate firms have asked for the loosening of corporate bond regulations.

Local property developers are facing uncertainties as the Government and the State Bank of Vietnam (SBV) are trying to raise the standards for real estate bond issuance.

From 2019, banks were asked to cut the ratio of short-term loans used for mid-term and long-term lending to a maximum of 30 per cent from 40-45 per cent to strengthen the banking sector and lower financial risks.

The central bank on November 15, 2019 issued a circular to restrict local banks from making loans for customers to trade in corporate bonds.

Under the circular, a bank must record a less-than-3 per cent bad debt rate if it wanted to fund corporate bond buying. Customers cannot take out loans to trade corporate bonds if they used the bonds themselves as collateral, and total corporate bond-lending must only account for a maximum of 5 per cent of the bank’s charter capital.

Real estate firms in 2019 raised a total of VND106.5 trillion (US$4.56 billion) from bond issuances. The figure was equal to 38 per cent of the economy’s total. Eighty-four per cent of the firms had the value of bond issuances triple their equity total, and average bond interest rate was 10.3 per cent per annum.

In the first three months of 2020, total corporate bonds raised in Viet Nam were worth VND37.3 trillion, with real estate firms accounting for 55 per cent of the total and interest rates averaging 10.3 per cent per annum. — VNS

Real estate to remain good investment after Covid-19 ends

Real estate to remain good investment after Covid-19 ends

Economists believe that real estate will remain a safe shelter for investors, and will still bring attractive profits in the post-Covid-19 period.

Changes required for central real estate

Changes required for central real estate

Despite going through a quiet period due to the effects of the coronavirus outbreak, investors and real estate businesses in Danang and the central region are striving to remove difficulties to maintain stable operations and adapt to a new direction.

MORE NEWS

Ngoc Linh ginseng helps Central Highlands locals out of poverty

Growers in the Central Highlands provinces dreamed of escaping poverty when they planted Ngoc Linh ginseng which has made an economic contribution to improving local farmers’ living conditions.

Soc Trang’s Khmer pagoda features giant Buddha statue

With the long-standing bonds of the Kinh, Khmer, and Hoa ethnic groups, Soc Trang boasts a special cultural identity that makes it an outstanding spiritual destination for tourists and Buddhist followers from far and wide.

Smart-homes getting cheaper in Vietnam

In Vietnam, a smart-home installation package costs VND14-25 million.

Vietnamese nationals account largest proportion of Japan’s foreign worker population

Vietnamese nationals account for 25.4% of the total 1.82 million foreign workers who were working in Japan as of the end of October last year, according to the Japanese Ministry of Health, Labour and Welfare (MHLW).

Mekong Delta develops more OCOP products

The Cuu Long (Mekong) Delta’s 12 provinces and the city of Can Tho are developing more products under the country’s “One Commune-One Product” programme.

Major Vietnamese paintings worth millions of dollars at global auctions

2022 represented a successful year for the Vietnamese painting market as three more pieces were auctioned at more than US$1 million each, bringing the total number of valuable paintings to 19. Let’s take a closer look at some of them.

Vietnamese American singer brings Tet Holiday joy to disadvantaged children

In hope to bring the children who lost their parents because of Covid-19 a warm spring holiday, Vietnamese American singer Ha Phuong spent a day to enjoy Tet with them.

How will the economy fare in 2023?

Vietnam’s economy had a prosperous year in 2022 with GDP growth rate of 8.02 percent, a one-decade high.

Female Vietnamese badminton star Thuy Linh placed 50th in world rankings

Vietnamese badminton star Nguyen Thuy Linh has risen to 50th position in the world’s latest singles women rankings, according to the Badminton World Federation (BWF).

Phin Ho ‘shan tuyet’ tea –specialty of Ha Giang

Apart from stilt houses and seemingly endless terraced paddy fields, “shan tuyet” tea, a famous specialty of Phin Ho village, is one of the special things visitors cannot forget once setting foot in Tay Con Linh Mountain in Ha Giang.

Discovering art of making vegetarian dishes in Tay Ninh

Religions and beliefs have made considerable contributions to the culinary culture of Tay Ninh.

Hoi An, HCM City among world's top 25 trending destinations in 2023: TripAdvisor

Germany’s famous travel site reisereporter.de has run an article highlighting the world’s top 25 trending destinations for 2023, including Vietnam’s Hoi An ancient city and Ho Chi Minh City, recently voted by readers of TripAdvisor.

Make-in-Vietnam sleeping machine developed by professor

FRENZ Brainband helps users have faster, tighter and deeper sleep. It can also be used for relaxing and enhancing concentration when working.

Paris Agreement: Lessons on independence, self-reliance, int’l solidarity

The signing of the Paris Agreement on ending the war and restoring peace in Vietnam on January 27, 1973, was a resounding victory of Vietnam’s revolutionary diplomacy in the Ho Chi Minh era.

PM: Lunar New Year comes with new energy

Prime Minister Pham Minh Chinh chaired a meeting of permanent Cabinet members in Hanoi on January 27, speaking of new energy of the nation following Tet (Lunar New Year), the biggest festival in Vietnam.
back_to_top