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|Experts advise firms to raise funds from the stock market and foreign investment since banks are tightening credit to them.-VNA/VNS Photo by Danh Lam|
Economist Bui Quang Tin said there were 60 listed property firms, including giants like Vincom, Van Phu Investment VPI, Everland EVG, and Sai Gon Co.op.
The stock market would be a good source for developers since they usually need long-term funds and large amounts and banks were squeezing credit the sector, he said.
The State Bank of Viet Nam (SBV) has reduced banks’ use of short-term funds for medium- and long-term loans from the current 45 per cent to 40 per cent from January 1 next year, he said.
“Many property firms have achieved good results this year. Their upbeat business performance has helped drive property stocks up.”
Besides, FDI would also be another source of funding for the property market with Viet Nam currently being a magnet for foreign investment, he said.
FDI in the property market has been on the rise for the last three years. In the first six months of this year it surpassed US$5.5 billion, accounted for 25 per cent of total foreign investment and was the second largest beneficiary after manufacturing, he said.
Su Ngoc Khuong, investment director at Savills Viet Nam, said capital was not that big a problem for property developers who can raise it from other sources even if banks refuse them since they have had experience dealing with credit problems in 2008-09.
“The story of property firms now and in the next two to three years is about land. Without clean lands, they will have no place to build new projects or offer new products to the market.”
Without lands, they would not have the chance to tie up with foreign firms either, he added.