Outstanding loans to the real estate sector had reached over VND986 trillion ($41.1 billion) as of August 31, according to the latest figures from the State Bank of Vietnam (SBV).

Loans for projects building urban areas and housing developments are estimated at over VND266.2 trillion ($11.09 billion).

Those for projects building offices stood at over VND40.6 trillion ($1.69 billion) and for projects constructing industrial, processing, and exporting zones more than VND56.5 trillion ($2.35 billion).

The SBV has taken many measures to tackle difficulties and enhance the economy’s capacity to absorb capital, such as managing monetary policy and banking operations under policies and directions from the National Assembly and the government.

It has cut key interest rates four times since the beginning of the year, by 0.5-2 per cent per annum, in the context of global interest rate continuing to rise. As a result, common interest rates have remained stable and deposit and lending interest rates have been on a downwards trend. The average deposit rate at commercial banks is down 2 per cent per annum compared to the end of 2022.

Early in the year the SBV set a target of annual credit growth of 14-15 per cent; higher than the figure in previous years, with the aim of supplying more credit to meet the economy’s demand.

The central bank has also adopted solutions to remove obstacles facing the real estate market so it may develop in a safe, healthy, and sustainable manner in line with government directions.