Vietnam hastens measures to shore up property market, fuelling hopes of a faster rebound

[HO CHI MINH CITY] Vietnam’s property market remains in a slump, with developers still reeling from a liquidity crunch, soaring interest rates, tighter rules on private placement bonds, and a crackdown that has led to the arrest of several high-profile business executives.

The government has recently stepped in with a slew of measures to boost market sentiment, such as loosening corporate bond regulations and rolling out a massive 120 trillion dong (S$6.82 billion) low-interest credit package for social housing projects.

In March, the government issued a resolution ordering ministries to ease a credit crunch and legal entanglements for property developers. The State Bank of Vietnam was asked to consider directing lenders to delay loan repayments or restructure bad debts, as well as create favourable conditions for investors and home buyers to access new loans.