Doan Chi Thanh, business director of Khoi Thanh Construction and Building Business Company, said the real estate market liquidity would improve if the rates decrease to 9-10%, but not if they remain at 13-14% or fall only to 12-13%, when people would opt to hold on to cash and bank deposits.

Office and apartment buildings line Hanoi Highway along Ho Chi Minh City’s first metro route.

The CEO of a property developer in Ho Chi Minh City said if the rates are cut to around 9.5%, legal and administrative issues faced by property developers are resolved and the economy improves, the market would recover.

The current rates of around 13.5% are high and are preventing money from flowing to the market, the CEO said.

The central bank recently reduced the deposit interest rate cap for terms of less than six months, and over 20 banks cut their deposit rates, bringing the peak rate down to 8.5%.

Compared to two weeks ago rates are down by an average of half a percentage point for terms of less than six months, and by 0.2-0.3 percentage points for longer terms.

Meanwhile, the real estate market has remained illiquid, with sales of apartments and townhouses declining by 80-90% year-on-year so far this year.

Many people, despite needing to buy houses to live in, are not investing and staying out of market.

Pham Anh Khoi of the Vietnam Association of Realtors said a large amount of deposits mature in the third quarter, and if interest rates decrease to 6-7%, some of the money would enter the property market.

Needless to say, if confidence in the market remains low, people would continue to deposit money in banks despite low interest rates, he added.

Vietnam shows significant improvement in business environment: EIU

Vietnam jumped 12 places in the Economist Intelligence Unit (EIU)’s latest business environment rankings which measure the attractiveness of doing business in 82 countries with 91 crucial indicators.

FDI business: Industrial production locomotive

(BGO) – Bac Giang province now has 8 industrial parks (IP) which have attracted 453 projects, including 350 foreign direct investment (FDI) projects with total registered capital of over 8.2 billion USD. Amid many difficulties, the FDI enterprises in the IP maintain stable production and business activities, ensure good policies and rights for labours. 

Efforts to improve investment and business environment

The Provincial Competitiveness Index (PCI) 2022 is the recognition of the business community on the innovation and creativity efforts of local authorities over the past year. While Bac Giang, a province in the northern midland region, made great progress, ranking second, Hanoi and Ho Chi Minh City downgraded compared to the results in 2021. This reflects fierce competition in development, forcing localities to thoroughly grasp their strengths and weaknesses to make changes to avoid lagging.

Over 21,270 farmer households in Bac Giang city recognized as good production and business

(BGO) – More than 21,270 out of 23,447 registered turns of farmers in Bac  Giang city (Bac Giang province) have been qualified as good production and business households at all levels since 2018.

Bac Giang urged to remove difficulties in business, production and public investment

(BGO) – The Government working delegation led by Member of the Central Party Committee, Minister of Industry and Trade Nguyen Hong Dien on May 11 paid a visit to Bac Giang province about the business, production, public investment, infrastructure construction, export and import. 

Source: VnExpress