Real estate capital faces risks from credit to bonds
- 8
- Business
- 16:11 30/10/2024
DNHN - Amid global economic turbulence, the real estate market faces significant risks from bank credit and corporate bonds.
According to data from the State Bank of Vietnam, total real estate credit debt increased through the end of September 2023 but remains below expectations due to tightened bank lending. Despite high market demand, many banks are cautious about funding real estate projects, partly out of concerns over developers' repayment capabilities, especially after several prominent real estate firms struggled to complete projects.
In addition, corporate bonds have become a common capital-raising channel for real estate companies. However, the bond market shows concerning signs. Many companies have issued high-interest bonds to attract investors, but transparency around fund usage and repayment ability remains lacking. These risks have led potential investors to exercise greater caution before investing in real estate bonds.

The tightening of bank credit may lead to project delays in real estate. When bank funds dry up, developers must look for alternative capital from the bond market or investment funds, which are not always readily available or easy to access.
Liquidity risk has become severe as many real estate companies struggle to meet interest payments. This could lead to defaults, causing significant losses for banks. Forecasts indicate that if conditions do not improve, further defaults may occur soon, impacting not only the real estate sector but also other parts of the economy.
The corporate bond market has seen strong growth in recent years but is fraught with risks. Some real estate companies have issued bonds at attractive interest rates, yet lack transparency in fund utilization. This creates concerns over future repayment capabilities, especially when many investors lack a clear view of the companies' financial health.
Moreover, companies often issue long-term bonds while real estate projects typically have extended payback periods, creating a mismatch between raised funds and profit-generating capacity. Without effective capital strategies, default risks will rise, affecting investor sentiment and the broader market.
To mitigate risks in the real estate market, stakeholders need to implement essential measures. First, closer coordination between government regulators and banks in credit control and bond issuance is essential. Banks must thoroughly assess developers' financial health before lending.
Second, greater transparency in corporate bond issuance is crucial. Companies must disclose comprehensive financial and project details to build investor confidence. Furthermore, establishing stricter standards and regulations around bond issuance will help mitigate risks for investors.
Third, real estate companies should revisit their business strategies. Focusing on viable projects and ensuring profitability will improve their financial situation and foster long-term sustainability.
Real estate capital currently faces multiple challenges from both bank credit and corporate bonds. Amid economic uncertainty, these risks affect not only businesses but also the entire economy. Minimizing these risks requires close coordination among regulatory agencies, banks, and businesses.
To ensure sustainable development of the real estate market, developers must prioritize transparency, repayment ability, and effective capital strategies. Meanwhile, investors should exercise caution in deploying funds in this volatile market to safeguard their assets. Only with consensus and effort from all stakeholders can Vietnam’s real estate market overcome present challenges and move toward a stable, prosperous future.
Nghe Nhan
Related news
#real estate enterprises

Real estate businesses and macroeconomic challenges
The year 2024 marks a challenging period for real estate businesses, not only in Vietnam but also worldwide.

More than 1,000 new real estate businesses established in Ho Chi Minh City, transactions grow
In the first nine months of 2024, Ho Chi Minh City's real estate market witnessed the establishment of over 1,000 new businesses and recorded 1,600 property transactions, signaling a positive recovery trend.

What should real estate businesses do during a recession cycle?
When the real estate sector enters a recession cycle, businesses in the industry face significant challenges.

Dr. Tran Xuan Luong: Real estate businesses lacking resources will be eliminated from the game
Dr. Tran Xuan Luong believes that real estate businesses that lack resources and strategy will certainly struggle to survive in the current competitive environment.

Financial revenue - a bright spot for real estate enterprises
Financial revenue in the second quarter of 2024 has been an important bright spot, helping many real estate businesses maintain positive profits despite challenges from their core business activities, contributing to their financial stability.

Resort real estate: The path out of the "dark zone"
Resort real estate can overcome the "dark zone" by enhancing customer experience, maintaining and upgrading infrastructure, developing diverse amenities, and implementing effective marketing strategies.
Đọc thêm Business
US tariffs on Brazil propel Vietnam’s pangasius into global spotlight
Vietnam’s pangasius industry eyes $2 billion worth of exports in 2025 amid shifting US trade policy and a global supply realignment.
CICON expands strategic alliances: A new step forward in Vietnam–Korea business connectivity
On the afternoon of September 26, 2025, a strategic cooperation signing ceremony took place between CICON (Korea) and its key Vietnamese partners, including the Ho Chi Minh City Association of Small and Medium Enterprises (HUBA), Doanh nghiệp & Hội n
What must Vietnamese enterprises do to maintain their position in the global supply chain?
Mr. Lu Wei Chieh, General Manager of Cathay United Bank – Ho Chi Minh City Branch, shared with Business & Integration Magazine key strategies that can help Vietnamese enterprises not only stand firm but also go further amid shifting global dynamics.
Vietnam hits highest FDI inflow since 2009, fuels industrial real estate boom
This robust inflow is not only transforming the country’s industrial landscape but also signaling Vietnam’s rising role in the global supply chain amid shifting geopolitical dynamics.
Foreign investors expected to open 150,000 new securities accounts in the next 5 years
The Ministry of Finance has set an ambitious target to increase the number of securities trading accounts held by foreign investors in Vietnam to 200,000 by 2030—four times higher than the current figure.
Vietnam launches “Private Economy Panorama Model” to foster public-private national development
Billionaire Nguyen Thi Phuong Thao emphasizes that entrepreneurs’ responsibilities extend beyond profits to creating social value.
Deputy Prime Minister Lê Thành Long meets with Osaka Governor Yoshimura Hirofumi to promote Vietnam–Japan cooperation.
As part of his working visit to Japan and participation in the Vietnam National Day at EXPO 2025 Osaka, on September 8, Deputy Prime Minister Lê Thành Long held talks with Osaka Governor Yoshimura Hirofumi.
Larry Ellison’s lesson: Enduring success starts with fixing the market’s pain points
As of today, Larry Ellison has risen to become the world’s second-richest billionaire with a fortune of nearly $260 billion, surpassing familiar names such as Jeff Bezos and Warren Buffett.
The master sales secrets of luxury king Bernard Arnault that make the world spend
Billionaire Bernard Arnault, Chairman of LVMH (Moët Hennessy Louis Vuitton), controls more than 70 of the world’s most prestigious luxury brands, from Louis Vuitton and Dior to Moët & Chandon and Bulgari.
White House: When politics and technology join forces to rewrite the global AI order
The White House became the epicenter of global attention as U.S. President Donald Trump and First Lady Melania Trump hosted a high-profile state dinner, bringing together more than 20 of the most powerful leaders in technology and American business.