• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

Short and Funny Sayings for a Happy Summer with Friends

May 9, 2025

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Friday, May 9
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Security video shows brazen sexual assault of California woman by homeless man

    October 24, 2023

    Woman makes disturbing discovery after her boyfriend chases away home intruder who stabbed him

    October 24, 2023

    Poll finds Americans overwhelmingly support Israel’s war on Hamas, but younger Americans defend Hamas

    October 24, 2023

    Off-duty pilot charged with 83 counts of attempted murder after allegedly trying to shut off engines midflight on Alaska Airlines

    October 23, 2023

    Leaked audio of Shelia Jackson Lee abusively cursing staffer

    October 22, 2023
  • Health

    Disparities In Cataract Care Are A Sorry Sight

    October 16, 2023

    Vaccine Stocks—Including Pfizer, Moderna, BioNTech And Novavax—Slide Amid Plummeting Demand

    October 16, 2023

    Long-term steroid use should be a last resort

    October 16, 2023

    Rite Aid Files For Bankruptcy With More ‘Underperforming Stores’ To Close

    October 16, 2023

    Who’s Still Dying From Complications Related To Covid-19?

    October 16, 2023
  • World

    New York Democrat Dan Goldman Accuses ‘Conservatives in the South’ of Holding Rallies with ‘Swastikas’

    October 13, 2023

    IDF Ret. Major General Describes Rushing to Save Son, Granddaughter During Hamas Invasion

    October 13, 2023

    Black Lives Matter Group Deletes Tweet Showing Support for Hamas 

    October 13, 2023

    AOC Denounces NYC Rally Cheering Hamas Terrorism: ‘Unacceptable’

    October 13, 2023

    L.A. Prosecutors Call Out Soros-Backed Gascón for Silence on Israel

    October 13, 2023
  • Business

    Trump Announces First Post-Tariff Trade Deal

    May 8, 2025

    Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

    May 7, 2025

    Tyson Foods Announces It Will Bend The Knee To Trump Admin’s New Rules

    May 7, 2025

    Federal Reserve Holds Interest Rates Steady Despite Pressure From Trump

    May 7, 2025

    ‘Wait Them Out’: John Kennedy Tells Larry Kudlow One Lie He Suspects China’s Telling US

    May 7, 2025
  • Finance

    Ending China’s De Minimis Exception Brings 3 Benefits for Americans

    April 17, 2025

    The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

    April 17, 2025

    Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

    April 17, 2025

    How China’s Companies Are Responding to the US Trade War

    April 16, 2025

    The US Flip-flop Over H20 Chip Restrictions 

    April 16, 2025
  • Tech

    Cruz Confronts Zuckerberg on Pointless Warning for Child Porn Searches

    February 2, 2024

    FTX Abandons Plans to Relaunch Crypto Exchange, Commits to Full Repayment of Customers and Creditors

    February 2, 2024

    Elon Musk Proposes Tesla Reincorporates in Texas After Delaware Judge Voids Pay Package

    February 2, 2024

    Tesla’s Elon Musk Tops Disney’s Bob Iger as Most Overrated Chief Executive

    February 2, 2024

    Mark Zuckerberg’s Wealth Grew $84 Billion in 2023 as Pedophiles Target Children on Facebook, Instagram

    February 2, 2024
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Business»Vietnam’s real estate woes: how much worse can they get?
Business

Vietnam’s real estate woes: how much worse can they get?

October 26, 2023No Comments4 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email

HANOI, Oct 26 (Reuters) – A rough year for Vietnam’s real estate sector has seen developers miss interest payments on debt, amid a credit crunch spurred by ill-timed government measures, although spillover risk has been limited.

The sector was the worst performer last month on the falling Ho Chi Minh City stock exchange (.VNI), with a drop of nearly 16% on the month, says key Vietnam investor Dragon Capital.

That capped two years of turmoil in developers’ shares that spread last year to corporate bonds, hitting project development and leaving ghost blocks of high-end property.

WHICH DEVELOPERS ARE IN TROUBLE?

No Va Land (NVL.HM) is the largest listed developer to face problems, with its shares down more than 80% in a year, after missing interest payment deadlines on domestic and foreign bonds that triggered a standoff with some international creditors.

Shares of the largest listed developer, Vinhomes (VHM.HM), part of the country’s biggest conglomerate, Vingroup (VIC.HM), have fallen 13% this year.

Other non-listed companies who defaulted recently include Hung Thinh Corp, a major developer in southern Vietnam, and Van Thinh Phat, whose chairwoman was arrested in a graft crackdown last year, according to VISRating, which is partly owned by Moody’s.

Buildings stand empty with interiors unfinished in developer Sun Group’s “Mediterranean town” on the southern island of Phu Quoc, while the skeletons of incomplete high-rises flank shiny towers in Hanoi built by another developer, Sunshine.

And the pressure is mounting, with real-estate bonds of about $6 billion set to mature each this year and the next, nearly three times more than in 2022.

See also  Thailand expects Tesla, Google, Microsoft to invest $5 billion, prime minister says

HOW LIKELY ARE SPILLOVER RISKS?

In September, the Asian Development Bank warned of potential spillover into banking from irregularities in corporate bonds and real estate markets, although troubled bonds made up just a small portion of total bank credit.

Jean Xavier of S&P Global said there was “no risk of massive contagion”, but warned about a slowdown in key consumer sectors and the negative impact on areas closely linked to real estate, such as construction and building products.

WHICH BANKS ARE MOST EXPOSED?

The banking system’s exposure to the property sector amounts to about 25% of total loans, says S&P Global, mostly through mortgages, which are not viewed as risky, however, thanks to robust employment.

Corporate bond holdings are about 3% of banks’ total loans, said S&P Global, which estimated between a third and a half were related to property.

The banks most exposed to the sector are Southeast Asia Bank (SSB.HM), Maritime Bank (MSB.HM), Asia Commercial Bank (ACB.HM), Vietnam Prosperity Bank (VP Bank) (VPB.HM) and Sacombank (STB.HM), 2022 data cited by VISRating shows.

Of these, only VP Bank ranks among the biggest lenders.

HOW DID THE TURMOIL START?

Analysts blame the worst troubles on a long-running graft campaign that authorities stepped up at the end of last year.

They see the Oct. 2022 arrest over financial fraud of Truong My Lan, chairwoman of Van Thinh Phat Holdings Group, as a turning-point after which confidence dropped.

The arrest followed tougher rules on transparency and private placement of corporate bonds adopted that September, and coinciding with an economic slowdown, so that authorities were forced to suspend them a few months later, as the market froze.

See also  China’s Economic Woes Deepen With Housing Market Slump

Bond issuance drew to a halt and bank loans fell, spurring the government to repeatedly urge lenders to boost credit.

IS VIETNAM A NEW CHINA?

While ill-timed government measures, companies’ high debt and oversupply are responsible for the sectors’ woes in both countries, conditions are different in Vietnam.

Its long-term prospects are more positive, said S&P’s Xavier Jean, as a younger population and an expanding middle-class are set to keep demand for property high.

Vietnam has a less acute situation of oversupply and speculation than China, he added, while real estate’s contribution to its economy is also smaller.

($1=24,606 dong)

Reporting by Francesco Guarascio @fraguarascio and Phuong Nguyen; Editing by Anne Marie Roantree and Clarence Fernandez

: .

Acquire Licensing Rights, opens new tab
estate Real Vietnams Woes worse
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

May 7, 2025

Tyson Foods Announces It Will Bend The Knee To Trump Admin’s New Rules

May 7, 2025

Federal Reserve Holds Interest Rates Steady Despite Pressure From Trump

May 7, 2025
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Saints’ Alvin Kamara Indicted in Las Vegas Battery Case

February 28, 2023

5 Tips For Using CBD Oil

April 19, 2023

Pamela Anderson defends #MeToo comments about Harvey Weinstein

February 15, 2023

Dollar rebounds, Fed officials take center stage

November 6, 2023
Don't Miss

Short and Funny Sayings for a Happy Summer with Friends

Lifestyle May 9, 2025

I love the beach. Just looking at the calming sea to relax. Having fun in…

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,110)
  • Entertainment (4,220)
  • Finance (3,202)
  • Health (1,938)
  • Lifestyle (1,627)
  • Politics (3,084)
  • Sports (4,036)
  • Tech (2,006)
  • Uncategorized (4)
  • World (3,944)
Our Picks

Legendary Red Sox Knuckleballer Tim Wakefield Dies at 57

October 2, 2023

Russia Bombs New York! (…a Village in Ukraine)

July 31, 2023

Hollywood Writers to Picket Warner Bros. Discovery CEO David Zaslav’s Boston U Commencement Speech

May 15, 2023
Popular Posts

Short and Funny Sayings for a Happy Summer with Friends

May 9, 2025

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025
© 2025 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.