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Summary

22 BANKING - FINANCE 30 INVESTMENT - INFRASTRUCTURE
BAD Removing obstacles to

DEBT develop industrial parks

RATIO LIKELY TO

HEAD UPWARDS

A ccording to the Ministry of Planning and Investment,
as of the end of 2023, Vietnam had 414 industrial
A policy of extending or postponing debt and maintaining were attracting investment. Total disbursed capital for
parks, of which 293 had been put into operation and
the same debt groups for customers has been applied by
the State Bank of Vietnam (SBV) since March 2020 and projects in industrial parks and economic zones stood at
has been extended to the present. Regulations were issued $212 billion as of the end of 2022. However, attracting
mainly towards providing banks with a mechanism to delay investment to develop industrial parks and economic zones
recognition and provisioning and to create the conditions to has exhibited limitations that need to be overcome, such as
extend timelines for real estate investors to resolve their legal issues and financial policy. The total investment needed
approaching debt obligations. The sudden acceleration of credit to develop infrastructure and fill industrial parks is
in the closing month of 2023 may have caused bank bad debt estimated at $670-720 billion by 2030. Without basic policies
ratios to hit a lower level in the fourth quarter. However, this to open up capital flows, create favorable conditions for
ratio is likely to increase again in the first half of 2024, as credit investors to access production factors, and innovate
growth slows and macro-economic factors show no clear signs investment promotion activities, it will be difficult to
of improvement. mobilize sufficient capital.

34 PROPERTY 48 TRADE - MARKET

Real estate market and legal

gaps need to be addressed Preparing Vietnamese businesses
to ‘shake hands’ with the EU

B oosting links and cooperation between Vietnamese
and EU businesses will play an important role in
the implementation of the EU-Vietnam Free Trade
Agreement (EUVFTA). Taking advantage of European
raw materials and technology to produce better quality
goods and more deeply participate in global supply chains
I n an overall assessment of market developments in 2023, is among the major expectations for Vietnamese
businesses when the EUVFTA enters into a new
many real estate management and research units believe
that although many positive changes have been seen, real implementation phase. In particular, the State must
estate supply and transaction volumes remain limited compared complete the legal system to suit investors from the EU.
to 2022. Real estate businesses continue to face lingering A willingness to cooperate is also required, to improve the
difficulties. The Ministry of Construction has proposed a series investment environment, human resources quality, digital
of specific solutions to promote the healthy and sustainable transformation, and innovation, in order to welcome
development of the real estate market, with special emphasis on projects with high technology, source technology, and
institutional improvements and addressing legal gaps. advanced technology from developed countries.

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