#3 Highlights from the "Vietnam Credit Spotlight 2025" Conference - Is Recovery Within Reach For Residential Properties?

Following in-depth discussions on the outlook of Vietnam’s banking sector, senior analysts at the “Vietnam Credit Spotlight 2025” conference assessed that the Real Estate market is gradually stabilizing and preparing to enter a new growth cycle.

Following in-depth discussions on the outlook of Vietnam’s banking sector, senior analysts at the “Vietnam Credit Spotlight 2025” conference assessed that the Real Estate market is gradually stabilizing and preparing to enter a new growth cycle. 

Signs of Stabilization and a Path to Recovery 

From the second half of 2024, the real estate market has shown positive signals, driven by regulatory reforms and concerted efforts by policymakers to address structural inefficiencies. 

"The amendments to the three key laws - the Land Law, Real Estate Business Law, and Housing Law - will resolve the long-standing conflicts and overlaps in legal regulations. At the same time, they will mitigate risks where the same legal situation might be interpreted differently across localities," said Mr. Lucas Loh, CEO of Nam Long Group. 

Mr. Nguyen Nhat Hoang, Senior Analyst and Senior Manager Corporate Sector Ratings at FiinRating, echoed this view, stating: “The worst of the downturn is behind us. The State Bank of Vietnam has set a 16% credit growth target for 2025, signaling continued liquidity support for the economy, including real estate. However, not all developers will benefit equally from this recovery." 

Delving deeper into real estate financing, Mr. Nguyen Nhat Hoang noted that recent turbulence in the bond and real estate markets has significantly impacted investor sentiment. "Increased caution has restrained credit flow into the sector, particularly for homebuyers," Mr. Hoang explained. 

On the other hand, housing affordability remains a key concern as price-to-income ratios reach levels seen in major Asian cities. Ensuring long-term affordability will be essential for maintaining sustainable demand and investor confidence. 

The market’s long-term outlook remains positive 

Mr. Nguyen Nhat Hoang emphasized: "While short-term volatility may persist, industry leaders who prioritize adaptability, financial resilience, and customer-driven strategies will be best positioned to capitalize on the next growth cycle." 

To navigate this evolving landscape, real estate enterprises must work closely with the government and regulatory bodies to remove legal barriers, strengthen governance, diversify product offerings, and expand strategic partnerships to enhance competitiveness. 

For further details:

• Analyst presentations at the event (Vietnamese version): HERE 

• Analyst presentations at the event (English version): HERE

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The "Vietnam Credit Spotlight 2025" Recap Series summarizes key insights from the conference, offering in-depth perspectives on economic outlook, credit ratings, banking systems, corporate performance, and capital markets. This series serves as a valuable resource for businesses and investors looking to shape their strategies in the evolving economic landscape.

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About FiinRatings 
FiinRatings, a member of FiinGroup and technical partner of S&P Global Ratings, is a licensed credit rating agency under Vietnam’s Ministry of Finance. Our services include credit ratings, green bond verification, and independent evaluations (Second Party Opinion - SPO), catering to issuers, lenders, and investors across diverse sectors in Vietnam. 

FiinRatings’ SPO services provide independent evaluations of financial instruments, policy frameworks, or transactions aligned with principles set by global institutions like the International Capital Market Association (ICMA) and the Climate Bonds Initiative (CBI). Notably, FiinRatings is the first approved verifier for CBI Climate Bond Standards in Vietnam. 

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