Vietnam's GDP grew 5.62 percent in the first nine months of 2014, alongwith accelerating foreign investment that increased exports andmanufacturing, according to a report released by CBRE Vietnam.
By the end of August, as reported by the State Bank of Vietnam,credit in the real estate market had expanded by 9.85 percent comparedto the beginning of the year, higher than the credit growth for theentire economy (5.82 percent) and other sectors.
However,credit growth projected for the first eight months was only 4.5 percentyear-on-year, half of the target for 2014 and despite government effortsto gradually lower lending rates from 20 percent in 2011 to the current13 percent.
Some banks in the first few months even offered lending rates as low as 7.5 percent to 8.5 percent.
The Vietnam CCI (consumer confidence index) followed the trend of thestock market (VN-Index) closely, with both increasing since January,according to a consumer survey conducted by ANZ – Roy Morgan.
Almost 60 percent of respondents expect economic conditions in Vietnamand their personal family situation to improve next year.
Arecovery in consumer confidence may be a good sign for credit growth inthe last three months of the year, according to CBRE.
Theperformance of the economy is also supported by investment in themanufacturing sector, which remains the most significant sector forforeign investment, accounting for almost 70 percent of total FDI.
The Republic of Korea has overtaken Japan as the biggestforeign investor. Samsung has invested nearly 8 billion USD in Vietnamwhile Lotte Mart plans to double its current number of stores to2020.
Following manufacturing, the real estate sector is rankedsecond in FDI, accounting for 11 percent, equivalent to 1.2 billionUSD. Large amounts of money are expected to flow into southern realty.
There are several large real estate projects, including SmartComplex by Lotte in HCM City's Thu Thiem Area (2 billion USD) andAmata City Long Thanh from Amata in Dong Nai province (530 million USD).
CBRE said there would also be additional investment in portsin HCM City, which will be replaced by mixed-use projects including SaiGon New Port, Nha Rong-Khanh Hoi Port and Ba Son Shipyard.-VNA
By the end of August, as reported by the State Bank of Vietnam,credit in the real estate market had expanded by 9.85 percent comparedto the beginning of the year, higher than the credit growth for theentire economy (5.82 percent) and other sectors.
However,credit growth projected for the first eight months was only 4.5 percentyear-on-year, half of the target for 2014 and despite government effortsto gradually lower lending rates from 20 percent in 2011 to the current13 percent.
Some banks in the first few months even offered lending rates as low as 7.5 percent to 8.5 percent.
The Vietnam CCI (consumer confidence index) followed the trend of thestock market (VN-Index) closely, with both increasing since January,according to a consumer survey conducted by ANZ – Roy Morgan.
Almost 60 percent of respondents expect economic conditions in Vietnamand their personal family situation to improve next year.
Arecovery in consumer confidence may be a good sign for credit growth inthe last three months of the year, according to CBRE.
Theperformance of the economy is also supported by investment in themanufacturing sector, which remains the most significant sector forforeign investment, accounting for almost 70 percent of total FDI.
The Republic of Korea has overtaken Japan as the biggestforeign investor. Samsung has invested nearly 8 billion USD in Vietnamwhile Lotte Mart plans to double its current number of stores to2020.
Following manufacturing, the real estate sector is rankedsecond in FDI, accounting for 11 percent, equivalent to 1.2 billionUSD. Large amounts of money are expected to flow into southern realty.
There are several large real estate projects, including SmartComplex by Lotte in HCM City's Thu Thiem Area (2 billion USD) andAmata City Long Thanh from Amata in Dong Nai province (530 million USD).
CBRE said there would also be additional investment in portsin HCM City, which will be replaced by mixed-use projects including SaiGon New Port, Nha Rong-Khanh Hoi Port and Ba Son Shipyard.-VNA
