With the issuance of Resolution No.01/NQ-CP, the Vietnamese government has affirmed that it will strictly control credit for potentially risky sectors, especially real estate, beginning this year.
In Directive No. 04/CT-NHNN issued on August 2, 2018 by the State Bank of Vietnam (SBV) on further implementation of the key tasks and solutions of the banking industry in the second half of 2018, the SBV continued to affirm focus on production and business, and other priority sectors, and strict control of credit as well.
Vietnam will strictly control credit for risky sectors, including real estate
Along with these measures, the SBV continued to reduce the proportion of short-term deposits eligible for use for medium- and long-term loans and increasingly risky real estate loans. According to SBV regulations, in 2018, commercial banks are only allowed to use 45 percent of short-term deposits for medium- and long-term loans, including for real estate. This ceiling will be reduced to 40 percent on January 1, 2019.