Capital is flowing into Vietnam’s real estate and equity markets, injecting renewed momentum for growth and structural transformation. Yet, alongside these emerging opportunities, familiar risks continue to loom. Capital shifts across the economy Since the beginning of the year, Vietnam’s financial markets have shifted from caution to optimism. One of the biggest winners has been property developers, who are gaining from increased credit flows. By July, credit in the economy had grown nearly 10% compared to the beginning of the year, according to the central bank. However, lending to the real estate sector increased at a much faster rate. At Techcombank, real estate business loans increased by 21.5% in the first half, nearly doubling the bank’s total loan growth of 11.6%. Similarly, MB reported a 33% increase in real estate loans, HDBank 22%, and SHB 28%. Real estate loans at Techcombank now account for 33.6% of total lending, while personal loans increased by only 11.5%. In contrast, VPBank’s real estate business lending grew just 3.2%, but home loans to individuals surged nearly 16%. Vietnam’s efforts to increase GDP and credit growth, along with low interest rates, have led to faster lending compared to last year. The Government recently raised its […]