The State Bank of Vietnam has sought out public opinions on new draft for amending and supplementing Circular No. 36/2014/TT-NHNN (“Draft”) pursuant to which the Draft is intended to reduce maximum rate for short-term loan to medium-term and long-term loan from 60% to 40% and classify real property into property group which indicates a risk factor of 250% instead of 150%. This Draft has attracted attention of customers, real estate companies, and credit organizations.
The Real State Association of Ho Chi Minh City said that the real estate market of Vietnam is mainly depends on bank loan and deposits from customers. Therefore, if the Draft would be made into law, the real estate market might be negatively affected. Nonetheless, the State Bank has confirmed that the Draft would not be able to reduce credits accrued to the real estate market. In the eyes of the public, contrasting point of views on impact of the Draft is far from being over. This Draft is still in the consultation process before it is officially adopted by the State Bank of Vietnam.