New guidance to curb speculative lending

The prime minister has called for tighter credit on speculative real estate activities while prioritising capital for genuine housing demand, a move expected to prompt property developers to seek alternative funding sources.

- By Ngoc Lien

Some developers plan to shift from bank loans towards bond issuance to finance new projects

At a late-February meeting of the Central Steering Committee on Housing Policy and Real Estate, Prime Minister Pham Minh Chinh requested the State Bank of Vietnam (SBV) to strictly control lending to speculative real estate segments while directing credit towards homebuyers with real housing needs.

Earlier, in a document sent to credit institutions in early January regarding credit growth control, the SBV requested that lenders ensure outstanding loans to the real estate sector do not grow faster than their overall credit growth rate compared to the end of 2025.

According to data from the SBV, real estate credit expanded by around 22 per cent in 2025. However, many experts argue that if consumer loans related to property, including home purchases, renovations, and mortgage-backed borrowing, are fully accounted for, the actual growth rate could reach 28-30 per cent, approaching the financial system's risk threshold.

Against this backdrop, the SBV has issued guidance to commercial banks on credit growth control for 2026, targeting system-wide expansion of about 15 per cent. The move clearly signals a shift in policy orientation from scaling up to improving quality.