Overview of Vietnam’s property market

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Real estate enterprises and construction material producers continue to face difficulties, as Vietnam’s property market remains stagnant. The minister of construction, Trinh Dinh Dung, expressed concern over continuing challenges for the year ahead.

The industry reached a total industrial production of VD 283.3 trillion (US$1.3 billion) in the first half of the year. Y-o-y, this was an increase of 5.2 per cent. According to HanoiRealEstate.com.vn, property prices of almost all market segments decreased and a number of transactions also slumped in the first half of the year.

Firms unable to balance their debts and capital nor retain production would go bankrupt, warned the minister. Not only has a negative impact on business effectiveness been witnessed, but, said the minister, the lives of labourers have also been adversely affected.

“The industry’s business will continue facing impediments for productions, sales, financial resources,” said the minister. Cement consumption reached almost 23.9 million tonnes and 3.2 million tonnes of cement was exported during the same period. Y-o-y, ceramic tile output was 3 per cent lower at 61.3 million sqm, according to the ministry’s reports.

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In hoping to offer a solution to the growing problem, the minister affirmed that the ministry would restructure the property market and focus on real estate segments that meet consumers’ demand, reported The Nation.

Over the coming year, the ministry will ask provinces, cities, and localities to implement housing development programmes. Furthermore, in a bid to support the consumption of construction materials, the ministry will undertake the national housing development strategies by 2020 as well as orientations by 2030.