29 Jan 2018
VIETNAM: Manufacturing and Agricultural Businesses Now Lending Priorities
Lending to export-oriented manufacturers and agricultural businesses is to be prioritised over extending credit to the securities or real estate sector following a new directive from The State Bank of Vietnam (SBV), the country’s central bank. The ruling applies to all of the country’s banks and other lending institutions, including all overseas banks active within the country.
The move has resulted from the failure of a major real estate project in Ho Chi Minh City, which saw an overseas contractor pulling the plug on a development following a funding shortfall. As a consequence, the SBV has reassessed the country’s investment priorities, while also urging all lenders to play close attention to the financial well-being of borrowers and to monitor the progress of any related real estate projects.