The Ministry of Construction (MoC) has proposed controlling the bond issuance activities of real estate enterprises but not tightening investment in real estate bonds.
Recent property firm scandals have shaken the stock market, blowing tens of trillions of Vietnamese dong and making investors feel the pain of loss when the market was in free fall.
After a brief hiatus, property companies have been resuming sales of developments and revealing their post-Covid-19 business plans since the beginning of May.
Property firms were gearing up preparations to tap the opportunities from the post-pandemic recovery of the real estate market which was predicted to soon back to its feet.
Property firms were the top bond issuers in the first four months of this year but the race of issuing bonds was creating risks as many had much higher outstanding bonds than their equities, according to the Ministry of Finance.
Last month, property developer Vingroup unveiled plans to sell 20 million non-convertible bonds at VND100,000 (US$4.39) each in two phases without any covered warrants or guaranteed assets.
The Government should offer preferential policies for property firms which develop green urban areas, said Do Viet Chien, general secretary of Viet Nam Real Estate Association.
With lending to the property sector almost surely to be tightened,
analysts are calling on real estate firms to securitise their projects
and list their shares on the stock markets to raise money from the
public.