Banks continue to boost real estate lending as growth runs eight times the economy’s average, with sector still seen as having significant potential

Real estate business credit surged by more than 11% in just the first two months of the year, far outpacing the overall economy’s growth and signaling that banks are continuing to pour capital into the sector. In a newly released report, the Ministry of Construction, citing data from the State Bank of Vietnam (SBV), shows that as of February 28, 2026, outstanding credit for real estate activities reached over 2,200 trillion VND, up about 11.7% from Q4 2025 (an increase of more than 233 trillion VND) and up 43% year-on-year. Earlier, according to SBV data, credit growth to the economy in the first two months of 2026 stood at 1.4%. Accordingly, growth in real estate credit was more than eight times the national average. According to the Ministry of Construction, credit for urban development and housing project investments stood at about 784 trillion VND; credit for land-use rights loans at 255.352 trillion VND; credit for industrial park and export processing zone projects at more than 139.000 trillion VND; credit for tourism, ecology and resort projects at 84.281 trillion VND. The data show that funds are most concentrated in urban development and housing projects, accounting for 35% of total real estate credit, up 24.1% from Q4 2025. The Ministry of Construction regards these figures as evidence that developers are accelerating project execution, a positive signal that may improve housing supply in the near term. Additionally, other segments such as industrial parks, resorts, and land-use rights also posted growth, but at slower paces, indicating credit is prioritizing sectors with higher liquidity and faster capital turnover. What bank leaders say about the real estate sector? During the 2026 bank annual general meeting season, the issue of real estate credit remained a key topic of discussion. Assessing Vietnam’s real estate sector, VPBank Chairman Ngo Chi Dung said that although recent rate hikes have exerted significant pressure on the real estate market, in the long term the sector still holds substantial growth potential. "Indeed, the recent rise in interest rates has weighed heavily on the real estate sector. However, viewed over the long term, Vietnam’s urbanization rate is currently less than 40%, while China is around 77%. This indicates that in the next 10–20 years, demand for housing in Vietnam will remain strong," Mr. Dung said. According to VPBank’s chairman, the core issue is not whether to invest in real estate, but to choose the right segment. He noted that real estate is not a uniform market but includes segments such as resort real estate, industrial parks, commercial real estate, and housing; housing itself is divided into social housing, mid-range, high-end, and ultra-high-end. "We cannot view real estate as a single block. Some segments serve investment demand, but others serve real housing needs. The important thing is to identify the segments with real societal demand," he added. Based on this, VPBank will continue to regard real estate as an important sector but will adjust its lending strategy to be more selective, prioritizing segments tied to real demand and broad affordability. Speaking on this topic, VPBank CEO Nguyen Duc Vinh said the State Bank has tightly controlled real estate lending to limit bubble risk and ensure financial security—a policy VPBank believes is correct. "But real estate remains a very important sector for the economy. The demand for home ownership is one of the essential, large needs of people," Mr. Vinh said. As a result, VPBank will not close the door on real estate but will adjust its credit strategy. The bank will focus capital on housing projects meeting real demand, especially social housing and the mid-market segment. Conversely, resort projects or high-end segments driven by speculation will see reduced funding. "Lessons from financing projects with weak legal status and capital tied up for 3–4 years have led us to tighten risk management processes even further," Mr. Vinh said. Speaking about real estate, Techcombank Chairman Hồ Hùng Anh also assessed that the sector has contributed significantly to Vietnam’s development over many years and will continue to do so: "This is a sector with substantial potential as well as risk. In the next 5–10 years, real estate will still develop in Vietnam. The issue is how banks manage risk." For Techcombank, the bank will only select projects with solid liquidity and full legality, focusing on projects with strong fundamentals and reliable clients, including both corporate and individual borrowers. Techcombank does not finance projects with incomplete legal status or those that may lack liquidity. The Techcombank chairman stressed that the bank’s non-performing loan ratio in the real estate sector, for both individuals and enterprises, remains below 1%. The actual capital recovery rate is 100%. "Any real estate asset, even if it falls into default, Techcombank can recover the full amount, at least the principal, after about 2–3 years," Mr. Hung Anh said. At SHB’s AGM this year, answering shareholders on how real estate lending affects business, Chairman Do Quang Hien said the bank has a relatively large share of real estate lending but remains compliant with SBV regulations and safety standards. He added that ministries and local authorities are resolving many project bottlenecks, helping reduce resource waste. According to Mr. Hien, real estate development has spillover effects to 41 other sectors, boosting production and business, increasing revenue and economic efficiency. SHB is currently financing many national infrastructure projects and flagship projects in major cities like Hanoi, Da Nang, Ho Chi Minh City and surrounding areas. "These are projects with high liquidity and also support housing demand, especially for young customers, as well as social housing and industrial real estate segments," Mr. Hien emphasized. SHB leadership stressed these projects bring meaningful revenue and are expected to contribute positively to the bank’s profit growth in 2026 and beyond. They also affirmed SHB’s adherence to current regulations and system safety. At ACB’s AGM, Chairman Tran Hung Huy highlighted the bank’s loan structure: outstanding real estate loans at ACB currently account for less than 5% of total lending, a relatively low level versus many banks. According to ACB leaders, this ratio acts as a safety buffer to limit risk when the real estate market faces tighter controls. Not only defensive, ACB also sees opportunities in this context. The bank can actively partner with financially solid real estate developers, especially in the mid-range housing segment—an area judged to have real demand and less volatility. [Update on Q1 2026 earnings of 14 banks: banks report profits up 268%]," the article notes.