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A representative of No Va Real Estate Investment Group JSC (Novaland) said lending rates have risen since the start of 2026, increasing the company’s financing costs and squeezing profits. Some projects signed loan agreements in 2025 with a planned duration of about 5–6 years, while disbursement was typically expected over 2–3 years. However, by 2026 banks signaled tight disbursement room of around 10–20%, leaving limited funds available. With sales progress and handover timelines scheduled in advance, tightening credit room can affect construction progress and contractor payments, requiring renegotiations with relevant parties and adjustments to handover plans. High interest rates also remain a major hurdle for home buyers.
Le Huu Nghia, Director of Le Thanh Company, said social housing projects are eligible for preferential financing, but access to funds is still very difficult. He attributed the problem to a 145,000 billion VND package for social housing, implemented by nine commercial banks. The program offers rates below market and is not counted toward credit limits, applying to both developers and homebuyers, with loan tenures up to 20 years.
According to Nghia, the social housing loan package carries a 6.1% preferential rate. However, when he attempted to borrow, banks rejected the request. Banks said savings deposit rates are high, and lending at 6.1% would cause losses. They also indicated that if the proposed rate were adjusted to match social housing project rates, they would not agree due to potential regulatory liability for lending at rates above the prescribed objects.
Rising interest rates have also pushed up construction input costs by 10–30%, while social housing sale prices were fixed earlier. Without timely remedies, Nghia warned that construction progress could slow, making it difficult to achieve targets of 28,000 social housing units in Ho Chi Minh City this year and 30,000 next year.
To cope with funding constraints, many developers have adopted flexible payment methods, allowing buyers to pay monthly installments near rent levels. Some companies extended payment schedules after handover or offered interest support for multiple years. Certain projects apply fixed rates for 3–5 years or cap rates at 8–9% to help buyers manage early-stage financial risk.
Lease-back commitments and guaranteed yields, along with steep discounts for early payment, are also being implemented. Developers tailor payment plans for individual customers by adjusting progress-based terms, discounts, or incentive swaps.
Many developers have adjusted production and business plans. DIC Corp (DIC) presented to shareholders a consolidated revenue plan of 3,000 billion VND and pre-tax profit of 600 billion, down 37% and 27% respectively from the prior year. For investment, the parent company intends to allocate over 4,371 billion VND to key projects, complete procedures, and resolve legal issues on several projects, and break ground on two projects when conditions permit.
Phat Dat Real Estate Development Corp (PDR) plans to raise up to nearly 2,000 billion VND from a rights issue to current shareholders at a 1:5 ratio. Most of the funds, 1,550 billion VND, are planned to implement projects, including contributing capital to acquire an equity stake in a riverside project in Da Nang and acquiring shares in a company that is the investor in a project on Cach Mang Thang 8 in Ho Chi Minh City.
An expert said that instead of relying primarily on bank loans, firms should diversify funding sources. The priority is to unlock capital for the economy, especially real estate, amid pressures from rising interest rates, exchange rates, and inflation. The expert called for long-term measures such as developing the capital market and expanding new fundraising channels.
The expert noted that the story of capital flow relief is not new and said current conditions share similarities with 2022 when rates rose and credit tightened, though not as acutely. External factors such as fluctuating gasoline prices can raise input costs and inflation risk, while currency pressures can hinder monetary easing and keep interest rates high.
While the current pressure was described as not too large, the expert emphasized that it still poses risks and that long-term solutions are needed. The focus should be on developing the capital market, particularly corporate bonds, not only for real estate but for the broader economy, to diversify funding channels in the near term.
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