As of the end of February, outstanding credit for real estate business activities reached nearly VND 1.49 quadrillion (approximately USD 58.7 billion), according to the State Bank of Vietnam, as cited in the Ministry of Construction's Q1/2025 housing and real estate market report.

This figure represents a 25% increase compared to the same period last year and a 2% increase from Q4/2024.

Among the credit categories, loans for urban area development projects and housing projects ranked second, with over VND 422 trillion (around USD 16.6 billion), following credit for other real estate business activities, which totaled over VND 484.4 trillion (about USD 19.1 billion).

Regarding bond issuance, the Ministry of Construction reported notable fluctuations in Vietnam’s corporate bond market during Q1, particularly in the real estate sector.

The total value of newly issued bonds reached VND 25.13 trillion (approximately USD 990 million), down 12% from the same period last year, marking the lowest level in five years. The primary reason for this decline was a lack of private placement activity.

Real estate companies accounted for approximately 30.3% of the newly issued bond value in the first three months of the year, equivalent to around VND 7.6 trillion (USD 299 million).

The real estate sector also led in bond buybacks, accounting for 58.6% of total early repurchase value, or approximately VND 11.36 trillion (USD 447 million).

For the remainder of 2025, a total of VND 181.89 trillion (USD 7.15 billion) in bonds will mature, with the real estate sector making up 53.1%, or VND 96.53 trillion (USD 3.78 billion).

Notably, in Q1, there were three new cases of delayed interest payments, totaling VND 4.85 trillion (USD 191 million), primarily from real estate and cement companies.

The Ministry of Construction noted that while the figures show a cautious recovery in new bond issuance, the real estate sector only contributed 30.3% of the market’s total issuance value.

Despite a 68% year-on-year increase in public offerings, most real estate firms remain hesitant to return to aggressive capital mobilization through bonds as in previous years.

Regarding FDI, data from the Foreign Investment Agency under the Ministry of Finance showed that by the end of March, total registered FDI into Vietnam reached nearly USD 10.98 billion, up 34.7% compared to the same period last year.

The real estate sector ranked second, attracting more than USD 2.39 billion in investment, accounting for 21.8% of the total registered capital, up 44.1% year-on-year.

FDI into Vietnam’s real estate in Q1/2025 posted strong results in both growth rate and capital quality.

According to the Ministry of Construction, this is a positive signal reflecting international investors’ confidence in Vietnam’s market. It is also a key driver for the recovery and development of urban, industrial, and tourism infrastructure.

Notable projects include the Golf Course and Hotel Complex project in Hung Yen, with a total investment of USD 1.5 billion, and the Phuong Trach Tower project in Hanoi, with an investment of approximately USD 1.55 billion in infrastructure and land.

Hong Khanh