Vietnam real estate and banking sectors face supply growth and liquidity shifts

Vietnam's real estate and banking sectors are undergoing significant shifts. Banks are entering a new competitive phase for home loans, moving beyond short-term low interest rates to offer long-term benefits such as 35-year loan terms and higher loan-to-value ratios. Vietcombank has launched a 20,000 billion VND credit package for housing projects, while TPBank is offering interest rate margin reductions.

However, the banking system faces liquidity challenges. As of late July 2026, credit growth (8.98%) has outpaced deposit growth (5.75%), creating a gap of 2.8 million billion VND. This imbalance increases the loan-to-deposit ratio (LDR) and puts pressure on banks to compete for capital.

On the property side, supply is recovering. In Q2 2026, 113 new commercial housing projects were licensed, a significant increase compared to previous periods. Despite this, absorption rates in Hanoi remain lower than in recent years, and buyers are increasingly prioritizing lifestyle amenities, infrastructure connectivity, and long-term community value over mere proximity to city centers.

Additionally, financial authorities are tightening oversight on bank accounts to prevent fraud. Banks are being advised to monitor suspicious activities, such as accounts used for rapid fund transfers or those linked to unauthorized POS transactions used for cash withdrawals.