Rising Risks from Cross-ownership between Real Estate Developers and Banks in Vietnam
Ho, Tuan; Nguyen, Tuan Huu; Nguyen, Trang Thi Ngoc; Tran, Tho Ngoc | February 2022
Abstract
China’s economic stability has recently been threatened by the debt problem of major real estate developers, with Evergrande being the most notable case. This has led to concerns that similar problems may happen to other countries in the region. In Vietnam, debates about this risk among policy makers and industry experts have intensified, as several real estate developers have recently emerged as major shareholders or key decision-makers in local banks.
This paper analyses the risks that this phenomenon poses to Vietnam’s banking system and discusses how Vietnam can handle this issue. We first review Vietnam’s banking reforms since 2011, focusing on the cross-holdings issue. We then link this to the risks posed by local real estate developers’ investment in banks, and discuss possible consequences. Finally, we recommend some policies and best practices that Vietnam can adopt to mitigate the risks.
Citation
Ho, Tuan; Nguyen, Tuan Huu; Nguyen, Trang Thi Ngoc; Tran, Tho Ngoc. 2022. Rising Risks from Cross-ownership between Real Estate Developers and Banks in Vietnam. © ISEAS Yusof Ishak Institute. http://hdl.handle.net/11540/14845.ISSN
2335-6677
Keywords
Tourism Development
Development Strategies
Economic Trends
Economic Impact
Economic Incentives
Green revolution
Bank ownership
Cross-holdings
Tourism policy
Development strategy
Development potential
Economic evaluation
Economic growth
Growth potential
Development models
Economic development
New technology
Rural planning
Aid coordination
Industrial projects
Infrastructure projects
Land
Real estate development
Central planning
City planning
Civic improvement
Urban renewal
Urban beautification
Urban transportation
Zoning
Hotels
Industry
Land Acquisition
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Citable URI
http://hdl.handle.net/11540/14845Metadata
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