Every move from the manager just wants the market to go into the framework, avoid the phenomenon of speculation, but not to close the capital doors. Therefore, real estate businesses that want to find capital must improve their own capacity before...
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In the past, if credit sources for basic deployment were restricted, real estate businesses immediately turned to capital market channels such as bonds or stocks. But now, when the management agency takes a series of drastic actions, the supporting channels are also gradually narrowing.
Before this fact, experts predict that, in the coming time, real estate businesses must be more active in introducing their own capabilities to be able to access capital channels.
"Prime Capital" LOWER
When it comes to real estate, it means making a big and long-term investment. In the world, in addition to capital of enterprises themselves, the main capital channel for the real estate market comes from the financial market.
In Vietnam, there is one more channel for real estate businesses that is prepaid by buyers. That is, businesses sell products formed in the future.
However, not right from the start of the project, the real estate business was able to collect the prepayment. In order to sell products formed in the future, businesses are forced to implement basic projects and must satisfy many conditions.
These conditions are specified very specifically in the Law on Real Estate Business and the Law on Land such as: for apartment buildings, the foundation must be completed; for separate houses, it is necessary to complete the construction of technical infrastructure systems (including roads, water supply and drainage systems, domestic electricity systems, public lighting systems)...
Therefore, real estate businesses in Vietnam still have to find "prime capital" sources in the financial market like in the world.
According to Dr. Hoang Van Cuong, Member of the National Assembly, Member of the Finance and Budget Committee of the National Assembly, Vice Rector of the National Economics University, there are many channels in the financial market, but these channels are getting narrower and narrower. with the real estate business.
In the traditional channel is bank credit capital, not only real estate enterprises but all enterprises in general of the economy must mobilize capital mainly based on the banking system. Because the development of the banking system has existed for a long time, and people are more used to depositing money in banks than other channels.
However, residents' deposits in banks are mostly short-term. This is in contrast to the long-term capital needs of real estate businesses.
“Banks have a principle, in order to ensure liquidity and avoid chain breakdown, they can only use a certain percentage of short-term capital for medium and long-term loans. This ratio is increasingly lowered by the State Bank. Therefore, it is increasingly difficult for banks to finance real estate projects," said Mr. Cuong.
Similar developments are appearing in other channels in the capital market such as securities and corporate bonds. Specifically, in the past, these were places that very well converted short-term capital into long-term capital. People with spare money for a few weeks can also buy stocks, then sell them, other people with idle money will buy them. Thus, the volume of shares issued has become the long-term value.
“Through the stock market and corporate bond market, people's short-term investment money will become long-term money. Real estate businesses have taken advantage of mobilizing capital in these two markets to make up for the shortfall in credit flows, "said Mr. Cuong.
In fact, the stock market and corporate bonds have grown strongly and gradually become an effective capital channel for real estate businesses.
According to data from SSI Research, in 2021 alone, real estate businesses have issued a total of VND 318,200 billion, accounting for 44% of the total amount of corporate bonds issued. Or like, a FiinPro statistic shows that, in 2021, about 20 real estate businesses plan to raise capital with an issue volume of nearly 1.7 billion shares, of which 1.1 billion shares are expected to be sold. offer to existing shareholders.
However, according to Mr. Cuong, in the recent period, there have been some unhealthy phenomena in the capital market. Typically, the stock market has the phenomenon of price blowing, making stock prices. As for the bond market, there is a hot growth, the issuers do not use the capital for the right purposes.
“Due to these developments, the management agency was forced to take a series of drastic actions like the past. Even within a year, the Ministry of Finance has issued 5 draft amendments to Decree 153 five times, but even the most recent version, it is still considered a very tight approach, "said Mr. Cuong.
SO WHERE TO FIND CAPITAL?
According to Mr. Nguyen Manh Khoi, Deputy Director of the Housing and Real Estate Market Management Department, Ministry of Construction, capital is one of the problems that cannot be ignored for real estate businesses. In countries around the world, the capital market and the real estate market are always closely linked.
In particular, if the real estate market and the capital market both increase, there is definitely a problem. But if the capital market stands still, the real estate market cannot develop either.
“Last time, except for a few real estate businesses with strong resources, most of the rest depended heavily on credit capital. After the credit squeeze, they switched to issuing bonds. Then when the bond heats up, there are many painful problems. Now, if we continue to tighten bonds, the real estate market will definitely not be able to develop," emphasized Deputy Director of the Department of Housing and Real Estate Market Management.
Therefore, Mr. Khoi said that in the report of the Ministry of Construction sent to the Government, this agency proposed to re-evaluate Decree 153 in the direction of clearly defining the issuer, needing to have other priorities or limitations. together.
Sharing the same opinion, Dr. Le Xuan Nghia said that there must be specific regulations on how much an issuer must have as collateral; How to mobilize start-ups and cooperatives without collateral?
At the same time, managers should monitor just enough for the corporate bond market to develop, and should not create a bad impression as many investors have perceived in the past few days.
On the other hand, Mr. Nghia shared, to answer the question of where to go to find capital, the real estate business itself must improve its own capacity. Because, every move from the manager just wants the market to go into the framework, avoid the phenomenon of speculation, but not to close the capital doors.
“All capital flows still flow according to market rules, only it flows in the right direction, not as rampant and easy as before. The elimination of weak businesses will sometimes help good businesses easily access capital, "said Mr. Nghia.
Also according to Dr. Nguyen Tri Hieu, instead of just raising capital domestically, many businesses have also turned to exploiting more resources from abroad. According to a study by the Ministry of Construction, as of March 20, 2022, the total newly registered, adjusted and adjusted FDI capital, capital contribution to buy shares, purchase of contributed capital by foreign investors reached over 8.9 billion VND. USD; equal to 87.9% over the same period in 2021. Among them, the real estate business ranked second among the fields attracting large FDI, with a total investment capital of nearly 2.7 billion USD; accounting for 30.3% of total registered investment capital.
“I believe, the cash flow in many other channels is still there. With Vietnam's macro-economy recovering well, if project owners can show potential plans and viable long-term strategic visions, it's not difficult to access capital," said Mr. Hieu.
By Vn Economy