Green credit growth in Vietnam has remained limited due to the lack of a clear legal framework, according to industry insiders.

VOV.VN - Prime Minister Pham Minh Chinh has signed a document requesting that relevant ministries, agencies, and localities remove obstacles to the real estate market which has been in limbo for months.

VOV.VN -Prime Minister Pham Minh Chinh underlined the importance of creating an open legal corridor in line with the country's conditions and circumstances, while chairing the Government’s monthly law-making session on March 27 in Hanoi.

Vietnam’s economy is well supported by its policy, but headwinds in the world’s financial market, with risks from the European and American financial systems, have caused concern.

Credit growth in the first months of this year slowed significantly due to high interest rates and firms’ poor health, raising concerns about rising bad debts.

As many countries plan to adopt the Global Minimum Tax Rate (GMTR) in 2024, experts are concerned that the entry into force of the rate would discourage foreign companies from locating their operations in low-tax countries.

Affordable home buyers can access preferential loans at rates 1.5-2% lower than the market average as part of a credit package worth around VND120 trillion (US$5.02 billion).

The State Bank of Vietnam (SBV) has recently granted the first credit growth quotas in 2023 to a number of banks, with a majority of them receiving lower rates than last year.

Information relating to the loosening of credit room, and commitments from the Ho Chi Minh City People's Committee and other agencies on removing hurdles to transactions have led to experts' positive views on the future of the property market.

Vietnam’s central bank net withdrew over VND30 trillion from the market last week as the banking system saw surplus liquidity due to slow credit growth.