Shortage of Real Estate Capital, How To Raise Capital?
The business representative of The Ky Real Estate Corporation, Mr. Pham Thanh Hung said that Real Estate products are very diversified. Many property businesses are facing capital difficulties, especially with small investors. In fact, there are 3 main capital sources which are raised for the market including ownership capital (business owners, shareholders, and strategic shareholders), bank loans and capital raised from customers. According to PhD Tran Kinh Chung, CIEM in Vietnam, bank loans play a very important source in real estate market. However, the important one does not meet the demand of development because the Vietnam real estate market needs more capital than that.
 
Phd Vu Dinh Anh, Institute for Price Market Research said that :  there are few long-term capital ( from 1-3 years to ten years), mainly comprising of credit, business capital, FDI, which do not meet the demand of market. That makes the short-term capital be raised as well. Besides there was a period in which ‘hot’ capital was raised ( raised from people, ‘hot’ bank loans, people’s own capital, temporarily appropriated funds) exceeded, creating fevers in the market, creating bubble, raising risks in the financial market. It’s necessary to manage the capitals so as to decrease risks. In a forecast for this year, bank credit for real estate market is growing slightly but it will not improve the proportion of total outstanding loans.

Besides the ways of traditionally raising capital such as bank loan, investment saving funds etc., these of stock market, real estate bond, re-mortgage market, raising capital from potential investors and FDI are considered.

According to PhD Tran Kim Chung, it’s necessary to build the trust of real estate business so as to absorb capital from potential investors; simultaneously increase M&A and other joint-venture models. Besides, property business needs to determine demands and design capital plans so as to be active in business and stabilize the market. Moreover, enhancing the attraction of capital on stock market through listing on stock exchange or raising capital from foreign investors. That creating real estate financial system based on some model from developed countries should be considered.
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