According to Giau, by the end of October 2008, outstanding real estate loans had reached VND61tril. These outstanding loans can be divided into nine categories. Loans for infrastructure were VND5,647bil, for industrial zones and export processing zones VND1,380bil, new urban areas VND6,093bil, buildings for lease VND5,773bil, trade centres VND2,439bil, funding house construction and repair VND18tril, funding house construction for resale VND9,587bil, land use VND5,571bil, and other business types VND6,237bil.

Giau said that the non-performing loans in HCM City prove to be inconsiderable, and within banks’ control. Giau said that office buildings are still far from being able to meet the demand; therefore, loaning to fund office building construction is not a concern. It is also un-risky to fund the development of industrial zones and export processing zones.

According to Ho Huu Hanh, Director of the HCM City branch of the State Bank of Vietnam, a lot of local banks have reduced loans to the real estate sector, while focusing on import-export activities. Therefore, real estate credit has dropped to 15.4% of total outstanding loans.

Hanh affirmed that the real estate loans are still within reach. The bad debt ratio of banks in HCM City is 2.14%, while the allowed level is 5%.

By the end of October 2008, HCM City had 151 projects, 56 of which had been disbursed (VND9,300bil).