Vietnam needs USD 31b for real-estate development: Deputy Minister
At a seminar held in HCM City September 21 on raising capital for development of the real estate market, Khanh said Vietnam currently has seven million people who need to buy or rent 150 million sq.m of housing at a cost of 300 to 400 trillion dong.
The tourism industry requires to build 22,500 hotel rooms costing three trillion dong (USD 166 million) by 2015, he said. Most real-estate executives attending the seminar admitted that their efforts to mobilise capital have not been satisfactory so far. But they said the most urgent problem is that Vietnam lacks a legal framework for setting up channels to indirectly raise capital -- like the remortgage market, real-estate bonds, retirement funds, and real-estate credit funds, the most popular way to raise capital in developed markets.
