By late afternoon of 04/04, the Credit Department of economic sectors (State Bank) has general information on the “4-parties chain” credit product for the field of real estate and building materials.

According to this Department, the long lasting frozen of real estate market has a strong impact to the relevant economic sectors; causes difficulties to the construction materials sectors such as iron & steel, cement, ceramic brick, construction glass ... ; makes workers unemployed; makes bad debt in the real estate sector highly increased; reduces the real estate salability, with the result that it is difficult for the banks to lend; causes the market imbalance between supplying and demanding so the people with actual demand hard to get the house ...


The lack of trust has made the economic transactions (construction materials business, unfinished constructions; payment by schedule, payment of the constructions and construction materials...) of the real estate market face difficulties.


The real estate market has large-scale, it widely and deeply impacts on the lives of all stratums and directly relate to the credit, construction, construction material, and labor markets... so it directly impacts on the growth rate of the economy.

Thus, the Government has directed the functional departments on deploying the solutions to remove the difficulties for the above mentioned sectors.

Six main objectives


During the past time, some solutions have been deployed, but the market is still in difficulties. According to the Credit Department of economic sectors, the reason is due to the lack of mutual trust between the partners in the construction chain, this makes the economic transactions (building materials business, unfinished construction; payment by schedule, payment of the construction and construction materials...) of the real estate market facing difficulties.

On the other hand, bad debt of the real estate sector tends to decrease at the end of 2013 but it remains high.

To strengthen the trust between the members in the construction / real estate chain, the commercial banks play an important role in supervising the cash flow in the chain to ensure that the money is used for the right purpose and the right objects.

The State Bank is studying to promote the lending according to the 4-parties chain model. Accordingly, the banks enter into 4-parties chain contracts between investor, contractor, construction material supplier in order to control the cash flow in such as safe and effective way.

The State Bank sets 6 main objectives for this “4-parties chain” credit product.

Firstly, remove the difficulties for the real estate market, promote the consumption of real estate inventories and construction material inventories.

Secondly, remove the capital difficulties for the basic investment and construction projects to continue the investment, limit the unfinished and wasteful investment; create favorable conditions for companies with bad debts to borrow capital, help the projects having enough capital to deploy and complete as scheduled, and ensure the quality of the project.

Thirdly, improve the cooperation and coordination between the credit organizations in controlling the cash flow; ensure the loan to be used for right purpose, improve the credit quality, and reduce bad debts in the banking operation.

Fourthly, strengthen the trust, improve the business trust between the members in the chain, create five “securities” in the basic construction: the credit organization feels secure about credit issuance, the investor feels secure about the investment, the contractor feels secure about the construction, the material and equipment supplier feels secure about the supplying; the buyer feels secure about capital contribution.

Fifthly, minimize the duplication of credit supply, save the loans for the project investments.

Sixthly, improve the publicity and clearness in the field of basic construction investment, contribute to the anticorruption and loss that causing waste and negativeness.

Generally speaking, the implementation of the “4-parties chain” credit product to control the cash flow to be used for the right purpose creates the trust in market. It promotes the economic transactions in the activities of investment – construction – real estate business, contributes to solve the difficulties for the businesses, reduces the inventories of construction materials and real estate.

The scope of application of the “4-parties chain “ credit product program studied by the State Bank is not only in the field of real estate but also in the field of basic construction, including several transport and energy projects in order to promote the credit growth and the economic development.

The 50-trillion VND package of VNCB is “meaningful”

“About the 50-trillion VND credit package” recently announced by Vietnam Construction Bank (VNCB), the Credit Department of economic sectors evaluates as “a meaningful development orientation to support the real estate market and construction materials”.

However, which banks VNCB shall cooperate, and how much shall depend on the agreement of VNCB with other banks. According to VNCB, they only lend 10 trillion VND of the “50-trillion VND credit package”, that is similar to the rate registered with the State Bank: the total finance amount for 33 projects is 10,715 billion VND.

“The lending of VNCB in particular and of the 4-parties chain in general shall be carried out as usual; the difference is that, in the past time, each bank lends to each party desultorily, now there is a chain between the banks and the parties to control the cash flow to be used for the right purpose, which shall create the trust in the construction field”, explained by the Credit Department.


Minh Đức - VnEconomy