The source for all Tourism, Hotel and Real Estate news in Phuket.

Can Interest Rate Cut Save Vietnam's Property Market?

Insider Story Locations

Find our most recent stories tagged by their locations. Click here for more story locations.

Posted: 09 Jul 2012 | 6:00 am

Vietnam remains paradoxically both the land of promise and equally disappointing for foreign investors.

Over the past few years high interest rates and double-digit hyperinflation have dogged the real estate sector.

Recently Vietnam's State Bank cut deposit interest rates which ran as high as 13% down to a single digit 9%.

The benefit is expected to be two-fold. First for businesses, lower interest rates may stimulate investment. Second for investors holding cash in bank deposits the lower rates may create more interest in shift portfolios to property.

So far the market reaction has been lukewarm given that lending rates still command a considerable premium.

Volatility remains the sworn enemy of businesses and certainly this remains a key to the current regime of negative investment sentiment.

DO YOU LIKE THIS?

Which is the best RD and what are the interest rates of recurring deposits in banks and in post offices??

Chris, 04 Aug 2012 | 4:08 pm

Insider up to the Minute

Cool Hunting - On the Web

Too cool for school Patong boutique hotel Ella
www.theellagroup.org

Burned out on TripAdvisor, check out gogobot
www.gogobot.com

Fast growing online restaurant review site
www.zomato.com

PHUKET WEATHER

The Green Report

A column featuring environmental issues and conservation around the island. Click here for more Green Reports check out the latest story from the leading experts:

Vietnamese Green Architect Hits Limelight

Vietnam's Vo Trong Nghia is continuing to attract worldwide attention over unique sustainable design.

They Call It Parklet

Now here is a newly coined term on the environmental horizon - Parklet.