The collapse of Silicon Valley Bank on March 10, 2023, due to its exposure to high-risk borrowers such as technology and startup companies, had global implications. The situation is similar to that of Vietnam’s real estate companies including FLC Group, Van Thinh Phat Group, and Novaland. These companies have also faced challenges and controversies in recent times. Stay informed about the latest developments in Vietnam’s real estate market and the global financial landscape.
Vietnam Real Estate in the past 10 years
Vietnam’s real estate market has emerged as one of the fastest-growing in Southeast Asia. After suffering from a housing bust in 2009, the market recovered in 2013 and has seen constant and fast growth since. The quick surge in individual wealth has made property more affordable for more Vietnamese people, resulting in an increase in new developments and a boost in property prices.
The Arrests of Large Real Estate Conglomerates
However, some major real estate conglomerates have faced issues and controversies that have shaken the industry over the past year.
FLC Group is a Vietnamese conglomerate with stakes in industries such as real estate, aviation and tourism. Lawyer Trinh Van Quyet founded it in 2001 as SMiC and became the second billionaire in Vietnam’s stock market back in 2016, with assets totaling 22.7 trillion dong ($1.02 billion).
In 2022, authorities arrested him for stock market manipulation. On January 10, Quyet sold 74.8 million FLC shares without any advance reports or notifications as required by regulations, triggering public concern and pushing the stock market into chaos.
Next is Van Thinh Phat Group. It was known for properties such as the Time Square building on Nguyen Hue Walking Street and Winsor Plaza in District 5. However, there was a problem.
Learn more about the Arrests of FLC Group and Van Thinh Phat Group on this video. Attorney Ken Duong will also share his thought about Novaland situation and his prediction about it.
Learn more about Vietnam Real estate Investment
We have created many videos about doing business in Vietnam, covering topics such as the retail market, real estate, and investing in Vietnam. Check out our YouTube channel for more Vietnam news. If you want to invest in real estate or apply for an investor visa, feel free to contact us.
