Total outstanding loans to the real estate sector were estimated at around VND348,000 billion, nearly doubling the reported figure by banks.
According to the 2011 report by the National Financial Supervisory Committee, the real estate sector’s bad debts reached VND56,770 billion, up 8.4 times.
HCM City led the nation with a real estate credit ratio of 44.94 percent or VND82,300 billion, followed by Hanoi, 25 percent or VND44,200 billion.
Of total real estate loans, short-term loans accounted for 16.34 percent, while medium-and long-term loans made up 83.66 percent.
Commercial joint stock banks had the highest number of bad debts, at 62.77 percent. State-owned commercial banks saw a slight decrease in bad debts, from 30.52 percent in the first half of last year to 29.46 percent at the end of the year.
The report said that the local real estate market is facing difficulties as supply exceeds demand.