Japan Housing Finance Agency meets with Vietnam Ministry of Finance
On the morning of January 16, 2024, at the headquarters of the Ministry of Finance, representatives of the Ministry of Finance departments met and worked with a delegation from the Japan Housing Finance Agency, led by Mr. Takahiro Kimura, Director of International Affairs and Research Department, Japan Housing Finance Support Agency.
On behalf of Vietnam Ministry of Finance, Mr. Pham Tuan Anh, Deputy Director General of International Cooperation Department, welcomed Director Takahiro Kimura and the delegation from Japan Housing Finance Agency on their visit to Vietnam Ministry of Finance.
Mr. Pham Tuan Anh expressed high appreciation for the Agency's contributions to the housing market, focusing on business activities supporting securitization to facilitate private financial institutions in providing fixed-rate housing loans, as well as offering housing loan insurance services to promote the provision of private housing loans and loan origination services in Japan.
Director Takahiro Kimura, on behalf of the delegation, appreciated the warm reception of the Vietnam Ministry of Finance and the support of the Ministry in providing information about the challenges the Agency faces in understanding the housing and housing finance market in Vietnam.
Message from the President of the Japan Housing Finance Agency - Source: 2023 Report
At the meeting, Japan Housing Finance Agency provided updated information about their survey on the housing market and housing finance in Vietnam, along with current situations and challenges based on the survey results. The survey focused on issues such as housing supply and demand, market mechanisms, and difficulties faced by homebuyers in accessing housing finance, as well as challenges in the lack of personal credit information of financial institutions. Additionally, Japan Housing Finance Agency expressed a desire to hear opinions and updates from the Vietnam Ministry of Finance on three main issues: matters related to the establishment of a securitization market for mortgage-backed assets, Vietnam's housing tax policy, and green bond issues.
Housing market survey by Japan Housing Finance Agency - Source: JHF survey
In response to the concerns of the Agency, a representative from the State Securities Commission opined that although the stock market has developed stably over the years, securitization activities to convert debts into market-traded securities would entail risks due to the lack of a legal framework for securitizing debt and the underdevelopment of Vietnam's debt trading market compared to other countries. Regarding the development of the green bond market, a representative from Department of Banking and Financial Institutions of the Ministry of Finance outlined several basic tasks that need to be completed, such as perfecting the legal framework, classifying environmentally protective activities and investment projects with environmental benefits according to Vietnam's economic sectors, and establishing criteria for screening, thresholds, and targets for environmental protection activities.
Both sides expressed trust and hope that, based on the strong foundation of relations between Vietnam and Japan, as well as between the Vietnam Ministry of Finance and Japanese organizations and businesses, the challenges in the housing finance sector in Vietnam will be gradually resolved, laying the groundwork for the development of the housing and housing finance market in the future.
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