Jan. 24 (Bloomberg) -- Vietnam’s stocks gained the most among major Asian indexes after a minister said government support for social housing would bolster the property market.
The VN Index rose for a second day, climbing 2 percent to 452.40 at close in Ho Chi Minh City, the biggest gain in two weeks. HAGL Joint-Stock Co., the second-biggest listed property developer, ended a three-day decline, jumping 6.2 percent to 27,300 dong. Cuu Long Petro Urban Development & Investment Corp. rose 2.4 percent.
The government has been taking measures to rescue the property market as part of its effort to address bad debt and bolster the economy. Its support for social housing including tax reductions and lower interest rates will be “an indirect stimulus” to “warm up” the property market, Minister of Construction Trinh Dinh Dung said in a television broadcast.
The minister’s comment “may be considered a supporting factor for the market,” Nguyen Hoai Nam, Hanoi-based deputy head of research at Maybank Kim Eng Securities Joint-Stock Co., said by phone. “The real-estate market has fallen a lot in the past few years, so it’s probably time for it to bounce back.”
The construction ministry suggested levying a 10 percent corporate income tax rate on income from social housing investment, a reduction from the current 25 percent rate, among measures to help the sector, Dung said.
Developers may have to cut prices of apartments in Hanoi, the capital city, by as much as 50 percent of their original values this year, CBRE Group Inc. said in its fourth-quarter report on its website.
To contact Bloomberg News staff for this story: Diep Ngoc Pham in Hanoi at firstname.lastname@example.org
To contact the editor responsible for this story: Darren Boey at email@example.com