Vietnam’s property market is feeling the strain as developers’ debt piles up. Novaland alone borrowed VND72.41 trillion, about 28% of its assets.

The rising debt of Vietnam’s property developers is a warning sign for the whole economy. Understanding how large the borrowings are and why companies turn to insiders helps readers see the potential impact on housing and growth.

According to its consolidated financial statements for the third quarter of 2026, Novaland’s total outstanding borrowings were about VND72.41 trillion ($2.78 billion), which equals 28% of its assets. Short‑term debt alone reached VND29.75 trillion, or roughly 41% of the total debt.

Even though Novaland reported an after‑tax profit of more than VND1.1 trillion ($42.4 million) in the third quarter, its cumulative operating cash flow for the first nine months stayed negative at over VND5.36 trillion ($206 million). Overdue interest payments also exceeded VND5.24 trillion ($202 million).

Another stressed developer, Quoc Cuong Gia Lai, showed how some firms rely on executives’ families for cash. The company received a VND186 billion ($7.15 million) loan from Nguyen Ngoc Huyen My, the daughter of its General Director, among several other loans from relatives of senior managers.

These figures reveal that heavy borrowing and the use of insider financing create real risks for Vietnam’s housing market and broader economy. If cash‑flow problems persist, they could limit new construction and affect related industries.