Illustrative photo (Source:VNA)
Hanoi (VNA) - Hundreds of trillions of dong in preferential loans will be provided for social housing development, according to Chairman of the Vietnam Real Estate Association Nguyen Tran Nam.

Nam said at an online forum hosted by Dien Dan Doanh Nghiep (Business Forum) newspaper on May 18 that commercial joint stock banks with controlling State stake-holdings would have to spend 3 percent of their total outstanding loans for developers and buyers of social housing projects.

This 3 percent would be equivalent to some 300-400 trillion VND (13.4-17.9 billion USD), Nam said, adding that there would be no deadline for this loan package.

Initial preparations are underway, with the central bank appointing four commercial banks, Vietcombank, Vietinbank, BIDV and Agribank, to provide preferential loans for developers and buyers of social housing projects, as well as the issuance of Circular 25/2015/TT-NHNN late last year on providing preferential loans for enforcing social housing development policies.

However, commercial joint stock banks have not started putting this into practice as they are still disbursing the remainder of the 30 trillion VND housing stimulus package, which was approved for a deadline extension until all the money is disbursed, Nam said.

Another source of capital for housing development for low-income earners will come from the Vietnam Bank for Social Policies, Nam said, adding that the construction ministry was co-operating with the bank to develop this loan package.

“Home-seekers should not be worried,” Nam said.

Pham Minh Tuan, Deputy Director of Hai Phat Invest, in charge of social housing project The Vestas, said capital for social housing development was very important, and he urged the Government to introduce timely measures in this regard.-VNA