Only 120 individual clients in Ho Chi Minh City had been eligible to borrow capital from the Government's 30 trillion VND (1.4 billion USD) preferential credit package as of September 15.

The capital had been disbursed to 45 of them, totalling 15.67 billion VND (750,000 USD), the municipal People's Committee said, adding that there were no businesses in the city who could access this preferential package.

The 30 trillion VND bailout to low-income homebuyers and corporate customers developing social housing projects is planned to help shore up the real estate sector, with the focus on social housing, the market segment with very high demand and low supply.

It will offer property developers loans with low interest rates, hovering around 6 percent per year. Besides, credit loans will be also provided for low-income earners who rent or buy houses.

However, too many obstacles, including the current difficult economic climate, the frozen real estate market and barriers in fulfilling all the required documents, have made the bailout impossible for many individual clients and property developers to access the bailout money. This has resulted in its sluggish disbursement, the committee said.

In order to deal with the problem, the city had suggested that the Government, the Ministry of Construction and the State Bank of Vietnam consider providing preferential loans from the package for people who want to build first-time houses with an area not larger than 70sq.m.

In addition to petitioning for VAT and corporate income tax exemptions for businesses which could develop affordable housing projects or shifting their commercial ones to social housing, the city has also called for VAT reduction for people who are first-time house buyers. Perfecting the legal framework to better facilitate loan access will also be included.-VNA