The Bank for Investment and Development of Vietnam (BIDV) will loan 30 trillion VND, with a preferential interest rate, for social housing projects in the 2013-2015 period to ease difficulties in Vietnam’s property market.

The Ministry of Construction and BIDV signed an agreement in Hanoi on December 14.

Construction Minister Trinh Dinh Dung affirmed that both the Vietnamese Government and National Assembly made a request to the ministry to help unfreeze the property market.

Property now accounts for more than 50 percent of total credit debt, affecting macro-economic growth and the lives of people. Resolving difficulties in the market will stabilise the macro economy and help low-income earners afford new homes.

The ministry is concretising a National Strategy on housing development with specific decrees on resettlement and social housing, and housing for people that have rendered service to the country.

It has also collaborated with the Ministry of Finance to introduce a fiscal policy to solve property market challenges.-VNA