Illustrative image (Photo: tuoitre.vn) Hanoi (VNA) – As many as 531 billion VND (21.7million USD) under the 120 trillion VND credit package for social housing development has been disbursed, according to DirectorGeneral of the State Bank of Vietnam (SBV)’s Department of Credit for EconomicSectors Ha Thu Giang.
At a conference on credit growth on February 20, Giang said that in 2024, the SBV will continue to direct credit institutionsto drastically implement credit programmes and policies under the direction ofthe Government and Prime Minister, including the 120 trillion VND package, aswell as coordinate with ministries and agencies to remove obstacles during theimplementation process.
The development of social housing projects will open upopportunities to solve the mismatch between supply and demand and increaseliquidity, Vice Chairman of the Vietnam Real Estate Association Nguyen Van Dinhtold Lao Dong (Labour) newspaper.
He also pointed out three obstacles that hinder the work areland fund shortage, limited credit supply from the State Budget, and inconsistentconstruction procedures that prolong the implementation of these projects.
Dinh suggested that it is necessary to accelerate theplanning of social housing development areas to solve the problem relating toland fund shortage.
Regarding capital sources, suitable policies should beissued to support home buyers and ensure output for products.
As for procedures, Dinh noted that the revised Housing Law and the Law on Real Estate Business haveadded preferential policies for investors as well as simplified procedures andconditions to buy, rent social housing but the revised Land Law and Housing Lawwill take effect from January 1, 2025. Therefore, it is necessary to speed upthe promulgation of decrees approved by the Land Law and Housing Law so thatinvestors can easily conduct procedures and access land and capital, he said.
He also urged drastic instructions and banks' active involvement in facilitating access to the 120 trillion VND credit package.
The Ministry of Construction said 108 social housing projects withover 47,500 apartments are expected to be completed in 2024.
Accordingly, the southern province of Binh Duong registeredthe biggest number of projects to be completed this year with 20 projects and 4,500 apartments. Thenorthern province of Bac Ninh registered the biggest number of apartments to becompleted with 6,000 in five projects. Ho Chi Minh City registered six projects with more than 3,700 apartments and Hai Phong city, eight projectswith 3,925 apartments.
The 120 trillion VND support package was first implementedin April last year which aimed to provide loans with rates 1.5 -2% lower than the mediumand long-term lending rates in the market to developers of social housingprojects and home buyers, following the Government’s Resolution No 33/NQ-CPdated March 11 regarding solutions to remove difficulties and promote the safe,healthy and sustainable development of the real estate market.
Four State-owned commercial banks will join in thedisbursement of the package which will run until 2030.
Vietnam targets to build at least 1 million social housingapartments by 2030.
In 2023, a total of 28 housing projects with 13,864apartments for low-income earners and workers at industrial parks werecompleted, while 16 other projects were kicked off./.
