Construction Minister Trinh Dinh Dung has confirmed that the credit package worth 30 trillion VND designed to support social housing is being used appropriately and in line with Government Resolution No. 02.

Minister Dung told the media that easing difficulties for the property sector and developing social housing are closely related tasks.

He noted an important point in Resolution No 02 that the Government requires the combination of solving of difficulties faced by the property sector and the implementation of the national strategy on housing development, whose purpose is to provide housing for all people, especially the poor and people in difficulty aforementioned strategy.

It means that new homes must reach people and be affordable, the minister said, adding that the property market is currently oversupplied with high-end products, while reasonably-priced products are lacking. This imbalance should be solved promptly.

The minister said a number of developers have asked for permission to turn their commercial housing projects into social housing, which according to him is a good thing as it meets several targets at the same time. The property stock will reduce while more affordable products will become available to those in need.

According to Minister Dung, the 30 trillion VND package plus a land-use tax level of zero percent and a reduction in VAT are an economic stimulus package. Not only poor homebuyers will benefit from the support package, but all others will gain from the credit disbursement as it puts economic development back on track, he noted.

Regarding worries that businesses may become the key beneficiaries of the credit package, the minister said the more businesses that take part in building social housing, the better it is for the effort to provide housing for poor people. Businesses should be encouraged to join the effort, he stressed.

The quota for businesses is fixed, and will not exceed 30 percent of the package, he added.

Explaining why only a small number of people have accessed the credit package so far, Minister Dung said as this is medium-term credit, only when social housing projects are completed, can customers borrow money to buy. At present, there are just several commercial housing projects that meet criteria on price (below 15 million VND per square metre) and floor space (below 70 square metres). Therefore, the disbursement of the credit package cannot be done immediately, he added.

“The package aims to help eligible customers who are in need of housing. If we disburse credit carelessly, the target will not be reached. Besides, banks, which are responsible for the package, have to closely manage the credit.”

According to the minister, the 30-trillion VND credit package is the first of its kind aimed to implement the policy on social housing, so it draws due attention and care from the Party and State. The minister affirmed that the Ministry of Construction will try its best to ensure the help reaches the target group.-VNA