Ministry of Construction proposes to lower interest rates for loans of 120,000 billion package

Speaking at the Q2/2024 press conference, Mr. Hoang Hai, Director of the Department of Housing and Real Estate Market Management ( Ministry of Construction ), said that the supply and new social housing projects started construction have increased compared to previous years.

Mr. Hoang Hai, Director of the Department of Housing and Real Estate Market Management (Ministry of Construction)

According to reports from localities, 503 social housing projects have been implemented nationwide, comprising 418,200 units (an increase of 4 projects and 6,950 units compared to the report dated March 15).

Of these, 75 projects with a scale of 39,884 units have been completed, 128 projects with a scale of 115,379 units have started construction and 300 projects with a scale of 262,937 units have been approved for investment.

However, the implementation still faces some difficulties and obstacles regarding land availability, funding, and investment procedures for social housing projects.

To ensure the completion of the target of 1 million social housing units, in addition to the four state-owned joint-stock banks, the Ministry of Construction has requested the State Bank of Vietnam to direct and encourage more commercial banks to participate in the 120,000 billion VND support loan program and to open credit limits to facilitate the banks' implementation.

In particular, continue to research and consider lowering the lending interest rate for the 120,000 billion VND support capital source in accordance with the practical situation.

Localities urgently establish, amend, and supplement housing development programs and plans, clarifying social housing goals for low-income people, industrial park workers, and the people's armed forces.

Plan and arrange independent social housing projects in suitable and convenient locations, with appropriate scale, ensuring social welfare, and providing complete technical and social infrastructure.

Urge and require investors of commercial housing projects and urban areas to implement the construction of social housing on the 20% land allocation of these projects according to the approved schedule. If the investor fails to do so, reclaim the 20% land allocation and select other investors to carry out the project.

In addition, there are specific mechanisms and solutions to streamline administrative procedures related to project planning and approval, land allocation, land leasing, site clearance, and construction investment procedures, etc., to support and encourage businesses to implement construction projects.

For investors, after commencing a social housing project, it is necessary to quickly provide and publicly disclose all relevant project information so that people can register to buy, rent-to-own, or rent. Construction should be expedited, ensuring the timely completion of projects on the 20% of land allocated for social housing.

Proactively review subjects and conditions, register with the People's Committees of provinces and centrally-run cities to be announced in the list of preferential loans from the 120,000 billion VND support package.

Source: https://thanhnien.vn/bo-xay-dung-kien-nghi-ha-lai-suat-cho-vay-goi-120000-ti-185240614174900364.htm