The 120 trillion VND credit package: The important thing is that it targets the right objectives, there's no need to rush or act too quickly.

ANTD.VN - The 120,000 billion VND social housing credit package has so far disbursed approximately 640 billion VND. Legal obstacles are causing a scarcity of social housing supply, resulting in slow lending.

640 billion VND has been disbursed.

According to a report by the State Bank of Vietnam, to date, only 28 out of 63 provincial People's Committees have submitted documents or published on their electronic portals the list of projects participating in the 120,000 billion VND Program, totaling 68 projects.

Among them, several provinces have announced many projects, including: Hanoi (6 projects), Ho Chi Minh City (6 projects), Bac Ninh (6 projects), Binh Dinh (5 projects)...

Of the 68 projects across 28 provinces and cities, 30 projects require loans. The remaining projects do not require loans because they have been completed or have secured other funding sources.

Of the 30 projects requiring loans, commercial banks have committed to providing credit to 15 projects with an amount of approximately VND 7,000 billion; of which, 10 projects require disbursement, including: 7 projects providing credit to the investor, 2 projects providing credit to homebuyers, and 1 project providing credit to both the investor and homebuyers.

The committed credit amount for 8 project developers is VND 1,965 billion, of which VND 640 billion has been disbursed; the committed credit amount for homebuyers in 3 projects is VND 7 billion, of which VND 6 billion has been disbursed.

Việc triển khai các dự án nhà ở xã hội còn nhiều vướng mắc

The implementation of social housing projects still faces many obstacles.

According to real estate businesses, the disbursement of the 120 trillion VND credit package is slow due to several reasons, such as a lack of clean land, legal obstacles in the implementation of social housing projects, and lengthy bank loan procedures. Furthermore, some businesses believe that the interest rates on the 120 trillion VND package are still high (not significantly lower than normal market interest rates).

Mr. Vuong Quoc Toan, Chairman of the Board of Directors of Lan Hung Group, suggested that banks could increase lending interest rates for businesses that are project investors to 9-9.5% per year, but reduce lending interest rates for individuals to 6% per year to support homebuyers. According to him, the current lending interest rates of the 120,000 billion VND package are still high compared to the income and repayment capacity of those buying social housing; furthermore, the lending procedures are still complicated and need to be simplified.

The important thing is to lend to the right target and the right people.

From the banks' perspective, the lack of social housing projects also means they are desperately searching for borrowers but can't find any.

According to Mr. Le Ngoc Lam, General Director of BIDV , BIDV's credit growth has been negative by more than 1% since the beginning of the year. Regarding the 120,000 billion VND package, BIDV has approached 8 projects, approved 4 projects with a total outstanding loan balance of nearly 1,000 billion VND, but has only disbursed over 96 billion VND so far. The reason is that businesses prefer to implement projects using their own capital first, rather than relying on bank loans.

Ms. Phung Thi Binh, Deputy General Director of Agribank, also stated that the bank has signed credit agreements with 8 social housing projects, committing to lend 2,500 billion VND and has disbursed 400 billion VND. Currently, the bank is approaching 5 new projects with a total loan amount of approximately 2,000 billion VND.

According to Ms. Binh, the reality is that many projects are facing legal obstacles, and the target group for social housing is too narrow, causing this credit package to be disbursed slowly.

Regarding businesses' proposals for further interest rate reductions, banks stated that the funds to maintain the current 120 trillion VND package come from the commercial banks themselves, not from government budget support. Given the uncertain trend in interest rates, extending the preferential interest rate period to five years would pose risks to the banks.

Therefore, leaders of many banks have suggested that the Government should soon study a mechanism to support interest rates or transfer the 2% interest rate support package (40,000 billion VND) to support social housing.

Although the disbursement of social housing loans has been slow, according to Deputy Governor of the State Bank of Vietnam, Dao Minh Tu, the banking sector's stance is to lend to the right targets and beneficiaries, focusing on social housing, housing for workers, and low-income earners.

"Because this support package aims to provide 1 million social housing units, spanning nearly 10 years, disbursement cannot be rushed. However, eligible projects must receive disbursement immediately," the Deputy Governor emphasized.

According to the Deputy Governor, to boost this credit package, a coordinated effort from the political system, ministries, and localities is needed to decisively accelerate the implementation of the project to build at least 1 million apartments, thereby creating housing projects for commercial banks to consider lending to.

According to Deputy Minister of Construction Nguyen Van Sinh, the Ministry of Construction is requesting reports from localities on the implementation of the 120,000 billion VND package; at the same time, the Ministry will discuss with the State Bank of Vietnam to review the difficulties encountered by investors and homebuyers during the loan process in order to jointly resolve them.

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