Unblocking capital sources to support social housing purchases

After one year of implementing the 120,000 billion VND credit package for investors and homebuyers of social housing projects under Government Resolution No. 33/NQ-CP, the State Bank of Vietnam - Thanh Hoa Provincial Branch (SBV Thanh Hoa) has actively directed commercial banks to approach and understand the borrowing needs and guide investors and homebuyers in completing loan application documents and procedures according to regulations. However, to date, only one project in the province has received a loan under this program.

Unlocking funding to support the purchase of social housing. The social housing project in Quang Thang ward - Tan Thanh ECO3 residential area - received a loan from the 120,000 billion VND program of the Bank for Investment and Development of Vietnam, Lam Son branch.

To address and promote the safe, healthy, and sustainable development of the real estate market, on March 11, 2023, the Government issued Resolution No. 33/NQ-CP assigning the State Bank of Vietnam to implement a VND 120,000 billion credit package for investors and homebuyers of social housing projects, worker housing projects, and old apartment building renovation and reconstruction projects with preferential interest rates. Accordingly, eligible borrowers are legal entities and individuals investing in projects and purchasing housing in social housing projects, worker housing projects, and old apartment building renovation and reconstruction projects included in the list of projects published by the Ministry of Construction as stipulated. To be eligible for the loan, customers must meet the loan conditions as prescribed. Each homebuyer is only allowed to participate in the loan once to purchase one apartment in a project included in the list of projects published by the Ministry of Construction as stipulated.

In Thanh Hoa, the participating state-owned commercial bank branches include: Vietnam Investment and Development Bank, Vietnam Bank for Agriculture and Rural Development, Vietnam Industrial and Commercial Bank, and Vietnam Foreign Trade Bank. The disbursement period for the program extends until the total disbursement reaches VND 120,000 billion, but no later than December 31, 2030. The preferential interest rate period for investors is 3 years from the date of disbursement, but not exceeding the loan term in the initial loan agreement; for homebuyers, the preferential interest rate period is 5 years from the date of disbursement, but not exceeding the loan term in the initial loan agreement. During the preferential period, the interest rate is 1.5 to 2% lower than the average medium and long-term VND interest rate of state-owned commercial banks.

Unlocking funding to support the purchase of social housing. Agribank Nam Thanh Hoa is implementing a 120,000 billion VND loan package for investors and homebuyers of social housing projects in accordance with Government Resolution No. 33/NQ-CP.

Based on Resolution No. 33/NQ-CP and the directives of the State Bank of Vietnam, the State Bank of Vietnam in Thanh Hoa province has issued official letters requesting participating banks in the program to thoroughly understand and implement Resolution No. 33/NQ-CP among their staff, creating a unified understanding in the program's implementation. Simultaneously, they are to proactively allocate capital and prepare the necessary conditions for program implementation; and to strengthen the bank-enterprise connection program to support businesses in accessing credit...

To effectively implement the 120,000 billion VND credit package for investors and homebuyers of social housing projects under Government Resolution No. 33/NQ-CP, the State Bank of Vietnam (SBV) Thanh Hoa branch is focusing on directing banks and credit institutions in the area to take advantage of capital sources, proactively review and remove difficulties for real estate businesses and homebuyers to quickly access preferential credit; monitor lending by commercial banks participating in the program; and promptly report any arising problems to the SBV. In addition, the SBV Thanh Hoa branch continues to closely coordinate with the Department of Construction to keep track of social housing projects in the area approved by the Provincial People's Committee to direct commercial banks to access and lend according to regulations...

Article and photos: Luong Khanh

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