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| Le Thanh An Lac social housing area (Binh Tan district, Ho Chi Minh City). |
Credit is going to low-cost housing
Speaking at the workshop “Effective financial leverage - Housing opportunities for young people” on the morning of June 26, Ms. Ha Thu Giang, Director of the Department of Credit for Economic Sectors (State Bank of Vietnam) said that the banking industry is implementing many solutions to prioritize credit capital and synchronously implement solutions to help young people have housing.
“Credit flows are directed to the low-cost housing segment,” said Ms. Giang.
With the social housing credit package of VND145,000 billion with 9 participating banks, Ms. Giang said that the current lending interest rate is 5.9%/year, 1.5-2% lower than the normal lending interest rate. For young people under 35 years old, the State Bank of Vietnam (SBV) has implemented a preferential interest rate policy, 2% lower for the first 5 years, 1% lower for 10 years than the average medium and long-term interest rate of the large bank group.
Although the results are more positive than before, the amount of capital disbursed from the above programs is still not much. According to the State Bank, the reason is that the market has few projects with prices suitable for the payment ability of these subjects.
Young people crave long-term preferential credit packages
Mr. Ha Quang Hung, Deputy Director of the Department of Housing and Real Estate Market Management ( Ministry of Construction ) said that recent real estate market surveys show that young people (around 22-40 years old) are becoming the main customer group in the housing market, gradually replacing the middle-aged group.
“The demand for home ownership among young people in Vietnam is at an unprecedented high, both in terms of quantity and proportion in the structure of home buyers. However, the increase in people's income has not kept up with the increase in housing prices, leading to the actual ability of most young people to own a house is still very limited. To buy an average house (70m2, selling price 3-4 billion VND) in big cities, young people need 20-25 years of income. This figure shows that the house price/income ratio in Vietnam is very high (very difficult to access)”, said Mr. Hung.
In reality, most young urban couples with an average income of 20-30 million VND/month have to rent a house or live with their family. Very few people have enough savings to buy a commercial house when they reach the age of 30 without financial support from their family or preferential credit programs.
Analyzing the barriers, Mr. Hung said that real estate supply is still limited and prices are high compared to the affordability of the majority of people, including young people.
According to the representative of the Ministry of Construction, young people find it difficult to have a house due to personal financial barriers, as well as credit barriers. Although banks are willing to lend money to buy houses, commercial loan interest rates are still quite high, and loan terms are not long enough compared to demand. Only when there are preferential packages of low interest rates (5-6%) fixed for a long period (20-30 years) will young people boldly consider borrowing to buy a house.
To solve the current supply-demand problem, Mr. Ha Quang Hung said that the first solution is to increase the housing supply. To do so, it is necessary to review and perfect the institutions and laws related to housing and the real estate market, ensuring consistency, synchronization and feasibility.
In addition, it is necessary to effectively implement Decree No. 75/2025/ND-CP, a Government decree detailing the implementation of Resolution No. 171/2024/QH15 on piloting the implementation of commercial housing projects through agreements on receiving land use rights or having land use rights.
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| Mr. Ha Quang Hung, Deputy Director of the Department of Housing and Real Estate Market Management (Ministry of Construction). |
Regarding social housing, Mr. Hung noted that the National Assembly has passed Resolution No. 201/2025/QH15 on piloting a number of specific mechanisms and policies for social housing development, effective from June 1, 2025, adjusting policies in a more flexible and accessible direction.
According to him, localities need to implement and complete social housing development targets according to Decision No. 444/QD-TTg dated February 27, 2025 of the Prime Minister and develop workers' accommodation in industrial parks and housing for armed forces.
Another important solution that Mr. Hung emphasized is developing long-term rental and hire-purchase models.
Regarding finance, Mr. Ha Quang Hung said that we should increase the family deduction for calculating personal income tax, allow a portion of the interest on first-time home loans to be deducted from taxable income... to encourage young people to buy houses.
In addition, research a housing savings fund model that allows workers to deduct a portion of their monthly salary into the fund to get a home loan at a preferential interest rate, or to reward money into a housing savings account for young people who reach a certain savings milestone.
Finally, it is necessary to improve access to credit and implement long-term preferential loan packages. It is necessary to arrange sufficient and timely preferential loan capital from the central budget to the Vietnam Bank for Social Policies to provide preferential loans for purchasing and leasing social housing; speed up the disbursement of the VND 145,000 billion credit program, consider extending the loan term and preferential loan period.
Source: https://baodautu.vn/mat-20-25-nam-thu-nhap-moi-mua-duoc-nha-nguoi-tre-khat-goi-tin-dung-uu-dai-dai-han-d314574.html
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