Only 1% of the 120 trillion VND credit package has been disbursed so far.

According to documents prepared for the Ministry of Construction 's mid-year review conference in 2024, there are currently 8 completed social housing projects nationwide. From 2021 to the present, 503 projects have been implemented across the country, comprising 418,200 units.

This includes 75 completed projects with 39,884 units; 128 projects with 115,379 units under construction; and 300 projects with 262,937 units that received investment approval.

According to the investment plan to build at least one million social housing units, the target for the 2021-2025 period is to complete approximately 428,000 units. This year alone, the government aims to complete the construction of around 130,000 units, but the Ministry of Construction projects that it will be difficult to achieve this target in 2024.

The Ministry of Construction assesses that the implementation of the 120,000 billion VND loan package is still very slow. Only 1% of this package has been disbursed, or approximately 1,234 billion VND ( Agribank disbursed 531 billion VND, Vietinbank 306 billion VND, BIDV 134 billion VND, Vietcombank 2 billion VND, and TPBank 170 billion VND).

Of this amount, 1.202 billion VND was allocated to developers in 12 projects, meaning only about 32 billion VND has been disbursed to homebuyers so far.

Currently, in addition to the four state-owned commercial banks (BIDV, Vietinbank, Agribank, Vietcombank), Tien Phong Bank (TPBank) and VPBank have also registered to participate in the program, each contributing 5,000 billion VND.

Ministry of Construction: Only 1% of the 120,000 billion VND credit package has been disbursed.

Furthermore, only 32 out of 63 provinces and cities nationwide have announced the list of projects in need of loans, totaling 73 projects, concentrated in Hanoi, Ho Chi Minh City, Bac Ninh, Binh Dinh, etc. The Ministry pointed out that the reason is that the interest rates on these preferential loan packages are still high, while the loan term is short, thus failing to attract businesses and individuals to borrow capital.

In the last six months of the year, the Ministry of Construction stated that its main task is to urge localities to implement investment projects to build at least one million social housing units, while also finding solutions to overcome difficulties and increase the supply of housing for low- and middle-income earners in order to "rebalance supply and demand".

Previously, the Ministry had proposed that the State Bank of Vietnam study a new preferential loan package for social housing buyers with interest rates 3-5% lower than commercial loan rates, and loan terms of 10-15 years. This proposed interest rate is more flexible than the current preferential credit package (1.5-3% lower than commercial loan rates).

Source: https://www.nguoiduatin.vn/bo-xay-dung-moi-giai-ngan-1-goi-tin-dung-120000-ty-dong-204240711100932064.htm