The Prime Minister assigned the Ministry of Construction to research and propose plans to issue Government bonds and support interest rates for investment and social housing construction.
The information is stated in the official dispatch the Government Office just sent to the Ministry of Construction, conveying the Prime Minister's opinion on solutions to develop social housing.
The Government is implementing a project of 1 million social housing apartments for low-income people and industrial park workers by 2030. In the past three years, nearly 500 social housing projects have been deployed and supplied across the country. 411.250 apartments. But currently less than 10% of the units are completed, the rest have just started construction or are waiting for approval. Many businesses encounter difficulties when the procedures for social housing projects are more complicated than those for commercial housing.
Therefore, the Prime Minister requested the Ministry of Construction and agencies to study plans to issue Government bonds to support the development of this housing segment. This Ministry also needs to research more solutions on interest rate support, investment and social housing construction.
Government bonds - one of the popular financial instruments used by the Government to mobilize capital from investors. This is the first time the Government has mentioned this option for social housing development.
Previously, in the draft Decree on social housing development and management that was consulted by the Ministry of Construction at the end of February, this agency proposed a plan to issue Government bonds when developing this segment. This is to have resources for preferential loans for social housing development through the Bank for Social Policies.
A social housing area in Thu Dau Mot City (Binh Duong province), July 7. Image: Quynh Tran
According to a report by the Ministry of Construction, localities develop social housing unevenly. For example, in Hanoi and Ho Chi Minh City, the number of apartments only meets less than 20% of demand. Many places have not had projects started in the past 3 years, such as Vinh Phuc, Ninh Binh, Nam Dinh, Quang Ngai.
Experts have recommended that the Government prioritize allocating budget and resources to promote the development of the social housing segment. Currently, the Ministries of Planning & Investment, Finance and the State Bank are assigned to review and report to the Prime Minister on plans to supplement budget capital to lend to this sector through the Bank for Social Policies until 2025.
At the conference on March 16, Prime Minister Pham Minh Chinh also assigned the Ministry of Finance to research the establishment of a Social Housing Development Fund. In addition to the VND 3 billion credit package, the State Bank directed banks to research credit packages for social home buyers, with loan terms of 120.000-10 years, preferential interest rates 15-3% lower than normal. commercial loan. When implemented, these solutions are expected to help low-income workers and industrial park workers have the opportunity to buy houses.
Phuong Dung
