Bank boss gives advice to speed up disbursement of 145,000 billion VND package

(NB&CL) The General Director of Agribank said that in order for the 1 million apartment project to be effectively implemented, localities need to urgently complete the establishment, revision and supplementation of housing development programs and plans, and publicize and introduce social housing investment land funds to businesses for research and investment proposals.

Banks join credit packages dedicated to social housing

In early 2023, the Government announced a VND120,000 billion credit package to implement the Project of at least 1 million social housing apartments in the period of 2021 - 2030. The credit package is deployed through 4 banks in the "Big 4" group, including: VCB, Vietinbank, BIDV and Agribank.

By the end of 2024, 5 more commercial banks will join this credit package, including: TPBank, VPBank, Techcombank, MBBank and HDBank . Each bank will contribute an additional 5,000 billion VND. Thus, the initial 120,000 billion VND package will be increased to 145,000 billion VND.

Although there are preferential mechanisms and policies from the Government and the support of many banks, the disbursement progress of this credit package is still "slow as a turtle", by the end of 2024 the disbursement rate is less than 1%.

Many domestic banks have expressed their desire to participate in programs to develop a safe and sustainable real estate market. Photo: TL.

The reason is that businesses investing in social housing construction face difficulties in accessing land such as land fund planning and project publicity to attract investment.

Besides, some projects have approved investment policies and selected investors, but construction implementation is still slow, and some businesses still have difficulties in capital sources.

It is known that the State Bank is submitting to the Government a new policy mechanism with a credit package of 145,000 billion VND. If the changes are groundbreaking and resolve existing problems, the credit package of 145,000 billion VND will have a huge impact on the real estate market, creating a fund of low-cost, affordable housing, helping social security, and at the same time rebalancing the real estate market which is currently "out of phase" as it is.

Bank leaders give advice

With the current situation, the banks participating in the credit package themselves all want major changes in mechanisms and policies and to remove existing obstacles to speed up the disbursement of the 145,000 billion VND credit package.

Mr. Do Minh Phu, Chairman of Tien Phong Commercial Joint Stock Bank (TPBank), said: The banking industry pays special attention to areas of sustainable economic development, one of which is social housing. TPBank alone has participated in the VND 145,000 billion lending program since July 2024.

TPBank Chairman revealed: With the goal of creating conditions for low-income people to access housing, the bank has committed to providing 5,000 billion VND in funding, of which nearly 800 billion VND has been disbursed in the first phase.

However, TPBank Chairman said that although it has actively participated in social housing development programs, the actual implementation still faces many obstacles, especially in terms of legal procedures and counterpart funds.

Therefore, the Chairman of TPBank hopes that the Government will have better support policies, such as simplifying licensing procedures and increasing land funds for social housing. This will not only help people easily access housing but also promote credit development in the right direction.

In addition, Mr. Do Minh Phu emphasized that in order for these programs to be more effective, the bank hopes to have support from the Government and the State Bank in adjusting the public capital ratio, especially improving the legal mechanism for social housing.

Meanwhile, Mr. Pham Toan Vuong, General Director of Agribank, said that Agribank has approved 13 social housing projects with a total approved amount of 3,350 billion VND and is approaching 5 projects with an expected credit amount of 2,500 billion VND.

However, Mr. Vuong said that in order for the 1 million apartment project to be effectively implemented, localities need to urgently complete the establishment, revision and supplementation of housing development programs and plans, and publicize and introduce social housing investment land funds to businesses for research and investment proposals.

In addition, the General Director of Agribank said that it is necessary to balance the local budget to encourage and provide additional incentives to call on economic sectors to participate in investing in developing social housing in the locality.

Ngoc Tu

Source: https://www.congluan.vn/sep-ngan-hang-hien-ke-de-day-nhanh-toc-do-giai-ngan-goi-145000-ty-dong-post335240.html