More banks join social housing loan package

According to the latest information from the State Bank of Vietnam , another bank has just registered to participate in the 120,000 billion VND credit program for social housing loans, bringing the total registered amount to 145,000 billion VND.

Social housing project in Bank Hill Residential Area (Ha Long city, Quang Ninh province) with credit provided by Agribank .

Specifically, the latest bank to join this credit program is HDBank. Thus, up to now, there have been 9 banks participating in the social housing credit loan package, including the Big 4 banking group (Agribank, Vietcombank, BIDV , VietinBank), each bank participating 30,000 billion VND; the remaining 5 joint stock commercial banks each participating 5,000 billion VND are MB, VPBank, Techcombank, TPBank and HDBank.

According to the State Bank of Vietnam's report recently sent to the National Assembly, although the total scale of the social housing credit package is quite large, the disbursement has been very limited so far. Currently, only 35/63 provincial and municipal People's Committees have sent documents to the State Bank of Vietnam and the Ministry of Construction or publicly announced on the Electronic Information Portal with 84 projects. Commercial banks have disbursed VND 1,629 billion, including VND 1,511 billion to investors in 14 projects and VND 118 billion to home buyers in 11 projects.

The State Bank of Vietnam also said that, in addition to limited supply, the reason for the slow disbursement of credit packages is that some projects are facing legal problems; the majority of people in the area are in rural areas, have low incomes or are workers in industrial parks who do not have long-term housing needs, so they do not have the need to buy social housing, only the need to rent social housing,...

Therefore, to promote the development of social housing in the coming time, the Ministry of Construction has requested localities to urgently establish, amend and supplement programs and plans. housing development of localities, clarifying the goals of social housing for low-income people, industrial park workers, and people's armed forces.

The Ministry of Construction also requested the Provincial People's Committees to continue reviewing and checking legal procedures, making a list of projects to build social housing, housing for workers; renovating and rebuilding apartments that are eligible for loans from the program to publicly announce on the electronic information portal so that banks have a basis to apply for loans under the program and send documents to the State Bank of Vietnam and the Ministry of Construction for monitoring and synthesis.

On the side of the State Bank of Vietnam, this agency said that it will continue to monitor and urge credit institutions to vigorously implement credit programs for lending to develop social housing, workers' housing, and renovate and rebuild old apartment buildings, etc.

In addition, recognizing the above difficulties, the State Bank of Vietnam reported and received approval from the Government to propose adjusting the content of the 120 trillion VND Program in the direction of increasing the reduction of lending interest rates for home buyers from 2% to 3%/year in the first 5 years, and 1-2%/year lower in the next 5 years compared to the average medium and long-term lending interest rates in VND of 4 State-owned commercial banks.

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