Why is the 120,000 billion VND social housing package "unsold"?

After nearly 1 year of implementing the 120,000 billion VND credit package for social housing loans, only over 500 billion VND, or less than 1%, has been disbursed for only 7 projects.

To date, only 28 localities have announced a list of 68 projects eligible for loans under the program. When issued, the VND120,000 billion credit package is expected to contribute to realizing the goal of 1 million social housing units. The Ministry of Construction has sent documents to the People's Committees of provinces and centrally run cities reporting on the implementation status and clarifying the reasons for such a low disbursement rate.

The VND120,000 billion credit package for social housing development is a program in which four state-owned commercial banks voluntarily mobilize capital and the interest rate is reduced by 1.5 - 2% compared to the market. The State Bank has also adjusted the interest rate twice, for businesses it is 8% and for home buyers it is 7.5%/year. However, according to experts, this interest rate is not really attractive to investors.

The 120,000 billion VND credit package is expected to contribute to realizing the goal of 1 million social housing units.

Mr. Nguyen Duy Thanh - General Director of Global Housing Management Company said: "Five years later, after they have successfully borrowed and received the house, floating interest rates or a rather vague source of interest rates will create difficulties for buyers."

In addition, this credit package is for low-risk borrowers and real housing projects. Meanwhile, many businesses with large real estate inventories are also under pressure with current loans, not to mention jumping into debt groups. In addition, profits from social housing projects are limited to only 10%, and legal procedures are still complicated.

According to experts, banks need to recalculate appropriate interest rates and the State should support low-cost housing rentals rather than selling low-cost housing.

"Instead of using interest rate support funds, we can use that cost to support housing rentals and rent payments for low-income people, which will provide more direct support to those in higher need," said Dr. Pham Anh Khoi, a financial expert.

In the coming time, experts also believe that it is necessary to put products on the stock exchange and raise capital from the public.

According to PV/VTV.VN

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