Currently, 14/63 Departments of Construction nationwide have reviewed documents, compiled a list of eligible projects and submitted them to the Provincial People's Committee for consideration, and announced a list of 39 projects with a total investment of VND 43,406.28 billion; of which the loan demand is VND 17,869.48 billion.

Along with that, 9 provincial People's Committees have announced a list of 17 projects eligible for loans under the 120 trillion VND credit program. These projects have a total investment capital of 16,839.1 billion VND; of which, the loan demand is 8,920.45 billion VND.

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Specifically, the number of projects in these localities includes: Binh Duong 4 projects, Da Nang 3; An Giang, Kien Giang, Tra Vinh each have 2 projects; the remaining provinces are Tay Ninh, Ha Tinh, Ba Ria - Vung Tau, Bac Giang each have 1 project.

Mr. Hoang Hai, Director of the Department of Housing and Real Estate Market Management (Ministry of Construction) said that up to now, approved projects will disburse about 7.4% of the capital in the credit package of 120 trillion VND. If the provincial People's Committees continue to approve the list submitted by the Department of Construction, there will be an additional 9 trillion VND - approximately 7.4% of this credit package to be disbursed.

Since the beginning of April, the VND 120 trillion credit program has been implemented in accordance with Resolution 33/NQ-CP dated March 11, 2023 on a number of solutions to remove obstacles and promote the safe, healthy and sustainable development of the real estate market.

This credit package was implemented to support lending to investors and home buyers of social housing and worker housing projects at interest rates 1.5 - 2% lower than the market interest rates for medium and long-term loans. However, by the end of May, this capital flow had not yet been disbursed. The Ministry of Construction has also requested 22 key localities to report on loan needs and difficulties and obstacles in implementing the preferential loan package.

Accordingly, the problem in disbursing the 120 trillion VND credit package is reflected as there are no projects to lend. Therefore, the Ministry of Construction has also reviewed and contacted directly with localities and investors to find out the cause.

The Ministry of Construction said that although 108 projects have been announced, localities are still in the process of synthesizing and announcing them. Along with that, most of the remaining projects are still in the process of implementing investment procedures. Up to now, the Ministry of Construction has not received any feedback from investors about difficulties related to loan procedures and documents - Mr. Hoang Hai informed.

Statistics from the Ministry of Construction show that in the first two quarters of 2023, 9 social housing and worker housing projects were started nationwide with a scale of nearly 18,800 units; of which, there were 6 social housing projects with a scale of more than 7,700 units and 3 worker housing projects with about 11,000 units.

The State Bank confirmed that local authorities that have licensed social housing projects have been prepared to lend by credit institutions. So far, some banks such as the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) and the Bank for Agriculture and Development of Vietnam (Agribank) have begun lending in the VND120 trillion credit package.

Among them, BIDV is the first bank to sign a credit contract to finance a social housing project under the VND120 trillion program. Specifically, BIDV will finance VND99 billion for the low-rise social housing project at lot N02 (in Minh Phuong Housing and Commercial Services Area, Viet Tri City, Phu Tho), including VND95 billion in credit and VND4 billion in guarantees for the sale and lease-purchase of future housing.

News and photos: VNA

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