Real estate debt accounts for 21.46%

On the morning of November 13, the State Bank of Vietnam and the Ministry of Construction held a conference to implement Official Dispatch No. 993/CD-TTg dated October 24, 2023 of the Prime Minister.

According to the State Bank of Vietnam (SBV), outstanding credit for the real estate sector as of September 30 reached VND 2.74 million billion, an increase of 6.04% compared to December 31, 2022, accounting for 21.46% of total outstanding credit for the economy.

Ms. Ha Thu Giang, Director of the Department of Credit for Economic Sectors, said that the State Bank always closely monitors developments in the real estate and credit markets to have solutions that both ensure the safety of the banking system and contribute to promoting economic growth and ensuring the healthy and sustainable development of the real estate market.

In document 2931/NHNN-TD dated April 24, the State Bank of Vietnam directed credit institutions to create favorable conditions for real estate project investors and home buyers to access credit when fully meeting the credit granting conditions as prescribed. Focusing credit capital on real estate projects that meet legal conditions, have the ability to consume products, have the ability to repay loans fully and on time, meeting the real needs of the people, especially social housing projects, worker housing, housing suitable for people's income and types of real estate serving the purpose of production, business, social security with high efficiency, and the ability to repay debts.

Consider granting credit to investors, construction contractors, home buyers and manufacturing units providing construction materials and supplies to increase capital circulation and liquidity for the real estate market. Actively and strictly control cash flow, loan purposes, and collect debts in full and on time. Promote lending to home buyers and debt collection from home sellers in the same project.

In addition, the State Bank has directed and guided the implementation of credit programs worth VND120,000 billion for investors and buyers of social housing, worker housing, and apartment renovation and reconstruction projects to borrow at interest rates 1.5% to 2% lower than the average lending interest rates of four state-owned commercial banks.

Governor of the State Bank of Vietnam Nguyen Thi Hong speaks at the conference

Many opinions at the conference said that it is necessary to implement comprehensive solutions with the coordination of many ministries, branches and localities to continue to handle and resolve legal procedural problems in the real estate sector; develop the medium- and long-term capital market; and continue to carry out tasks assigned by the Prime Minister in documents such as Resolution 33/NQ-CP and Official Dispatch No. 993/CD-TTg.

Regarding the banking sector, in the coming time, the State Bank of Vietnam said it is urgently reviewing and evaluating the implementation of Circular 03 and Circular 06 to promptly issue amendments and supplements in accordance with market realities, increase access to credit capital for the economy, and ensure system safety in accordance with the direction of the Prime Minister.

Continue to direct credit institutions to implement solutions to improve access to capital for businesses and people; continue to implement the policy of restructuring debt repayment terms and maintaining debt groups to support customers facing difficulties according to Circular 02/2023/TT-NHNN.

Monitor and closely follow the implementation of the 120,000 billion VND Program to coordinate with the Ministry of Construction to review and propose solutions to promote the implementation of the Program, contributing to promoting investment, construction as well as purchase of social housing by people.

Continue to coordinate with ministries and branches to complete legal regulations to support the sustainable development of the real estate market while controlling risks and ensuring the safe operation of credit institutions.

Regarding social housing loans under Decree 100/2015/ND-CP being implemented at the Vietnam Bank for Social Policies, the total maximum loan capital under Resolution 43 and Resolution 11 is 15,000 billion VND.

As of September 30, the VBSP had only disbursed 55% of the plan due to the limited supply of social housing in localities; many people in need but after review did not meet the conditions for borrowing social policy credit; investors when selling to home buyers had not released mortgages, so they could not register secured transactions...

Therefore, on November 2, the Government issued Resolution No. 181/NQ-CP adjusting the capital plan expected to not be fully disbursed from 4 preferential loan programs, including this Program, to supplement loans for job creation.

For the 120,000 billion VND Program, the biggest difficulty is the limited supply. Up to now, only 23 provincial and municipal People's Committees have announced a list of projects eligible to participate in the Program.

According to the report of the State Bank branches in provinces and cities, after reviewing the projects in the list, among the 54 announced projects, there are: 5 projects that have been approved for credit; 30 projects (55.5%) are not in need of loans; 11 projects (20.4%) are not eligible for loans, of which 06 projects are still facing legal problems; 8 projects (15%) are being appraised by commercial banks. Therefore, the implementation of the Program has not been as expected.

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