Disbursement of 120,000 billion VND package for social housing loans is still slow

According to the Standing Deputy Governor of the State Bank of Vietnam, Dao Minh Tu, in 2023, outstanding real estate credit will reach VND2,890 trillion, accounting for 23% of the total outstanding debt of the economy. In particular, credit has flowed into encouraged segments such as commercial housing and housing with real demand; limited to the resort segment; the social housing sector has received attention for disbursement.

Conference scene.

For the 120,000 billion VND social housing loan program, which is the capital source of commercial banks, banks should focus on disbursing the right target, the right subjects, towards social housing, housing for workers, and low-income people. Deputy Governor Dao Minh Tu affirmed that the support package serving the target of 1 million social housing units should last for several years, so there is no need to be too urgent, only qualified projects will be prioritized for quick disbursement.

Regarding the results of the implementation of the VND120,000 billion credit package, Deputy Director of the State Bank of Vietnam Credit Department Nguyen Xuan Bac said that so far, only 28/63 provincial People's Committees have sent documents or announced on the electronic information portal the list of participating projects, with 68 projects. Of which, some provinces have announced many projects, such as: Hanoi (6 projects), Ho Chi Minh City (6 projects), Bac Ninh (6 projects), Binh Dinh (5 projects)..., with 30 projects in need of loans.

Of these 30 projects, commercial banks have committed to providing credit for 15 projects, worth about VND7,000 billion. Specifically, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) has disbursed VND95.7 billion to 3 project investors in Phu Tho, Thanh Hoa and Binh Duong provinces; the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) has disbursed VND128.6 billion to 1 project investor in An Giang province; the Vietnam Bank for Agriculture and Rural Development (Agribank) has disbursed VND415.7 billion to 4 project investors in Bac Ninh, Quang Ninh and Kien Giang provinces and VND5.7 billion to home buyers in 2 projects.

According to the representative of the State Bank, the implementation of the credit package has some main difficulties and problems, which are the limited supply of social housing; credit institutions, through approaching and appraising projects, found that some projects still have problems with legal issues, site clearance, procedures for calculating land use fees, changing land use purposes, etc. Many projects are under construction or are in the stage of selecting contractors, have not started construction, and are clearing the site, so they are not eligible to open for sale.

To promote the implementation of this program, it is necessary to have the synchronous participation of the political system, ministries, branches and localities to create housing projects for commercial banks to consider lending. The State Bank will coordinate with the Ministry of Construction in developing and promulgating documents guiding the Housing Law; monitor the implementation of the Program to propose amendments to suit the reality.

In addition, the State Bank continues to closely follow the directions of the Government and the Prime Minister; continues to proactively, flexibly and synchronously manage monetary policy tools, direct credit institutions to reduce costs, lower interest rates, creating a basis for lowering lending interest rates; direct credit institutions to continue to expand communication, introduction and consultation activities to eligible customers so that customers have sufficient information and proactively access and borrow capital when needed.

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