Disbursement of 120,000 billion VND credit package is still slow

On the morning of February 22, the Ministry of Construction held a national online conference to deploy the Project "Investing in the construction of at least 1 million social housing apartments for low-income people and industrial park workers in the period 2021-2030" in 2024.

Speaking at the Conference, Minister of Construction Nguyen Thanh Nghi emphasized that developing social housing and housing for workers is both one of the pillars of social security policies and an effective solution to promote socio-economic development, contributing to creating supply, restructuring the real estate market, and balancing the structure of real estate products, especially the social housing segment and affordable housing for low- and middle-income people as at present.

By 2025, the project to build 1 million social housing units will be basically completed.

Accordingly, Mr. Nghi said that with the close and drastic direction of the Government and the Prime Minister, the proactive and responsible participation of the Central Ministries and especially the localities, the results of the implementation of the Project "Investing in the construction of at least 1 million social housing apartments for low-income people and industrial park workers in the period of 2021-2030" have so far achieved important milestones.

Firstly, regarding policy development, in 2023, the Government submitted and the National Assembly approved Housing Law No. 27, the amended Land Law, along with many related legal documents with many new contents, removing many difficulties and obstacles in practice; especially removing existing problems and obstacles to promote social housing and housing for workers.

“These new policies, together with the National Housing Development Strategy and the Programs to support the construction and renovation of new housing for policy beneficiaries according to the Prime Minister's decisions, will certainly create a more complete legal corridor, ensuring support and encouragement for businesses to participate in the development of social housing and workers' housing,” the Minister affirmed.

Real Estate - Minister of Construction: Disbursement of 120,000 billion VND credit package is still slow — Minister of Construction Nguyen Thanh Nghi spoke at the Conference.

Second, regarding the actual development of social housing and housing for workers, the Minister of Construction informed that in the period from 2021 to present, nationwide, 499 social housing projects have been implemented with a scale of more than 411,000 apartments (of which 71 projects have been completed with a scale of nearly 40,0000 apartments; 127 projects have started construction with a scale of nearly 108,000 apartments; 301 projects have been approved for investment policy with a scale of 265,500 apartments).

Third, the implementation of the preferential credit package of 120,000 billion VND has been completed. 28 provinces have announced a list of 68 projects eligible for loans under the 120,000 billion VND credit program with a loan demand of more than 30,000 billion VND. Up to now, 6 social housing projects in 5 localities have been disbursed with a capital of about 415 billion VND.

According to the Project “Investing in the construction of at least 1 million social housing units”, the total number of apartments completed by localities by 2030 is expected to be about 1,062,200 units. Of which, about 428,000 units will be completed in the 2021-2025 period.

Thus, the Minister of Construction believes that if the projects that have been licensed and approved for investment are completed on time, we will basically complete the Project's goals by 2025.

Social housing construction enterprises still have difficulty accessing land

However, in addition to the achieved results, Minister Nguyen Thanh Nghi also expressed the need to frankly acknowledge that the implementation of the Project still faces many difficulties, and there are still limitations and problems that need to be focused on and resolutely resolved in the coming time.

Firstly, there are still many localities whose implementation results are slower than the plan registered in the Project, in which, there are some localities that have not yet started any new social housing projects.

Besides, the disbursement of the preferential credit package of 120,000 billion VND is still slow compared to the wishes and practical needs of enterprises investing in social housing and housing for workers.

Along with that, there are still problems and difficulties for businesses investing in social housing and housing for workers in accessing land, investment and construction procedures, credit, preferential policies, etc.

Real estate - Minister of Construction: Disbursement of 120,000 billion VND credit package is still slow (Figure 2). — Overview of the National Online Conference to implement the Project "Investing in the construction of at least 1 million social housing apartments for low-income people and industrial park workers in the period 2021-2030" in 2024.

Faced with the above difficulties, Minister of Construction Nguyen Thanh Nghi shared that in the coming time, ministries, branches and localities need to closely follow and more seriously and drastically implement the tasks set out in the Project, especially reviewing planning, land allocation, reforming administrative procedures... for social housing projects.

In particular, it is necessary to review the implementation of the 120,000 billion preferential credit package to find solutions to remove obstacles and promote access and disbursement of this credit package .

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