120,000 billion VND package for social housing loans to be implemented until 2030

Regarding the VND120,000 billion credit package, Governor of the State Bank of Vietnam Nguyen Thi Hong emphasized that this is a credit package in which four state-owned commercial banks voluntarily participate to achieve the target of 1 million apartments for workers and low-income people, implemented until 2030, not just resolved in 2022.

Capital is mobilized by 4 state-owned commercial banks, interest rates are reduced from 1.5 to 2% for investors and home buyers of social housing projects, worker housing projects, and projects to renovate and rebuild old apartments.

Governor of the State Bank of Vietnam Nguyen Thi Hong: The VND120,000 billion social housing loan package will be implemented until 2030. Photo: TUAN HUY

The State Bank only provides guidance on interest rates applicable during the preferential period for unified implementation. The Ministry of Construction has issued guidelines and authorized localities to announce the project list.

“The demand for social housing and workers’ housing is high, but the demand for loans is a problem because the decision to borrow to buy an apartment is up to the people. This issue will be implemented in the coming time. In particular, the Housing Law submitted to the National Assembly this session allows businesses to buy houses to arrange housing for workers. This is a positive point for these packages to increase the outstanding disbursement balance,” the Governor informed.

There have been about 100 projects eligible for loans from the 120,000 billion VND package.

At the end of the discussion session yesterday afternoon (May 31), Minister of Construction Nguyen Thanh Nghi updated the progress of implementing the preferential credit package of 120,000 billion VND for investors and home buyers of social housing and worker housing projects.

Minister Nguyen Thanh Nghi said that after receiving instructions from the State Bank, the Ministry of Construction has issued a document guiding the determination of the list of projects, subjects, and preferential loan conditions of this credit package.

At the same time, the Ministry also authorized the provincial People's Committee to be responsible for reviewing and checking legal procedures for making a list of projects to build social housing, housing for workers; renovating and rebuilding apartments to publicly announce on the province's electronic information portal so that banks have a basis for applying for loans.

The Ministry of Construction has issued a document urging localities to implement the assigned tasks in the Project to invest in building at least 1 million social housing apartments for low-income people and industrial park workers in the 2021-2030 period, and has organized a conference to implement the project.

Minister of Construction Nguyen Thanh Nghi: To date, there are about 100 projects eligible for loans from the VND120,000 billion package. Photo: TUAN HUY

According to Minister Nguyen Thanh Nghi, through reports from localities, up to now there have been about 100 projects eligible for loans under this package. Localities have announced their loan needs such as: Binh Dinh 1,832 billion VND, Phu Tho 441 billion VND, Da Nang 545 billion VND, Tra Vinh 420 billion VND, Bac Giang 4,527 billion VND, Hai Phong 3,892 billion VND...

“In fact, localities have only been implementing the package for over a month, while the VND120,000 billion package is for the entire period until 2030. Localities are in the process of synthesizing and announcing it, so only initial results are available. In the coming time, there will be more projects participating in this package,” said Minister Nguyen Thanh Nghi.

To achieve the set goals and effectively disburse the support package, the Minister of Construction said that he will continue to coordinate with the State Bank and ministries, branches and localities to remove obstacles in mechanisms and legal policies such as focusing on amending the Housing Law and other related laws; continue to work with a number of key localities and enterprises to inspect, urge and create supply sources for social housing, workers' housing, and renovation of old apartments; and promote the implementation of the support package.

NGUYEN THAO