Deputy Prime Minister Tran Hong Ha said the VND120 trillion package aims to build at least 1 million social housing units instead of rescuing real estate.
The VND120 trillion credit package is a loan package to support investors and homebuyers of social housing and worker housing projects with interest rates 1.5-2% lower than market rates. This package was implemented on April 1, but for nearly two months no one has borrowed.
"The implementation of the 120,000 billion VND package is not to rescue the real estate market but to achieve the goal of having at least 1 million social housing apartments by 2030," Deputy Prime Minister Tran Hong Ha said at a meeting on the progress of this package on May 24.
According to him, most of the problems related to the process and procedures for implementing social housing and worker housing projects, as well as the conditions for purchasing this type of housing, have been amended and supplemented in the Housing Law and the Land Law, which are being submitted to the National Assembly. These problems will be completely resolved after the above laws come into effect.
Deputy Prime Minister Tran Hong Ha at the meeting on May 24. Photo: VGP
According to a report by the Ministry of Construction, there are currently about 100 social housing and worker housing projects in 36 localities that have been licensed. More than 85,660 apartments from these projects have a total investment of about 70,000 billion VND.
Localities have 7 projects to renovate and rebuild apartments with a need for loans of about 4,130 billion VND. In addition, Bac Giang has also announced 12 projects eligible for loans. Some other localities such as Binh Duong and Dong Nai are implementing social housing and worker housing projects. In Hanoi alone, there are currently more than 4,000 social housing apartments on the market and about 40 projects under implementation.
In April 2023, the Ministry of Construction and the State Bank provided guidance, reduced procedures, and shortened the time for document appraisal so that businesses could soon access loan capital.
Analyzing the reasons why the credit package has not been disbursed, Minister and Head of the Government Office Tran Van Son said that the demand for social housing is very large but the implementation process still has many problems in land allocation and lack of planning for social housing development in localities. Therefore, some businesses are waiting for the Housing Law (amended) to take effect with more open processes and procedures.
In addition, due to the newly issued guidance documents (in April 2023), localities are still making a list of social housing projects, worker housing projects and eligible borrowers.
Faced with this problem, the Deputy Prime Minister assigned localities to speed up planning and land allocation for the construction of social housing and workers' housing in suitable, convenient locations, on a large scale, with full technical and physical infrastructure, especially in large cities such as Hanoi, Ho Chi Minh City, Hai Phong, Da Nang, and Can Tho.
The Ministry of Construction instructs localities to periodically report monthly on the progress of implementing the 120,000 billion VND credit package.
"The State Bank and the Ministry of Construction continue to research and propose appropriate interest rate support plans and periods for investors and home buyers eligible to borrow from the VND120,000 billion credit package," the Deputy Prime Minister requested.
Duc Minh
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