The Ministry of Construction has just reported to the Prime Minister on the implementation of investment in the construction of at least 1 million social housing apartments in the 2021-2030 period.
Accordingly, in the report, the Ministry of Construction mentioned that the preferential credit package of 120,000 billion VND for social housing development has so far disbursed 1,344 billion VND, of which 1,295 billion VND is lent to investors and 49 billion VND is lent to home buyers.
Currently, in addition to the four state-owned banks (Vietcombank, BIDV, Vietinbank, Agribank), there are only four other commercial banks (TPBank, VPBank, MBBank, Techcombank) participating in the program.
Some investors do not meet the lending conditions such as not ensuring credit balance conditions, not having other assets to mortgage, investors building social housing are exempted from land use fees so they do not meet the mortgage conditions...
Regarding lending interest rates, this credit package currently applies high interest rates, of which 8%/year for investors and 7.5% for home buyers. The short preferential period, 3 years for investors and 5 years for home buyers, has not really attracted borrowers.
The Ministry of Construction proposed that the State Bank direct and encourage other banks to participate in the VND120,000 billion package and consider reducing interest rates and extending loan terms for this credit package.
Regarding the results of implementing social housing projects, according to the Ministry of Construction, through synthesizing reports from localities, in the period from 2021 to present, the whole country has 619 social housing projects implemented with a scale of more than 560,000 units.
However, only 79 social housing projects have been completed, 128 social housing projects have started construction, and 412 social housing projects have been approved for investment.
Notably, some localities have high demand for social housing but no completed projects such as Thai Nguyen, Ninh Binh, Nam Dinh, Thua Thien Hue, Vinh Long, Ben Tre, Bac Lieu, Ca Mau.
