barriers to capital
Bac Giang is one of the provinces in the top of the country in social housing development - according to the assessment of the Ministry of Construction.There are currently 14 social housing projects in the province.
A representative of the Department of Construction of Bac Giang province said that the whole province has 3 projects eligible to borrow a preferential loan package of VND 120,000 billion for social housing, including: Evergreen Bac Giang Social Housing Area, Social Housing Area for Workers in Quang Chau commune (Viet Yen town); Nham Bien town Social Housing Area (Bac Giang city).
"However, up to now, no project has borrowed capital under the 120,000 billion VND package" - said a representative of the Department of Construction of Bac Giang province.
According to the Department of Construction of Bac Giang province, investors have approached commercial banks to carry out loan procedures, however, according to the report, investors have not borrowed capital because: Interest rates are still high and are only applied regularly for a certain period of time after being floating; the lending period and grace period for loans are still short.
Similarly in Da Nang, according to the assessment of the local Department of Construction, the implementation of social housing projects, although bringing some positive results, is still behind schedule. One of the reasons given is that the capacity of social housing investors is still limited, leading to project delays. Access to preferential loans under the VND120,000 billion package is still facing many difficulties. To date, the locality has announced a list of legal conditions for borrowing capital for 4 projects, but only 1 project has been allowed to borrow capital.
Many projects face difficulties due to investor capacity
In Tien Giang, the HQC Tan Huong social housing project started construction in 2016. However, it has been more than 8 years since the project has completed the construction of the technical infrastructure system and social infrastructure.
Mr. Huu - a worker working at a company in Tan Huong Industrial Park (Chau Thanh district, Tien Giang province) - shared: "I intend to buy social housing because the price is suitable for my income. But when I came to see the reality show, I saw that the project was still unfinished, not knowing when it would be completed. If we spend money to buy but the house is not finished, where do we know? ".
Mr. Ha Thien Y - Director of the Department of Construction of Tien Giang province - said that the reason why the HQC Tan Huong social housing project has not been completed is due to difficulties for investors. Investors have not been able to access loans related to social housing, leading to a delay in this project's progress.
In Bac Ninh - although it is the leading locality in the country in developing social housing, most social housing projects are very successful, but the Sao Hong project (Que Vo town) is facing difficulties due to the investor's capacity.
According to the sale and purchase contract, the expected time for the investor to hand over the apartment to the customer is in the first quarter of 2021, but it has been 4 years with 11 delays in handover, many customers have not yet received the house.
Regarding the reason why the Sao Hong social housing project is many times behind schedule in handover compared to expected, a representative of the Department of Construction of Bac Ninh province said that although it has been assessed for capacity, during the implementation process, the investor encountered difficulties in capital sources due to many factors such as epidemics, changes in legal representatives, and implementation problems...
After many urgeries from the Department of Construction of Bac Ninh province, the investor of the Sao Hong project has recently committed to completing the unfinished items by March 31, 2025 to hand over to the people.
High interest rates, short incentive periods
According to the Resolution of the National Assembly on real estate market management and social housing development issued in December 2024, the VND120,000 billion credit package is not attractive enough for investors and home buyers.
The budget support capital for social housing preferential credit programs is still low. The lending process and procedures through the Social Policy Bank are still complicated and overlapping. This makes many goals on social housing development in the National Housing Development Strategy to 2020 and vision to 2030 difficult to achieve. In fact, many businesses and social housing buyers have reported high preferential loan interest rates, while the preferential period is short.
