Economic experts believe that the preferential credit package for social housing projects is a correct policy, but in reality, there are many issues that need to be considered and adjusted. This is a capital source mobilized from the banking system, not using the State budget, in line with the goal of stabilizing the macro economy. Along with that, the lack of clean land funds, land procedures, and slow planning have caused many projects to face many difficulties even after being approved.
For home buyers, current loan conditions are still beyond their ability to pay. A couple with an income of 30 million VND/month, if they borrow 1 billion VND with an interest rate of about 6%/year, will have to pay nearly 19.3 million VND/month - far exceeding the financial balance of most young families.
Ms. Dang Thuy Duong (in Ha Dong) said that according to calculations, if you borrow about 1 billion VND to buy a house, the interest alone accounts for nearly 1/3 of your total income, "no more surplus for living expenses". Therefore, Ms. Duong hopes that the bank will need to extend the loan term to 35 - 40 years so that workers have the opportunity to own a house.
Another problem is that the loan interest rate for investors is currently at 6.4%, while the profit in social housing projects is controlled at 10% according to Clause 2, Article 85 of the 2023 Housing Law. Although investors are entitled to some incentives such as exemption from land use fees and land rents; maximum of 20% of residential land in the project is reserved for construction of service works, commercial or commercial housing. However, the profit calculated on total outstanding capital is still not attractive enough.
Some businesses believe that when interest rates float on the market, lending costs fluctuate strongly, making it difficult for businesses to maintain operations. Meanwhile, the price of construction materials such as steel and labor increased, but the selling price in the initial documents was not adjusted in a timely manner, causing profits to decrease sharply. Therefore, many investors are not interested in the social housing segment.
Speaking to Lao Dong Newspaper, Mr. Tran Dinh Quan - Business Director of Evergreen Bac Giang Sustainable Development Investment Joint Stock Company (the unit implementing many social housing projects) said that according to the new regulations, enterprises only need to ensure 20% of equity in the total investment to be able to participate in social housing projects, even though they do not have experience in implementation. Meanwhile, many reputable enterprises that have used to do social housing are facing difficulties due to the impact of the pandemic and are in debt, making it difficult to access the VND120,000 billion loan package. Therefore, Mr. Quan proposed to reduce assessment criteria but still ensure compliance with financial standards.
Mr. Quan also emphasized that the increase in raw material prices has caused the thin profit margin to become even thinner, while the social housing profit is controlled at 10%. Therefore, interest rates for businesses and home buyers need to be fixed at the ceiling instead of adjusted every 6 months. If interest rates are close to commercial interest rates, both investors and buyers will have difficulty accessing them.
