Credit package for social housing development not yet disbursed: SBV
Credit package for social housing development not yet disbursed: SBV
The credit package of VND120 trillion (US$5 billion) for social housing development has not yet been disbursed due to many challenges.
Nguyen Xuan Bac, deputy director of the Department of Credit for Economic Sectors, the State Bank of Viet Nam (SBV), made the statement at a conference held by the Ministry of Construction on Friday.
The conference saw discussions and updates on the implementation of the project to build at least one million social housing apartments for low-income people and workers in industrial parks in the 2021-30 period.
Implementing Resolution 33/NQ-CP issued by the Government on solutions promoting the safe, healthy and sustainable development of the real estate market, SBV set a credit package of VND120 trillion for social housing development and a project on developing one million social houses.
This credit package is carried out by four State-owned commercial banks, Vietcombank, Agribank, BIDV and VietinBank, with annual interest rates 1-2 per cent lower than the average interest rates offered for middle- and long-term deposits by commercial banks. This programme has been implemented since April 1, 2023. The package will also provide loans for rebuilding old apartments with preferential interest rates.
The package will focus on lending to both investors and homebuyers of eligible projects, creating conditions to promote the strong development of the social housing market.
However, Bac said the implementation of this loan programme still faces many challenges. At present, the supply of social housing is still limited due to the difficulties relating to finding investors for social housing projects and land fund for those projects. The challenges also include a lack of attractive incentives for investors and difficulty in determining the selling price of social houses.
According to Bac, up to now, the central bank has not yet received the list of eligible projects according to the Ministry of Construction's Official Dispatch No. 1551/BXD-QLN. Therefore, although it was effective from April 1, 2023, so far, the VND120 trillion package has not yet have any borrowers.
In addition, the existing regulations on conditions of buying social housing such as conditions on residence and personal income tax, and increasing house prices are obstacles for low-income home seekers.
The central bank recommends that coordination of ministries, agencies and localities in carrying out this credit programme be boosted to contribute to reaching the goal of building at least one million social houses by 2030.
Accordingly, ministries and agencies need to review and amend relevant legal documents to remove obstacles in terms of legality and procedures in the investment and construction of social houses.
In addition, local authorities should pay attention to arranging land funds for social housing development and soon announce the list of eligible projects so their investors can access the loans in this credit package.
They should also provide information to investors of social housing projects as well as people about the loan programme.
At the conference, Deputy Minister of Construction Nguyen Van Sinh said the Ministry of Construction will continue to coordinate with related ministries and sectors in amending a number of laws, such as land and bidding laws, as well as policies and order of procedures.
The country completed 41 social housing projects for low-income people and workers of industrial parks by May 18, 2023 with a supply of about 19,516 apartments. About 294 social housing projects are under construction with a supply of about 288,499 apartments.
