State bank urged to study credit packages for young homebuyers

State bank urged to study credit packages for young homebuyers

Banks are also being instructed to rigorously inspect loans involving real estate collateral.

The SBV is tasked with guiding commercial banks to increase lending and disbursement activities in the real estate sector, especially for affordable housing projects. Photo chinhphu.vn

The Government has directed the State Bank of Vietnam (SBV) to prioritise lending for commercial housing projects with reasonable prices and to research credit packages for young people looking to buy homes.

The SBV was also tasked with guiding commercial banks to increase lending and disbursement activities in the real estate sector, particularly focusing on housing projects that align with market affordability. The move aims to stimulate credit growth and support the Government’s goal of achieving 8 per cent GDP growth in 2025.

Commercial banks are also encouraged to actively participate in a VNĐ120 trillion preferential credit loan programme for the housing sector.

Additionally, the SBV is exploring the development of medium-term credit packages with stable interest rates for affordable commercial housing projects.

Banks are also being instructed to rigorously inspect loans involving real estate collateral. This includes ensuring proper asset valuation, compliance with lending regulations and implementation of effective credit risk management practices.

To facilitate greater access to credit, the SBV has also been asked to streamline administrative procedures and lending conditions for both individuals and businesses.

At the same time, regulatory oversight will be tightened to prevent corruption, market manipulation and the creation of artificial property price levels.

Meanwhile, the Government has assigned the Ministry of Construction, in coordination with the Ministry of Agriculture and Environment, to urgently review the existing Housing Law and Real Estate Business Law. The goal is to identify legal inconsistencies and practical challenges that hinder the healthy development of the real estate market.

The outcome of this review will form the basis of a Government report to be submitted to the National Assembly, and also propose a resolution to amend relevant laws including those governing land, housing and real estate businesses.

The Government has also ordered a comprehensive review of all related decrees and circulars, emphasising the need to eliminate burdensome administrative procedures and align regulatory frameworks with current market realities. The result of these reviews is expected to be submitted to the Government later this month.

Local authorities are being urged to expedite land-use planning and create land reserves for housing development, especially in urban areas and industrial parks. Simultaneously, authorities are tasked with developing new urban zones in tandem with expanding highway and transport infrastructure.

In a bid to modernise real estate transactions, the Government is studying the creation of a State-managed real estate transaction centre.

This will integrate electronic processing for all property-related procedures, including notarisation, tax filing and land registry, mirroring the transparency and efficiency of the securities trading model. Those issues are also expected to be reported to the Government this month.

Finally, the Ministry of Agriculture and Environment, in close coordination with the Ministry of Construction, has been instructed to review land laws to ensure unified State management of land and housing.

This includes evaluating current site clearance mechanisms and comparing the effectiveness of State-led versus enterprise-led models, with findings to be reported to the Prime Minister within the month. 

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