Social housing credit expands, but disbursement constrained by supply

Social housing credit expands, but disbursement constrained by supply

As of August 31, loan commitments under the programme stood at about VNĐ50.3 trillion, nearly three times the level at the end of 2025.

A social housing project under construction in Quảng Trị Province. — VNA/VNS Photo Nguyên Linh

Eleven commercial banks are participating in a social housing lending programme with a combined scale of more than VNĐ152 trillion (US$5.8 billion), up from the initial VNĐ120 trillion backed by four State-owned lenders, according to the State Bank of Vietnam (SBV).

The programme’s lending rates have been adjusted six times and currently stand at 7 per cent a year for developers and 6.5 per cent for home buyers. The preferential rates apply for three years for developers and five years for buyers.

Home buyers under 35 are eligible for preferential lending for up to 15 years, with rates two percentage points below the average medium- and long-term lending rate of four State-owned commercial banks for the first five years, and one percentage point lower for the following 10 years.

As of August 31, loan commitments under the programme stood at about VNĐ50.3 trillion, nearly three times the level at the end of 2025. Disbursements reached around VNĐ17.5 trillion, up nearly VNĐ10 trillion from the end of last year.

Loans to buyers under 35 accounted for about VNĐ577 billion in disbursements, with outstanding loans of around VNĐ531 billion.

The programme’s outstanding loans are at around VNĐ14.3 trillion, just less than 10 per cent of the total committed fund.

Nguyễn Xuân Bắc, deputy head of the SBV's Credit Department for Economic Sectors, said limited social housing supply had constrained lending.

Although the Government and ministries have introduced measures to accelerate housing supply, funds cannot be disbursed immediately, Bắc said. Disbursements must follow construction progress, completed work volumes and the actual funding needs of developers.

He said effective disbursement requires an adequate supply of social housing, projects to stay on schedule and borrowers to meet lending requirements.

The central bank will continue directing its regional branches and credit institutions to implement the programme while working with ministries, particularly the Ministry of Construction, to address obstacles, according to Bắc.

A report by Vietnam Bank for Social Policies (VBSP) shows that demand for social housing finance is also strong.

VBSP was allocated over VNĐ6.3 trillion for social housing lending nationwide in 2026. As of September 25, outstanding loans from this fund had reached VNĐ5.1 trillion, or 81 per cent of the annual plan.

The remaining VNĐ1.2 trillion has been earmarked for disbursement under previously signed loan agreements.

The bank said it has completed 100 per cent of its assigned social housing lending plan for the year and proposed additional funding.

Under Resolution 303/NQ-CP dated September 30, the Government set a target of 899,857 social and rental housing units to be developed through 2030.

Of that total, 708,834 units are earmarked for sale or lease-purchase, while 191,023 units are designated for rental housing. 

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