JavaScript is off. Please enable to view full site.

Vietnam approves $5.1bn credit package for social housing projects

Vietnam approves $5.1bn credit package for social housing projects

Monday, March 13, 2023, 10:13 GMT+7
Vietnam approves $5.1bn credit package for social housing projects
The loan interest for buyers or developers of social housing projects and houses for workers will be 1.5-2 percentage points lower than average lending rates. Photo: T.N. / Tuoi Tre

The Vietnamese government has assigned the State Bank of Vietnam (SBV) to deploy a credit package worth VND120 trillion (US$5.1 billion) for developing social housing projects and upgrading deteriorating apartment buildings.

The credit package is part of the government’s solutions to develop social housing projects, helping boost the safe, healthy, and sustainable development of the local real estate market.

In particular, the central bank will direct commercial banks, mainly four state-owned banks -- the Vietnam Bank for Agriculture and Rural Development (Agribank), the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), and the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) -- to offer loans with interest rates that are 1.5-2 percentage points lower than average lending rates.

The loans will be provided to investors and buyers of social housing, houses for workers, and old apartment rebuilding projects.

The central bank was also assigned to coordinate with the Ministry of Construction and other relevant ministries and agencies to establish the criteria for eligible projects and beneficiaries of the credit package.

According to the Ministry of Construction, the credit package can meet some 12 percent of the needed capital for one million social houses and houses for workers in the 2021-30 period.

While waiting for the National Assembly’s approval for the amended housing law, the government will build and ask for the legislature’s approval for a resolution piloting some policies to remove some difficulties during the development of social houses.

The resolution will pave the way for the handover of land for social housing projects, the selection of investors for these projects, and the determination of their selling prices and rentals. It will also include incentives for investors of social housing projects and criteria for those enjoying preferential policies.

To remove difficulties of the property market, the government also required the SBV to ask credit institutions to review and classify real estate projects, extend principal and interest payment deadlines, and restructure loans in line with the law to ensure safety for the banking system.

The banking sector should reduce operation costs to make room for lending rate cuts.

The government also asked the SBV to direct credit institutions to help investors of real estate projects and homebuyers access capital, and continue offering loans for those projects meeting the requirements and having a clear loan payment plan.

Commercial banks should assess enterprises’ production and business as well as the potential and segment of projects to adjust lending requirements.

The central bank will tailor the risk coefficient to different real estate projects.

Additionally, the government requested the Ministry of Finance to review and propose the amendment and supplementation of legal documents relating to the issuance of corporate bonds, especially private placements in the domestic market and bond issues in international markets.

The ministry will also have to ensure real estate enterprises’ mobilization of capital from the securities market and prevent stock speculation, manipulation and price gouging.

Like us on Facebook or  follow us on Twitter to get the latest news about Vietnam!

Thanh Ha - Bao Ngoc / Tuoi Tre News

More

Read more

18 die of rabies in Vietnam in Jan-Feb

Nearly 70,000 people suffering dog and cat bites received treatment at hospitals and got vaccinated against rabies during the two-month period

2 days ago
;

Photos

VIDEOS

‘Taste of Australia’ gala dinner held in Ho Chi Minh City after 2-year hiatus

Taste of Australia Gala Reception has returned to the Park Hyatt Hotel in Ho Chi Minh City's District 1 after a two-year hiatus due to the COVID-19 pandemic

Vietnamese woman gives unconditional love to hundreds of adopted children

Despite her own immense hardship, she has taken in and cared for hundreds of orphans over the past three decades.

Vietnam’s Mekong Delta celebrates spring with ‘hat boi’ performances

The art form is so popular that it attracts people from all ages in the Mekong Delta

Vietnamese youngster travels back in time with clay miniatures

Each work is a scene caught by Dung and kept in his memories through his journeys across Vietnam

Latest news