Accelerating disbursement of the 120 trillion VND credit package for social housing

Deputy Prime Minister Trần Hồng Hà has recently issued directives regarding the implementation of the 120,000 billion VND credit package for investors and buyers of social housing, workers' housing, and projects for the renovation and construction of apartment buildings.


Disbursement of a VND 120 trillion credit package for social housing is slow. Illustrative photo.

The Government Office has recently sent a Letter to Ministries, Agencies under the Ministry, Agencies under the Government; Provincial People’s Committees, Centrally-run cities to convey Deputy Prime Minister Tran Hong Ha’s opinions on the implementation of the VND 120 trillion credit package for social housing, worker housing, and reconstruction of apartment buildings.

Accordingly, the Deputy Prime Minister assigned the Ministry of Construction to compile and announce the list of projects that meet the favorable conditions for commercial banks to look up and consider lending according to the tasks assigned in Resolution No. 33/NQ-CP dated March 11, 2023 of the Government on some solutions to remove difficulties and promote the safe, sound, and sustainable development of the real estate market.

The Deputy Prime Minister also requested the Ministry of Construction and relevant ministries and sectors to review, amend, or propose competent authorities to amend related legal documents, especially urgently develop and complete drafts of detailed regulations, guidelines for the implementation of the Housing Law and the Real Estate Business Law passed by the 6th session of the 15th National Assembly to remove legal obstacles, procedures, and procedures in the investment, construction of social housing, and worker housing; review the regulations on Personal Income Tax Law to facilitate homebuyers who meet the income criteria to enjoy preferential policies for social housing.

Together with that, Provincial People’s Committees, Centrally-run cities urgently announced the list of social housing projects, worker housing, reconstruction, and renovation of apartment buildings. In which, the announced projects must comply with the guidelines of the Ministry of Construction in Official Letter No. 1551/BXD-QLN dated April 20, 2023 guiding the determination of project lists, objects, conditions, and criteria for preferential lending for the development of social housing, worker housing, and reconstruction, renovation of old apartment buildings.

Disbursed less than VND 100 billion

In response to questions about the VND 120 trillion credit package for social housing, Governor of the State Bank of Vietnam Nguyen Thi Hong said that the central bank is implementing the tasks according to the government’s resolution, aiming to have 1 million apartments in the next 10 years. According to Ms. Hong, this is a credit package using capital from credit institutions with preferential interest rates from banks.

The State Bank of Vietnam has issued guidelines for credit institutions to implement; at the same time, it has sent documents to Provincial People’s Committees/centrally-run cities concerned to announce projects eligible for lending under this credit package. The State Bank requires banks to issue internal procedures for implementation.

Ms. Hong said that recently, out of 63 provincial People’s Committees, 18 have announced projects participating in the program with 53 projects. So far, VND 105 billion has been disbursed for 3 projects in 3 provinces/cities.

According to the Governor of the State Bank of Vietnam, the lending conditions still have some points that are not suitable. The State Bank proposed Provincial People’s Committees/centrally-run cities to soon announce the list of projects eligible for lending. At the same time, the State Bank will strengthen information propaganda for people to be well-informed.

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