Vietcombank absent from the list
According to a report by the State Bank of Vietnam (SBV) on the progress of the VND 120 trillion credit package for investors and homebuyers of social housing projects, worker housing, renovation projects, and rebuilding old condominiums, only 28 out of 63 provincial and municipal People’s Committees have sent letters or announced the list of projects participating in the program, with a total of 68 projects.
The localities with the most announced projects include Hanoi (6 projects), Ho Chi Minh City (6 projects), Bac Ninh (6 projects), Binh Dinh (5 projects), etc. Among them, 30 projects have a need for loans, while the remaining projects do not need loans as they have been completed or have arranged other sources of funding.
Commercial banks have committed to providing loans for 15 projects with a total amount of about VND 7 trillion. Among these are 10 projects with a need for disbursement, including 7 projects providing credit to investors, 2 projects providing credit to homebuyers, and 1 project providing credit to both investors and homebuyers.
The committed credit amount for 8 project investors is VND 1,965 billion, with VND 640 billion disbursed so far. And for homebuyers in 3 projects, the committed amount is VND 7 billion, with VND 6 billion disbursed.
Specifically, BIDV has disbursed loans for 3 project investors in Phu Tho, Thanh Hoa, and Binh Duong provinces, with a total amount of VND 95.7 billion. VietinBank has disbursed loans for 1 project investor in An Giang province, with an amount of VND 128.6 billion, and for homebuyers in 1 project, with an amount of VND 400 million.
Agribank has disbursed loans for 4 project investors in Bac Ninh, Quang Ninh, and Kien Giang provinces, with a total amount of VND 415.7 billion, and for homebuyers in 2 projects, with an amount of VND 5.7 billion.
The report by the SBV does not mention Vietcombank.
 A social housing project in Thu Duc City, Ho Chi Minh City, expected to be completed this year. Photo: C.T.V |
What are the difficulties?
During the implementation of the program, the SBV has identified some difficulties, mainly related to the supply of housing and homebuyers.
Regarding the housing supply, some projects in the announced list do not require loans as the investors have completed the projects or obtained loans from other sources. Some projects face legal obstacles, land clearance issues, procedures for land use fees calculation, and land use conversion… These legal obstacles also prevent credit institutions from having a basis to provide loans to project investors.
Regarding homebuyers, currently, some buyers in certain projects have already obtained loans from the Social Policy Bank under Decree 100/2015/ND-CP, indicating that these individuals are more likely to choose loans from the Social Policy Bank with preferential interest rates (the program is supported by the state budget).
Customers who buy houses in social housing projects, worker housing projects, or projects for renovating and rebuilding old condominiums have been affected by economic difficulties, such as labor cuts, reduced wages due to the lack of orders… leading to a decrease in their income.
Therefore, customers prioritize maintaining their living expenses and have not considered buying houses at this time.
The VND 120 trillion credit package has been implemented for nearly 10 years to realize the goal of constructing at least 1 million social housing units. The interest rate for loans during the support period is lower by 1.5-2% compared to the average long-term interest rate of 4 state-owned commercial banks in each period; every 6 months, the SBV announces the interest rate for loans during the support period for credit institutions.
Since the implementation of the program, the SBV has adjusted the interest rate twice, gradually reducing it for both project investors and homebuyers, from 8.5% per annum and 8% per annum (from April 1, 2023) to 8.2% per annum and 7.7% per annum (from July 1, 2023); and further reducing it to 8% per annum and 7.5% per annum starting from January 1, 2024.
Tuan Nguyen
