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NHNN Deputy Governor Pham Thanh Ha speaks at the conference – Photo: VGP/Nhat Bac
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Speaking at the conference on the implementation of Resolution No. 201 of the 15th National Assembly on June 2, 2025, in Hanoi, NHNN Deputy Governor Pham Thanh Ha shared that the banking sector has clearly defined its role in deploying preferential credit policies for social housing development. The sector closely follows the Government, the Prime Minister, and important resolutions such as Resolution No. 33/NQ-CP and, most recently, Resolution No. 201/2025/QH15 passed by the National Assembly.
Since the beginning of 2025, the NHNN has issued Official Letter No. 55/NHNN-TD, allowing commercial banks to participate in the social housing lending program without counting the program’s debt towards their annual credit growth targets. Furthermore, the NHNN has continuously adjusted procedures and processes to facilitate easier access to capital for people and businesses.
Notably, the NHNN has collaborated with the Ministry of Construction to organize over 10 conferences to promote the program’s implementation and issued numerous documents directing local bank branches to coordinate with local authorities and investors to resolve obstacles in specific projects. This proactive approach demonstrates the banking sector’s commitment to realizing the central government’s initiatives at the grassroots level.
To date, nine commercial banks have registered to participate in the program, committing a total of VND 145,000 billion. The NHNN has adjusted the interest rates five times, gradually reducing them. Currently, the lending rate is 6.6%/year for investors and 6.1%/year for homebuyers, which is lower than the rate specified in Decree 100/2024/ND-CP.
However, the disbursement rate has not met expectations. According to reports, only about 100 projects nationwide have been announced to participate in the program, with only 53 projects accessing loans. Twenty-eight projects did not require loans, mainly because they did not need capital or had self-mobilized funds from buyers. The remaining projects are in the process of appraisal or approaching banks.
“The slow disbursement is due to the shortage of social housing supply, which hinders banks’ ability to disburse funds despite their readiness to provide capital,” said Deputy Governor Pham Thanh Ha. “Additionally, many localities have not announced the list of participating projects or have done so slowly, leading to passive coordination and a lack of information.”
A separate credit package will be offered for young people under 35 years old to buy social housing
Regarding preferential interest rates, Deputy Governor Pham Thanh Ha shared that, in addition to the overall program under Resolution 33, a notable highlight is the implementation of a separate credit package for young people under 35 years old to purchase social housing. According to Official Letter No. 4290/NHNN-TD dated May 29, 2025, this program allows young people to borrow at preferential interest rates for 15 years, with a 2% reduction in the first five years and a 1% reduction in the next ten years compared to regular interest rates.
This policy demonstrates the State’s priority for urban youth, workers, and low-income earners, contributing to solving the housing needs of this young workforce, which is a pillar of sustainable development.
From a local perspective, Mr. Duong Duc Tuan, Vice Chairman of Hanoi People’s Committee, expressed his commitment to ensuring the availability of 100,000-120,000 social housing units by 2030. He also shared that Hanoi is preparing land for about 1,000 hectares, with 20 important projects. Therefore, the Hanoi leadership proposes implementing investment projects, independently preparing land funds for projects to proactively save time. Land clearance takes a considerable amount of time, sometimes even longer than other investment project procedures, so specific guidance is needed.
Some localities have proposed conducting surveys, measurements, and compensation for site clearance before the investment policy decision is made, which is not clearly defined in the current law.
Regarding social housing, Deputy Minister of Finance Do Thanh Trung shared that the Ministry is actively coordinating with the Ministry of Construction to advise the Government on issuing general guidance. They are also coordinating support stages, including supporting investors, building funds, and supporting buyers to ensure smooth and effective credit flows.
Many issues arising from the actual implementation are also being considered for adjustment. Regarding interest rates, the Ministry of Finance leader said that with the current fiscal mechanism, the State budget compensates interest rates for commercial banks to provide preferential loans. The Ministry of Finance will direct the Development Bank to coordinate with the Social Policy Bank to ensure credit sources. The Ministry of Finance is actively researching the interest rate subsidy mechanism, the Housing Development Fund, and providing feedback on related policy revisions.
– 09:20 03/06/2025
