On the afternoon of November 7th, Mr. Nguyễn Đức Lệnh, Deputy Director of the State Bank of Vietnam Zone 2, overseeing Ho Chi Minh City and Dong Nai Province, announced that the Vietnam Bank for Social Policies (VBSP) in Dong Nai has reduced the interest rate on social housing loans. The rate has been lowered from 6.6%/year to 5.4%/year for all customers with outstanding loans for purchasing or leasing social housing.
“From a professional standpoint, this adjustment aligns with regulations. However, from a management perspective, it holds significant and practical benefits for citizens, particularly those eligible for social housing policies,” stated Mr. Lệnh.
VBSP Dong Nai reduces social housing loan interest rate from 6.6%/year to 5.4%/year
Mr. Lệnh further explained that, in accordance with the Decree on lending interest rates and transitional provisions, VBSP Dong Nai has implemented the reduced rate of 5.4%/year for 1,255 customers, with a total outstanding debt of over 531 billion VND (as of October 2025). This initiative provides motivation and joy to many policy beneficiaries who are renting, leasing, or purchasing social housing through VBSP in the province.
This reduction directly benefits and enhances the quality of life for policy beneficiaries acquiring social housing. By lowering the interest rate by 1.2%/year, borrowers face reduced debt repayment pressure. This allows them to allocate more income toward improving their overall living standards, thanks to lower interest expenses.
Furthermore, this measure aligns with practical needs and facilitates easier access to housing capital. Adjusting interest rates, expanding lending criteria (such as increasing the low-income threshold), and implementing other housing supply solutions create a comprehensive approach. These steps ensure citizens can effectively access social policy resources to establish their homes.
“In terms of costs, lower interest rates reduce borrowing expenses and total debt repayment (principal and interest). This not only ensures borrowers can manage their principal and interest payments but also improves their overall well-being: they gain housing while maintaining household spending. This adjustment thus offers dual benefits and drives development toward social security and enhanced growth quality,” added Mr. Lệnh.
Previously, the People’s Committee of Dong Nai Province announced a list of eight eligible social housing and worker housing projects. These projects qualify for preferential loans under the 120 trillion VND credit program for social housing, worker housing, and apartment renovations. This announcement enables banks to provide preferential loans to developers and homebuyers, fostering the expansion of the social housing fund in the province.
