Disbursement of VND120,000 billion preferential credit package slow

Disbursement of VND120,000 billion (US$ 4,877,708,416) preferential credit package for social housing development is still slow.

at the conference

This was heard at today’s national online conference to deploy the Investment Project to build at least 1 million social housing apartments for low-income people and industrial park workers in the period 2021- 2030.

The Ministry of Construction organized a virtual conference to remove obstacles and promote social housing construction in 2024 in localities. Deputy Prime Minister Tran Hong Ha attended the conference.

At the conference, Deputy Minister of Construction Nguyen Van Sinh emphasized that developing social housing and housing for workers is both one of the pillars of social security policies and an effective solution for the promotion of socio-economic development.

This is expected to contribute to more supply of houses for people in need and the restructuring of the real estate market, increasing the affordable housing segment for low- and middle-income people.

From 2021 until now, approximately 499 social housing projects have been implemented across the country supplying more than 411,000 apartments. Of these, 71 projects with nearly 40,000 apartments have been completed while the construction of 127 projects started providing nearly 108,000 apartments. Some 301 projects with 265,500 apartments have been approved for investment policies.

Regarding the implementation of the VND120,000 billion preferential credit package, 28 provinces have so far announced a list of 68 projects which are eligible for loans, with a loan demand of more than VND30,000 billion. Up to now, about VND415 billion has been disbursed for 6 social housing projects in 5 localities.

At the conference, participants pointed out many problems in implementing the project, leading to many localities having slow implementation results compared to the registered plan, including key localities with huge demand for social housing. For instance, Hanoi has 3 projects containing 1,700 apartments meeting 9 percent while Ho Chi Minh City has 7 projects comprising 4,996 apartments meeting 19 percent and Da Nang has 5 projects with 2,750 apartments meeting 43 percent of the demand.

Worse, some localities such as Vinh Phuc, Ninh Binh, Nam Dinh, Long An, and Quang Ngai still have not started the construction of any social housing project from 2021 until now.

In addition, the disbursement of the VND 120,000 billion preferential credit package is still slow compared to the needs of businesses which invest in social housing and housing for workers.

In particular, businesses investing in social housing and housing for workers still have many problems in construction investment procedures, credit, and preferential policies.

Deputy Minister Nguyen Van Sinh said that in the period 2021 - 2025, the country will complete about 428,000 apartments. Once difficulties are resolved, it will help projects that have been licensed and approved with investment policies to be completed on time, the project goal is to build at least 1 million social housing apartments by 2025 will be basically completed.

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