This was highlighted in a government press conference on August 5, where reports provided an update on the country's economic and social progress in the first seven months of the year.
During the press conference, related to the social housing construction program with a support credit package of VND120,000 billion, Deputy Minister of Construction Bui Xuan Dung stated that as of July 30, 2024, a total of 619 social housing projects have been implemented nationwide, with a scale of 561,816 apartments.
Among these, some 40,679 apartments have been completed while roughly 111,688 have been granted permits and started construction, and 409,449 have received investment approval.
In the first six months of 2024, a total of 8 projects have been completed. Of these, four projects were fully completed and the other four projects are partially completed providing the local market with 3,136 apartments. Additionally, 8,468 apartments have been granted permits for construction, and 9 projects have received investment approval for a total of 8,795 apartments.
The goal for 2024 is to strive for the completion of approximately 130,000 condos. As of the first half of 2024, around 3,100 apartments have already been completed, leaving over 100,000 apartments to be finished by the end of the year.
The Ministry of Construction has set the objective to complete the projects that have started construction on schedule in 2024. This ambitious timeline places significant pressure on various levels of government, departments, and local authorities.
Regarding the VND120 trillion (US$4,768,387,287) credit support package, a summary indicates that only 34 out of 63 provinces and cities have published documents announcing 78 eligible projects for preferential loans on their electronic information portals. Banks have disbursed a total of VND1,344 billion, including VND1,295 billion for project developers across 12 projects and VND49 billion for home buyers in 5 projects.
Banks have implemented a credit program of approximately VND120 trillion for developers and home buyers in social housing and housing for workers, offering interest rates lower by about 1.5 percent-2 percent compared to the average long-term lending rates of state-owned commercial banks in the market during various times.
Currently, the State Bank of Vietnam is seeking opinions from relevant ministries and agencies to propose adjusting the content of the VND120 trillion program by reducing interest rates for customers purchasing homes by 3-5 percent (while maintaining the existing support level of 1.5-2 percent for developers).
The Ministry of Construction has agreed with the State Bank of Vietnam’s proposal to facilitate access to preferential funding for citizens and businesses, addressing difficulties and promoting social housing.
During the regular government meeting on August 5, the Prime Minister also agreed with the State Bank of Vietnam’s proposal and requested prompt completion and approval of the resolution to adjust the content of the VND120 trillion program.
The Ministry of Construction has proposed that the State Bank of Vietnam encourage more commercial banks to participate in lending the VND120 trillion credit package.
Moreover, the State banks should relax credit policies to facilitate commercial banks in extending the loan term and interest rate for the VND120 trillion package.
The State Bank will extend the loan term to 10-15 years with more preferential interest rates, 3-5 percent lower than those offered by regular commercial banks with the aim to support low-income earners and workers in industrial zones.
