The Ministry of Construction has drafted a resolution to allocate approximately VND100 trillion in government bond funds for the development of affordable housing. This proposal is currently under review by various ministries and agencies. If approved, this credit package will provide substantial support to low-income earners and industrial workers, facilitating their access to affordable housing.
The Ministry of Construction has announced that a preferential credit fund amounting to VND100,000 billion has been allocated to the Vietnam Bank for Social Policies. This fund is intended to facilitate loans for the purposes of purchasing, leasing, constructing, renovating, and repairing social housing. The interest rate associated with this credit package will align with the rate designated for low-income households, as determined by the Prime Minister during each respective period.
The distribution and allocation of the preferential credit package designated for social housing development is anticipated to occur in phases. Specifically, from 2025 to 2029, approximately VND16,500 billion will be disbursed annually, while in the year 2030, around VND17,500 billion is expected to be disbursed. The disbursement period for this credit package will continue until all funds have been fully allocated, with a final deadline of December 31, 2030.
At present, the development of social housing is financed through two primary sources: a VND 120 trillion credit package self-balanced by commercial banks and funds allocated by the Vietnam Bank for Social Policies pursuant to Decree 100 on social housing.
Of which, the VND120,000 billion credit package provides loans to invest in and buy social housing with interest rates 1.5 percent - 2 percent lower than the average commercial loan interest rate of 4 state-owned commercial banks.
However, after more than one year of implementation, this credit package has a very low disbursement rate because the loan interest rate and loan conditions are not really preferential for low-income earners in urban areas and industrial park workers.