Deputy Prime Minister Tran Hong Ha said the credit package aims to partly implement the plan on building 1 million social housing apartments

Ha on May 24 had a working session with the Minister of Construction (MOC), State Bank of Vietnam (SBV) and Government Office on the deployment of the preferential credit package of VND120 trillion funding the development and purchase of social housing products.

Chair of the Government Office Tran Van Son said the demand for social housing is very high, but money still has not been spent.

Many problems have arisen during the plan implementation, causing disbursement to go very slowly. This includes difficulties in land arrangement, the lack of social housing planning in localities, and complicated procedures in land-use fee exemption for social housing projects and other paperwork. 

As a result, enterprises are waiting for the Law on Housing (amended) to take effect with more open procedures.

In addition, documents that guide the implementation of the plan were just promulgated in April 2023, while localities are still compiling the lists of social housing projects, houses for factory workers and other subjects who meet conditions to borrow capital.

Some experts and realtors have suggested that the developers of social housing projects should also be subject to preferential loans. It is necessary to extend the time for enjoying preferential interest rates for buyers and project developers; and simplify procedures for land-use fee exemption applied to social housing projects.

Minister of Construction Nguyen Thanh Nghi said in April 2023, MOC and SBV gave instructions and urged the implementation and simplification of procedures and shortening of time for paperwork, so as to allow enterprises to access loans soon.

Deputy Prime Minister Tran Hong Ha stressed that the VND120 trillion package is not being used to rescue the real estate market, but it serves implementation of the plan on developing at least 1 million social housing apartments for low-income earners and factory workers in Industrial Zones in 2021-2030.

Most of the obstacles related to procedures for social housing projects, housing for factory workers, and the conditions for buying these properties are being amended and supplemented in the Law on Housing and Land Law. In general, the problems will be settled after the laws take effect.

In the immediate time, Ha has requested local authorities to accelerate planning and arrange land banks for social housing development. The land plots should be located on favorable positions, and have a large scale and technical and social infrastructure, especially in large cities.

MOC reported that 100 social housing projects in 36 localities under the VND120 trillion program have been granted construction licenses.

Anh Phuong