Social housing projects in Đồng Nai Province. VNA/VNS Photo

The Ministry of Construction has proposed a VNĐ100 trillion (US$3.9 billion) credit package, funded by Government bonds, to develop social housing.

A draft resolution on the package is being compiled by the ministry and will be open for feedback from relevant ministries and agencies before its submission to the Government.

The package will be allocated for the Social Policy Bank to offer loans to purchase or build, renovate and repair social housing.

The interest rate of the preferential credit package is equal to the interest rate for poor households as decided by the Prime Minister in each period.

The disbursement rate must not be later than December 31, 2030.

It is expected that about VNĐ16.5 trillion will be disbursed each year during the 2025-29 period, while about VNĐ17.5 trillion will be allocated in 2030 alone.

The draft resolution aims to ensure funding for the 'One Million Social Housing Units' project for low-income people and industrial park workers across the 2021-30 period.

It aims to create conditions for those groups to have a place to live, provide housing support for social policy beneficiaries, low-income people and the poor facing housing difficulties.

According to the Ministry of Construction, the project requires an investment of up to VNĐ500 trillion.

The Government previously approved a VNĐ120 trillion package, which does not include State budget support, to offer preferential loans from four commercial banks at rates 1.5 to 2 per cent lower than standard lending rates.

But after over one year of implementation, the disbursement results remain sluggish with only over one per cent, or VNĐ1.2 trillion taken up.

The Ministry of Construction proposed the Government assign the Ministry of Finance to review and evaluate the potential for issuing Government bonds to study the feasibility of the VNĐ100 trillion package. — VNS