Since the credit package was launched by the Prime Minister in March 2023, six projects have met requirements to access the package, but no money has been disbursed.

The manager of a real estate firm said the social housing project in Thu Duc City registered by his firm was recognized as meeting requirements by the HCM City Construction Department in June 2023.

He wants to borrow VND190 billion from the preferential credit package to develop the project and bankers have examined the project, but there has been no commitment on disbursement.

Another social housing project to lease to factory workers in Thanh My Loi ward in Thu Duc City with 1,000 apartments, capitalized at VND700 billion, also has not accessed the package. 

BIDV Bank District 7 Branch has examined the application for loans and promised to lend up to VND585 billion. However, the bank has not made any disbursement.

In addition to the two projects, four other projects, including two social housing and two old apartment improvement projects, are still following procedures to access loans.

Huynh Thanh Khiet, deputy director of the HCM City Construction Department, said the VND120 trillion credit package is the commitment of four state-owned commercial banks to provide loans to real estate developers and buyers of social housing and housing products for workers.

The lending interest rates under the credit package are 1.5-2 percent lower than the average medium-term loans applied by the four commercial banks.

While confirming that commercial banks support the program, he said commercial banks need to examine borrowers’ dossiers before deciding whether to provide loans, and each bank follows its own principles. 

For example, developers must show land-use right certificates for land plots on which they intend to build social housing products. They cannot mortgage the land plots for loans, but must use other assets as collateral for loans.

Most projects, after land allocation and decisions on new land-use purposes, still have not followed procedures to get land-use right certificates. 

As for the projects on rebuilding apartment blocks, in addition to the requirements set by the Ministry of Construction (MOC), banks will only consider loans if investors can show certificates on land allocation and construction permits.

The HCM City Construction Department has asked MOC to work together with the State Bank of Vietnam and Ministry of Natural Resources and the Environment to solve the problem.

Anh Phuong