A credit package worth some VND20 trillion (US$952.38 million) will be released to support homebuyers interested in commercial and urban housing projects, reported Xay Dung, the Ministry of Construction's e-paper.

The ministry made the announcement in a document sent to the government office, whereby it approved the lending programme suggested by the State Bank of Viet Nam.

The central bank will disburse the fund through commercial banks in which it has controlling stakes. They include Vietcombank, VietinBank and BIDV, along with Agribank and Viet Nam Development Bank.

Deputy Minister of Construction Pham Hong Ha said the programme was aimed at boosting the real estate market while helping lending institutions speed up bad debt settlement.

Savills Vietnam's managing director Neal Macgregor recently told the press in HCM City that Viet Nam's social and economic factors were supporting the growth of its real estate market, which had bottomed out.

He emphasised that the amended Law on Housing, effective from July 1, 2015, which will enable overseas Vietnamese and foreigners to own houses in the country, is expected to attract a new wave of investment.

Viet Nam was among the top foreign remittance recipients globally, with last year's remittance reaching $12.5 billion, and the inward flow of capital had recently accelerated, noticeably from Singapore, Korea, and Japan.

The country's urbanisation rate, from less than 20 per cent in 1995 to 34 per cent last year, and its rapidly growing middle class - expected to reach 33 million by 2020 from 12 million in 2012 — were positive factors for the property market.

VNS