Two pieces of news about the two credit packages for social housing and housing for factory workers were released at the national online conference on promoting the real estate market on February 17.

MOC suggested launching a credit package worth VND 110 trillion under refinancing (similar to the VND30 trillion package which was deployed in 2013-2016. Enterprises and buyers borrow money at the interest rate of 5 percent per annum). And commercial banks disburse this for social housing projects. Of the amount, 50 percent would be provided to project developers at preferential interest rates, while the remaining 50 percent would be for individual buyers.

Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong, said the VND 120 trillion credit package for social housing would be lent to project developers and buyers at interest rates 1.5-2 percent lower than the average commercial interest rates in the market.

A local newspaper quoted Ha Quang Hung, deputy director of the Housing and Real Estate Market Management Agency, as saying that the agency plans to stop proposing the VND110 trillion to focus on the VND120 trillion package suggested by SBV, because the latter exists and can be implemented immediately.

On March 2, the Information and Communication Division of the MOC’s Office said that the government will issue a resolution on developing the real estate market in a safe and healthy way, which will include content about the credit package for social housing.

After the government’s resolution is released, MOC will join forces with SBV to deploy the VND120 trillion package. The document doesn’t mention the proposal on stopping the VND 110 trillion package.

Talking on the phone with VietNamNet, MOC Deputy Minister Nguyen Van Sinh said MOC has not received any report about the stopping of the VND110 trillion package.

“The VND110 trillion package is awaiting the government’s consideration and decision,” Sinh said.

Regarding the credit package, at the conference on February 17, the SBV Governor said reserving a specific credit package for the real estate sector is a necessity to increase the supply of social housing and ease the imbalance in the real estate market. 

However, it is necessary to consider the sources of capital. The money supply for the long term may affect monetary policy regulation.

Hong Khanh