HCMC – The Ministry of Construction has urged the State Bank of Vietnam to extend loan terms and increase credit limits to accelerate the development of social housing projects.
Under the Housing Law, developers are offered incentives such as tax breaks, a 10% profit margin, and exemptions on business area costs. Despite these measures, only 37 out of 63 provinces have submitted or announced lists of eligible projects. Moreover, just VND2.36 trillion of the VND120-trillion Government fund for social housing development has been disbursed, according to the Vietnam News Agency.
The Government has also launched a VND30-trillion credit package, with funding equally sourced from state bond proceeds and local budgets. The Vietnam Bank for Social Policies (VBSP) is tasked with distributing loans to support home purchases, rentals, construction, or renovations.
However, housing prices remain high compared to workers’ incomes, and accessing loans is challenging due to complex procedures, high interest rates, and inconsistent funding. The Ministry of Construction has called on local authorities to allocate land for social housing projects and comply with land-use regulations in industrial zones and commercial housing developments.
To improve access to affordable housing, the ministry has proposed simplifying loan application procedures and ensuring a stable funding source.
