HCMC – Vietnam’s central bank is seeking feedback on a proposal to cut interest rates for social housing loans by three to five percentage points to increase access to affordable housing.
Currently, only VND49 billion out of a VND120 trillion credit package for social housing has been disbursed to home buyers.
The State Bank of Vietnam is consulting with ministries and agencies on a draft resolution to amend the VND120 trillion program under Resolution 33/NQ-CP. The proposal includes reducing loan rates for buyers by three to five percentage points while maintaining the current support rate of 1.5-2 percentage points for investors.
The Ministry of Construction confirmed its support for the proposal at a press conference in Hanoi on August 5. This move aligns with government efforts to ease difficulties and promote social housing.
So far, 34 out of 63 provinces have listed 78 eligible projects for the credit package. Banks have disbursed over VND1.3 trillion, with VND1.295 billion going to investors in 12 projects and VND49 billion to home buyers in five projects.
The Ministry of Construction has also urged the central bank to extend loan terms to 10-15 years and lower interest rates by three to five percentage points compared to commercial bank rates to support low-income earners and industrial park workers.
