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Friday, June 21, 2024

VND120-trillion housing credit package faces slow disbursement

By Viet Dung

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HCMC – The VND120-trillion credit package for social housing development is facing sluggish disbursement, with just VND105 billion disbursed to date.

The slow progress can be attributed to several factors, including unprepared localities, regulatory misalignment with practical needs, and limited social housing supply. During the 15th National Assembly session on November 6, NA deputies expressed concerns about the lower-than-expected outcome of the package.

The State Bank of Vietnam (SBV) governor, Nguyen Thi Hong, explained that the goal of the package is to construct one million social homes within a decade, following the guidelines set by the Ministry of Construction. The package relies on financial resources from banks and offers favorable interest rates through participating banks.

The SBV has issued guidelines for banks and encouraged local authorities to announce eligible projects.

Hong acknowledged that some disbursement challenges stem from a restricted supply of social housing, stringent requirements for borrowers, and the long-term nature of the package. She urged local authorities to expedite project announcements and increase public awareness of the package.

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