The Ministry of Construction has sent to the State Bank of Viet Nam the list of social and workers’ housing projects and old apartment buildings set for renovation whose developers are entitled to subsidised loans under the Government’s Decree 31/2022/ND-CP.

According to the decree, the developers will get a subsidy of 2 percentage points on the interest they have to pay when borrowing from banks.

Based on local authorities’ suggestions and its own review of the decree criteria, the ministry has approved six projects in HCM City and five in Binh Dinh for the subsidy.

The 11 projects are estimated to cost VND9.65 trillion (US$411.6 million), with the developers borrowing VND4.3 trillion ($183.4 million).

The six HCM City projects include social housing in Thu Duc City’s Long Truong Ward with a loan of VND365 billion to build 558 apartments and in Ly Thuong Kiet Street in District 10 with a loan of VND570 billion and 1,245 apartments, and a rental workers’ housing project in Thu Duc City’s Thanh My Loi Ward with a loan of VND700 billion and 1,040 apartments.

Besides, new apartments will be built to replace decrepit ones at 23 Ly Tu Trong and 128 Hai Ba Trung in District 1 and at 350 Hoang Van Thu in Tan Binh District, with their developers eligible for loans of over VND1 trillion.

Previously, in the first phase of the programme, the ministry announced four social and workers’ housing projects in Lao Cai, Hoa Binh, Tay Ninh, and Tien Giang provinces whose developers are entitled to the subsidised loans.

Issued in March this year, Decree 31 is part of a COVID economic recovery master programme. — VNS