A social housing project under construction in Long Khánh City, Đồng Nai Province. — VNA/VNS Photo Công Phong

The Ministry of Construction has urged the State Bank of Việt Nam to study a new credit package for low-income home buyers with preferential interest rate 3-5 per cent lower than lending rates provided by commercial banks.

The proposal was noted in the ministry’s report on the on-going drive to develop at least a million social housing apartment units by 2030.

The lower-rate preferential credit would be over terms of 10-15 years.

The Ministry of Construction said that the new credit package will help low-income earners to buy houses, with evidence they are not buying homes. The disbursement of the VNĐ120 trillion (US$4.7 billion) social housing credit package is stagnant; after a year in operation, less than 1 per cent, or VNĐ1.144 trillion, has been distributed.

The VNĐ120 trillion support package provides preferential loans from commercial banks to social housing developers and buyers at rates 1.5-2 per cent lower than the normal lending rates.

In early 2023, the Ministry of Construction had proposed a credit package worth VNĐ110 trillion to promote social housing development, similar to the VNĐ30 trillion package introduced in June 2013.

That proposal was rejected and the VNĐ120 trillion credit package implemented instead.

Statistics from the Ministry of Construction showed that to date, 30 localities have announced 72 projects eligible for the VNĐ120 trillion package.

More than 500 social housing projects are being built across Việt Nam, 75 of which have been completed, a total of nearly 40,000 apartments. — VNS