"There will be other stimulus programmes to support home buyers after the disbursement of the VND30-trillion package ends, as it is a long-term task for the government," the minister Dung said. — Photo vietnamnet.vn

HA NOI  (VNS) — The VND30-trillion (US$1.3 billion) housing stimulus package's disbursement will end in April as more than 70 per cent of it has been handed out, Construction Minister Trinh Dinh Dung said.

Responding to a question by Huynh Thanh Lap, head of deputies from HCM City at the question and answer session of the National Assembly agenda, Dung said by the end of October, banks had given VND21.5 trillion ($955.5 million) in loans under the package, while the real disbursement was approximately VND13.5 trillion ($600 million) or 45 per cent of the total. Of this, about VND10.1 trillion ($449 million) was disbursed to individual home buyers, while the remaining was given to housing developers.

He said the disbursement was not up to expectations due to shortage of social and small commercial housing projects.

In addition, home buyers found it hard to access the loans as the package was not given from the state budget, but by commercial banks, thus making lending conditions tighter.

"The number of borrowers is large. However, not many home buyers were eligible to meet the banks' terms," he said.

For example, the Rice City Song Hong social housing project in Ha Noi's Long Bien District, built by BIC Company, had not been implemented even a year after its construction started.

Luc Minh Hoan, the company's deputy general director, said the project had not completed land clearance, though they had sent several documents to the district for help to resolve the issue.

Le Minh Hien, a resident of Hai Phong Port City, said he had not been able to buy an apartment under the housing package.

"There is only one social housing project in the city, which is quite far from our workplace," Hien said, adding that they did not have many options despite being eligible for the loan.

The ministry said they would continue to complete mechanisms related to investments, housing management and real estate trading, while pushing localities to review their projects to increase the housing supply for low and middle-income earners.

It would also help property investors to restructure their businesses to reduce housing prices and enhance the trust among home buyers.

"There will be other stimulus programmes to support home buyers after the disbursement of the VND30-trillion package ends, as it is a long-term task for the government," the minister said.

He said the Law on Housing stipulated that the government should have policies to support businesses participating in social housing projects, as well as for low-and-middle income earners at preferential interest rates. The State Bank of Viet Nam would ask credit institutions to join the programme. — VNS