Signing of capital financing agreement between BIDV and Cotana Capital Company

No customers have accessed the 120,000 billion VND credit package yet

Implementing Resolution No. 33/NQ-CP (NQ33) dated March 11, 2023 of the Government on a number of solutions to remove obstacles and promote the safe, healthy and sustainable development of the real estate market, the State Bank of Vietnam (SBV) has implemented a VND 120,000 billion credit program to support investors and home buyers of social housing projects, worker housing projects, and projects to renovate and rebuild old apartments. Accordingly, banks will implement the social housing loan program with preferential interest rates 1.5 - 2% lower than the average medium and long-term VND lending interest rates of state-owned commercial banks such as Vietcombank, Agribank , Vietinbank, BIDV.

To bring this credit program into life, in Hue city, the State Bank of Vietnam, Region 9, has directed credit institutions to accelerate the implementation of the social housing loan program in the area. At the same time, it regularly coordinates with the city's Department of Construction to grasp the difficulties and obstacles in implementing the program. However, up to now, there has not been any social housing project in the area that meets the conditions for the City People's Committee to announce according to the provisions of the above resolution.

Many forums, seminars, and meetings have been held to resolve difficulties for this credit program, but the situation is still not optimistic. Data from the Department of Construction shows that, up to now, the locality has only approved investment in 9 social housing projects, of which 4 independent social housing projects have been completed and put into use with 1,773 apartments; 5 projects use 20% of the land fund in commercial housing projects, but currently only 1 project is being implemented. This partly shows that the supply of social housing projects is not really abundant.

The Bank for Social Policies has effectively implemented the social housing program.

Expand the audience

In addition to the VND120,000 billion credit package being implemented by banks, the Vietnam Bank for Social Policies is also implementing a social housing loan program. Accordingly, in the area, there are more than 1,000 customers borrowing capital from this bank's social housing program to build and repair houses.

In early 2025, after Prime Minister Pham Minh Chinh requested banks to study and implement a preferential credit package specifically for young people, banks also simultaneously implemented housing programs for young people. In particular, Asia Commercial Bank (ACB) implemented the "First Home" program for young people with a loan term of up to 30 years, with a fixed interest rate of only 5.5%/year for the first 5 years.

The State Bank also requires commercial banks to promote the social housing loan program, especially for young people under 35 years old, with preferential interest rates of only 1-3%/year, lower than the normal rate, to increase housing access for this group. The resources to implement this credit package come from the capital of 9 banks registered to participate in the social housing program under Resolution 33. Every 6 months, the State Bank will announce the preferential loan interest rate for the banks participating in the above program. Specifically, in the period from July 1, 2025 to December 31, 2025, the loan interest rate for customers who are home buyers at the project is 5.9%/year; the loan interest rate for customers who are project investors is 6.4%/year.

According to the leader of the Vietnam Bank for Agriculture and Rural Development (Agribank) Hue branch, Agribank is implementing a preferential loan program to buy social housing for individual customers who are young people under 35 years old with a scale of 10,000 billion VND, the maximum preferential interest rate application period is 15 years from the date of disbursement.

Although it is considered quite open compared to previous credit programs, the reality is that the number of social housing projects being implemented in the area is quite modest, making it difficult to meet the housing needs of young people under 35 years old.

Mr. Nguyen Hoang Tuan (formerly Phuong Duc Ward, now Thuan Hoa Ward), Hue City, confided that if social housing is understood to include housing in social housing projects and housing invested and built by low-income people, it will be "easier to breathe" for many people when accessing housing investment credit. Because in reality, not everyone wants to live in high-rise apartments. In addition, in addition to young people under 35 years old, it is also necessary to expand the age group that benefits from preferential loan packages so that those in need have more opportunities to own social housing.

From the actual implementation of the credit packages of 120,000 billion VND and 30,000 billion VND (implemented in the period of 2013-2016) to support the development of social housing, it can be seen that refinancing for commercial banks with low interest rates to support social housing loans such as the credit package of 30,000 billion VND is necessary. In addition, the subjects should not be limited to the group of home buyers in social housing projects but should be expanded to include the needs of building and repairing houses, which will bring more positive results. Only then will the policy truly "touch" the needs of the people.

Article and photos: HOANG ANH

Source: https://huengaynay.vn/kinh-te/von-vay-nha-o-xa-hoi-can-cham-den-nhu-cau-155869.html