PM urges special credit support for feasible realty projects

The State Bank of Vietnam should introduce special credit support packages for real estate projects that are feasible and making good progress, said Prime Minister Pham Minh Chinh.
A social housing project in Da Nang. (Photo: VNA)
A social housing project in Da Nang. (Photo: VNA)

In his official dispatch signed on October 24, the Government leader called for the drastic implementation of measures to develop the real estate market in a safe, healthy, and sustainable manner.

He urged relevant ministries, agencies, and local authorities to heighten accountability and adopt a proactive attitude.

Recognising that legal constraints and credit access continue to hinder the growth of the real estate market, PM Chinh requested the Ministry of Construction to expedite the drafting of the amended Law on Housing and Law on Real Estate Business. He also emphasised the importance of refining the legal framework for the execution of commercial housing projects, social housing projects, and new urban area developments to ensure coherence.

The PM highlighted the importance of speeding up a project on developing at least 1 million social housing apartments for low-income individuals and workers in the 2021-30 period.

In terms of credit, the PM encouraged banks to boost lending for real estate and devise strategies to reduce interest rates. Banks must roll out unique credit support policies for property projects that demonstrate high feasibility and are well underway, he noted.

He also emphasised the need to expedite the disbursement of the 120 trillion VND (4.88 billion USD) credit package designated for social housing development.

The Ministry of Natural Resources and Environment has been tasked with finalising the land pricing method and presenting it for review within this month.

Since the beginning of this year, construction on 10 social housing projects and housing initiatives for workers have commenced, anticipated to provide a total of 19,853 apartments. Twenty provinces and cities have unveiled a list of 52 projects eligible for the 120 trillion VND credit package, which have a combined borrowing requirement of over 25.88 trillion VND.