Ministry of Construction gives reasons for slow disbursement of 120,000 billion VND package

This explanation was given by the Ministry of Construction in response to a petition from voters of Bac Giang province sent to the Government.

Accordingly, the Ministry of Construction explained that the disbursement of the VND120,000 billion package is still slow mainly because the current supply of social housing is limited. Many localities have projects but have not completed all procedures to meet loan conditions. Along with that, this agency assessed that the interest rate of the preferential loan package is still high, while the loan period is short, so it has not attracted businesses and people to borrow capital.

In addition to the above reasons, at some events in the last quarter of last year, representatives of the State Bank also said that some social housing projects were not really attractive to home buyers due to factors such as price, location, planning, infrastructure, etc. At the same time, the conditions for enjoying preferential policies on social housing were not suitable in many points and needed to be adjusted.

Previously, the proposal of Bac Giang voters stated that the preferential credit package of 120,000 billion VND for social housing and worker housing projects is very necessary and provides good support for businesses and home buyers. However, in reality, businesses and home buyers find it difficult to access this source of capital due to complicated procedures, long application appraisal time, and high interest rates (about 8.2%/year), leading to slow disbursement of this support package.

According to data released by the Ministry of Construction in a recent report, as of early January 2024, the 120,000 billion VND package had only disbursed nearly 180 billion for a number of social housing projects out of a total of 1,095 billion VND signed loan contracts.

Voters in Bac Giang province requested the Prime Minister to direct the Ministry of Construction and the State Bank to guide and urge implementation, reduce procedures, and shorten the time for document appraisal so that businesses and people can soon access loan capital.

Faced with this situation, to reduce procedures and shorten the time for document appraisal, the Ministry of Construction said it has authorized the provincial People's Committee to create a list of projects to be publicly announced on the province's electronic information portal. Currently, 27 provinces have announced a list of 63 projects eligible to borrow the VND120,000 billion package with a demand of nearly VND28,000 billion.

In the coming time, the Ministry of Construction affirmed that it will continue to coordinate with the State Bank, ministries, and localities to effectively implement the VND120,000 billion package, contributing to the implementation of the project to build at least 1 million social housing units by 2030. This agency will report to the Government on solutions to help investors of social housing, workers' housing, and home buyers access credit packages with low interest rates and longer loan terms.

Last year, the country had 28 completed projects with more than 13,800 units, 16 projects were licensed and started construction. In 2024, 63 provinces and cities registered to complete 108 projects, with a scale of more than 47,500 units.