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According to experts and businesses, the policy of supporting businesses to invest and people to access social housing is correct.
The Garden Social Housing, No. 295 Tan Ky Tan Quy Street, Tan Son Nhi Ward, Tan Phu District, Ho Chi Minh City
However, if we only stop at interest rate support (and it is not attractive enough) without accompanying drastic policies, the policy will be difficult to put into practice, businesses will not be interested in borrowing, and people will still wait to buy a house.
According to the Ministry of Construction, up to now, 20 provinces and cities have announced 52 projects eligible to borrow the 120,000 billion VND credit package with a loan demand of about 25,884 billion VND.
The provinces and cities that have announced the list of eligible borrowers from the VND120,000 billion credit package include: Ba Ria - Vung Tau, Tra Vinh, Bac Giang, Tay Ninh, Ho Chi Minh City, Da Nang, Binh Dinh, An Giang, Phu Tho, Bac Ninh, Hau Giang, Binh Duong, Lang Son, Lam Dong, Hanoi, Thai Binh, Hai Phong, Hai Duong, Kien Giang, Binh Thuan.
Of which, there are 49 social housing projects with a loan demand of VND 24,655 billion, three projects to renovate and rebuild old apartments with a loan demand of VND 1,229 billion.
In addition, a number of social housing projects in localities have received capital disbursement from the VND120,000 billion credit package, specifically as follows: Minh Phuong Company (Phu Tho) received VND23.7 billion, Kinh Bac Company (Bac Ninh) received VND46 billion, and the joint venture between Hanoi Housing Joint Stock Company No. 6 and Global Consulting Joint Stock Company received VND13.4 billion.
Notably, the State Bank of Vietnam, Ho Chi Minh City branch, said that implementing the VND120,000 billion credit program for social housing, housing for workers, and renovation and reconstruction of old apartments according to Resolution 33, currently in the city there are six projects announced by the Ho Chi Minh City People's Committee according to the list (phase 1).
One of these projects has been approved for a loan by BIDV branch, but the investor has not yet requested to disburse the loan. For the remaining five projects, the State Bank of Vietnam, Ho Chi Minh City branch, said that the investors are in the process of working with commercial banks to implement this credit package.
Deputy Governor of the State Bank Dao Minh Tu said that recently the State Bank has directed four state-owned commercial banks to implement a credit program of 120,000 billion VND for lending to social housing, workers' housing, and renovation of old apartments.
Mr. Tu affirmed that the four state-owned commercial banks do not lack money and are ready to lend, but do not have social housing projects to lend to.
From the mobilized capital of four state-owned commercial banks, up to now, projects have lent 105 billion VND with interest rates 1.5 - 2% lower per year than the average lending rate on the market.
Of which, BIDV has disbursed about 23.7 billion VND for a social housing project in Phu Tho province, Agribank has lent 59 billion VND to two projects in Bac Ninh and Quang Ninh...
According to Mr. Tu, banks are waiting for the disbursement of loan packages for this program. In the past, four state-owned commercial banks - Vietcombank, BIDV, VietinBank, Agribank - have always had capital ready to disburse for this program.
Banks do not lack capital, lending interest rates follow the market, so lending interest rates will decrease in the future when market interest rates are falling.
Regarding the slow disbursement of this package, we need to consider which stage is responsible. There are social housing projects that have been approved but do not have investors yet, so who will disburse to?
There are projects that have investors but they have not yet reached the point of needing capital so they have not borrowed. In fact, there are businesses that have invested but have not yet reached the point of needing capital. That is not to mention whether the business meets the conditions for borrowing capital or not, the source of capital and the lending interest rate are not the issues that slow down the disbursement of the 120,000 billion VND program but are related to other stages.
In a report on banking issues recently sent to National Assembly delegates, the Government pointed out that the reason is that the procedures for building social housing projects are complicated and time-consuming.
Many localities are still in the process of compiling project lists and investor needs, so they have not yet announced the list of loan projects. On the other hand, customers' income has decreased due to the impact of the economic situation and difficult production and business.
Regarding real estate loans, in the first seven months of this year, they increased by only 4.99%, of which real estate business loans increased by nearly 19%. This is a very high growth rate, more than 4 times higher than the general credit growth rate.
However, outstanding real estate consumer loans (accounting for 65% of outstanding real estate credit) decreased by 1.36%. This shows that credit is focusing on the supply side of the market, while demand for credit to buy real estate for consumption purposes is decreasing.
Workers build a social housing area for workers in Thanh My Loi ward, Thu Duc city (Ho Chi Minh city)
The biggest problem with the disbursement of the VND120 trillion credit package is that there are no projects to disburse capital. If localities do not approve projects, banks cannot disburse capital.
For businesses, the first thing is to solve the employment problem. If the interest rate is 8% or higher, businesses will calculate it into the project investment cost. The biggest bottleneck is still the lack of projects eligible for loans.
GrandfatherNGUYEN CHI THANH(Vice President of Vietnam Real Estate Brokers Association)
This VND120,000 billion credit package is essentially not a preferential social housing credit package but only a commercial credit package with an interest rate 1.5 - 2% lower than the normal lending interest rate for investors and home buyers in social housing projects, worker housing, and housing projects for apartment building renovation and reconstruction.
Meanwhile, preferential credit packages for social housing often have low interest rates for investors and buyers, and social housing rentals are regulated at 50% of the commercial loan interest rate, as the current preferential interest rate is 4.8 - 5%/year and this preferential interest rate is determined annually.
The preferential loan term for the social housing credit package is also long-term, usually up to 25 years for buyers and renters of social housing and five years for investors of social housing projects. Meanwhile, the current VND120,000 billion package, although the interest rate is lower than the average interest rate, is still high compared to the financial capacity of buyers.
In addition, the preferential period of the VND120,000 billion credit package for home buyers is only 5 years, which is too short. In particular, the preferential period for investors of social housing projects, worker housing projects, and projects to renovate and rebuild apartment buildings within 3 years is only suitable for medium-scale projects but not suitable for large-scale projects.
Buyers of social housing and workers' housing are "not interested" in borrowing from the VND120,000 billion credit package due to high interest rates, beyond the tolerance of low-income urban people.
In addition, the VND120,000 billion credit package stipulates that borrowers who want to buy or rent-purchase social housing can only borrow preferential loans once to buy a house. If they have borrowed the VND120,000 billion credit package with an interest rate of about 8.2%/year, the buyer will lose the opportunity to borrow preferential social housing credit according to the current housing law with an interest rate of 4.8 - 5%/year for a maximum period of 25 years.
If there is a supply of social housing, buyers and renters of social housing will certainly choose to borrow preferentially at 4.8%/year, so the VND120,000 billion credit package is at risk of being "unsold". Currently, there is a mentality among low-income urban people to wait until there is a preferential credit policy for social housing and wait until there is a new supply of social housing to borrow preferentially.
GrandfatherLE HOANG CHAU(Chairman of Ho Chi Minh City Real Estate Association)
There are many reasons for the slow disbursement of the 120,000 billion VND preferential credit package, the first is the lack of supply as stated by the Ministry of Construction and the State Bank.
Second, the lending interest rate of the 120,000 billion VND package, even after support, is still high and not attractive to people and businesses.
But this is also an effort of commercial banks because this is the banks' money, not the budget's money. Banks have voluntarily reduced lending interest rates by 1.5 - 2% compared to the average market interest rate.
To be more sustainable, to have truly preferential interest rates, more suitable for home buyers, businesses building social housing, and renovating old apartments, the Government needs to establish a social housing development fund.
The interest rate on loans from the social housing development fund is usually half of the average commercial lending rate on the market, which is appropriate. This fund needs to mobilize from many different sources and the budget capital plays the role of seed capital as Korea and Singapore have done.
Third, the procedures for social housing are still very complicated for both social housing project investors and home buyers. This has been identified and the Government is reviewing to amend the Housing Law and the Real Estate Business Law accordingly.
TSCAN VAN LUC(Chief Economist of BIDV Bank)
.jpg "Hai Duong's agricultural, forestry and fishery value increased by 7.51% in the first quarter.")
