Why is the disbursement of the 120,000 billion VND package for building social housing still slow?

Notable information is the progress of disbursement of the 120,000 billion VND package. The Ministry of Construction said that up to now, 1,344 billion VND has been disbursed, including 1,295 billion VND for investors and 49 billion VND for home buyers.

The Ministry of Construction explained that the disbursement of the 120,000 billion VND credit package is still slow because there are few participating banks. Currently, in addition to the 4 state-owned banks (Vietcombank, BIDV, Vietinbank, Agribank), there are only 4 other commercial banks (TPBank, VPBank, MBBank, Techcombank) participating in the program.

In addition, the current interest rate of this credit package is still high, of which 8%/year for investors and 7.5% for home buyers. The short preferential period of 3 years for investors and 5 years for home buyers has not really attracted borrowers. Therefore, the Ministry of Construction proposed that the State Bank direct and encourage other banks to participate in the 120,000 billion VND package and consider reducing interest rates and extending the loan term of this credit package.

In the report sent to the Prime Minister, the Ministry of Construction also pointed out a number of remaining problems such as: Enterprises investing in the construction of social housing face difficulties in accessing land such as land allocation planning and publicizing investment attraction projects.

Some projects have approved investment policies and selected investors, but construction implementation is still slow. Some businesses still have difficulties with capital sources.

From 2021 to present, the whole country has 619 social housing projects implemented with a scale of more than 560,000 units. However, only 79 social housing projects have been completed, 128 social housing projects have started construction and 412 social housing projects have been approved for investment.

The leading localities in building social housing are: Bac Ninh, Hanoi, Bac Giang, Khanh Hoa, Thanh Hoa, Tay Ninh, Binh Duong...

Besides, some localities have high demand for social housing but no completed projects such as Thai Nguyen, Ninh Binh, Nam Dinh, Thua Thien Hue, Vinh Long, Ben Tre, Bac Lieu, Ca Mau...

The Ministry of Construction also said that the total number of social housing apartments started and completed to date has reached about 35.6% of the project target of building 1 million social housing units by 2025. The planning and arrangement of land fund for social housing development is about 9,757 hectares (as of the end of August).

Many localities have paid attention to and allocated land funds to build social housing in convenient locations, near urban centers and industrial parks, meeting technical and social infrastructure requirements, such as: Dong Nai 1,064 hectares, Quang Ninh 666 hectares, Hai Phong 644 hectares, Binh Duong 408 hectares...