Hanoi (VNA) 🐭– To facilitate the development of social housing amid many difficulties facing the work, real estate experts have proposed the Government and the Prime Minister agree with the Ministry of Construction (MoC)’s recommendation related to the credit package of 110 trillion VND.

Addressing a national teleconference held on February 17 to discuss ways of tackling obstacles and promoting the healthy and sustainable development of the real estate market, Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, said 2022 was the harshest year for the property market. Nearly 1,200 businesses were dissolved, up 38.7% year on year, and that the year 2023 is vital to real estate firms. He pointed out that facing shortages of cash and liquidity, a number of real estate companies have had to restructure investments, change business plans, and have stopped or delayed investment and construction activities. The development of social housing still has numerous problems, the MoC reported, elaborating that regulations on the selection of project investors still overlap one another and remain inconsistent with related laws. Also, incentives for investors are unattractive, apartments for rent in many projects are still vacant. There are also shortcomings in the identification of the groups entitled to and conditions to benefit from the social housing policy. Chau considered the credit package of 110 trillion VND as an important solution to re-finance the commercial banks assigned by the State Bank to provide concessional loans for buyers, renters, and investors of social housing and housing for workers of industrial parks. The package is meant to help with the development of 1 million social housing apartments during 2021 - 2030. Earlier, in its report to the Government and the National Assembly ahead of the conference, the MoC proposed the Government and the National Assembly reserve the credit package of 110 trillion VND, equivalent to some 10% of the capital demand in the 2022 - 2030 period, for commercial banks to provide loans for social and workers’ housing projects. This lending method is similar to the implementation of the 30 trillion VND package during the 2013 - 2026 period. Of the 110 trillion VND package, about half will be allocated as concessional loans to investors of social and workers’ housing projects while the rest to buyers and renters. In addition, the ministry also suggested the parliament soon issue a resolution on some pilot policies to remove bottlenecks and fuel the development of social housing, including the policies on land for social housing, the selection of and incentives for investors, selling and rental prices, the groups entitled to and conditions to benefit from the social housing policy. The MoC aims to complete all projects that have been launched and those with investment procedures being finalised by 2025, and continue to carry out new ones so as to build at least 1 million apartments of social housing for workers and low-income earners by 2030./.