Ministry of Construction proposes to "remove difficulties" in social housing credit
On May 30, the Ministry of Construction said it had just proposed that the Government consider adding VND3,000 billion to the Vietnam Bank for Social Policies to support people in buying social housing.
According to the Ministry of Construction, the implementation of social housing support policies in recent times has only reached about 30% of the set target despite the Prime Minister's strong instructions.
Specifically, the amount of budget capital allocated to the Social Policy Bank in the period of 2018-2020 is 1,262,069 billion VND/9,000 billion VND, meeting about 13% of the Social Policy Bank's requirements. In 2018, this Bank was only assigned 500 billion VND but up to this point it has not been disbursed.
According to regulations, with the allocated capital of 500 billion VND, the Social Policy Bank can only mobilize an additional 500 billion VND to implement the social housing support policy and only lend to households and individuals (project investors are not allowed to borrow this capital source). Meanwhile, the capital source to subsidize interest rates for credit institutions to lend to implement the social housing policy has not yet been arranged.
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| Currently, investors are very limited in building social housing. |
Meanwhile, the Government's VND30,000 billion credit package was fully disbursed by the end of December 2016. There are currently 206 social housing projects with a construction scale of about 168,700 apartments, total area of about 8,435,000 m2.2 are behind schedule or temporarily suspended, including some social housing project investors who want to convert to commercial housing projects; the number of social housing projects put into use recently is very limited.
In addition, the authorities in some localities have not paid attention to the development of social housing, investors have not proactively invested in building small-area, low-cost housing; the structure of housing supply is unbalanced, poor and low-income households do not have the ability and conditions to improve their housing.
In addition, the Ministry of Construction has received a number of opinions to promptly arrange support capital from the budget according to the provisions of the law on housing to continue lending to remove difficulties for stalled social housing projects, as well as soon create conditions for the poor, low-income people, and industrial park workers to borrow to buy, rent...
From now to 2020, strive to invest in construction of at least about 12.5 million m2Social housing floor for low-income earners and workers in industrial parks.
