"Sprint" for the 30,000 billion VND package

Investors and customers buying social housing are seizing the last opportunities when 90% of the VND30,000 billion credit package has been committed to lending.

Hai Phat Investment Joint Stock Company - the investor of The Vesta social housing project (Ha Dong district, Hanoi) and Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) have just officially signed a credit contract and cooperation to support customers in borrowing capital. Accordingly, VietinBank will finance the project with a total disbursement value of up to VND 900 billion, interest rate of 5%/year within 15 years.

Most likely, The Vesta will be one of the last social housing projects in Hanoi to enjoy preferential policies from the VND30,000 billion package, when the implementation period of the preferential credit package is almost over and the amount of money committed by commercial banks to lend is up to 90%. Previously, a series of social housing and low-cost commercial housing projects of investors such as Becamex, Viglacera, IDICO, Hoang Quan Real Estate, BIC Vietnam, AZ Land, Song Da Urban Development and Construction Investment Joint Stock Company, Xuan Mai Corp..., with tens of thousands of low-cost apartments, have been sold to customers, meeting the needs of low- and middle-income people in urban areas.

90% of the 30,000 billion VND credit package has been committed to by banks for lending.

According to Circular 11/2013/TT-NHNN of the State Bank, the maximum disbursement of the VND30,000 billion refinancing loan is 36 months from the effective date (June 1, 2013). Thus, the loans enjoying preferential policies from the VND30,000 billion credit package will end from May 31, 2016.

Assessing the impact of the VND30,000 billion package on the real estate market, Mr. Do Duc Dat, Director of Thu Do Investment and Trade Joint Stock Company - the investor of the Bac Co Nhue - Chem low-income housing project (Hanoi) said that the Government's timely support policy has helped businesses overcome the most difficult period when the real estate market froze and gradually developed stably. In the future, the Government should continue to have policies to support the development of social housing projects and low-cost commercial housing, because in reality, people with low and middle incomes in urban areas find it very difficult to accumulate to buy houses in normal commercial housing projects.

According to the Department of Housing and Real Estate Market Management (Ministry of Construction), the disbursement results of the VND30,000 billion credit package are encouraging after the Ministry of Construction requested functional agencies and local authorities to continue simplifying administrative procedures in confirming eligible borrowers of this credit package. The disbursement before or after May 31, 2016 depends on the progress of project construction.

“The deadline of May 31, 2016 is set by the State Bank, Resolution 02/2013/NQ-CP and Resolution 61/2014/NQ-CP of the Government do not set a deadline for this support package. The Ministry of Construction also does not set a deadline for disbursing this credit package. However, with the current disbursement progress, it is likely that the preferential credit package will end before May 31, 2016,” said the leader of the Department of Housing and Real Estate Market Management.

Regarding the fact that some banks have temporarily stopped lending preferential loans to customers to buy houses, at the regular Government press conference held on January 29, 2016, Deputy Governor of the State Bank Nguyen Thi Hong said that she would request the relevant units to specifically consider stopping the disbursement of the VND30,000 billion credit package. However, at the end of the year, in the State Bank's credit policy management, any credit institution that has met the credit growth target can temporarily stop for a while.

According to Baodautu