Only 3 state-owned enterprises were recommended to borrow from the 30 trillion VND package.

Speaking to the press on the afternoon of July 11, Do Duc Duy, Chief of the Office of the Ministry of Construction, confirmed that only three state-owned enterprises were recommended to borrow from the 30,000 billion VND support package.

(Illustrative photo: Tuan Anh/VNA)

Specifically, the list of projects proposed by the Ministry of Construction for initial loan approval includes only four projects from state-owned enterprises under three entities: the Vietnam Glass and Ceramic Construction Corporation (Viglacera), the No. 1 Construction Materials Corporation (FICO), and the Industrial Park and Urban Development Company Limited (IDICO).

The remaining projects belong to private enterprises, joint-stock companies without state capital, and joint-stock companies with state capital but where the state does not hold a controlling stake. This information has dispelled doubts about the 30 trillion VND social housing support package being "concentrated" on state-owned enterprises.

According to Mr. Duy, after reviewing and evaluating the dossiers of projects registered by localities and businesses, the Ministry of Construction has proposed an initial list of 30 social housing construction projects and commercial housing projects converted to social housing for the State Bank of Vietnam and commercial joint-stock banks to consider and provide loans from the 30,000 billion VND package.

These include 15 social housing construction investment projects that had registered for investment loans before the Government issued Resolution 02; 12 projects that registered for loans after the issuance of Resolution 02; and three projects that converted their function to social housing.

Hai Phong Construction and Investment Development Joint Stock Company (CDI) - the An Dong apartment complex project - one of two projects in Hai Phong that received loans from this preferential credit package, said that currently 10 of CDI's customers have completed the procedures for preferential loans, of which the bank has completed the appraisal of two applications and will disburse funds in the near future.

CDI General Director Nguyen Ngoc Thanh commented that this is the first time households have received preferential interest rate loans to buy houses. They feel secure, confident, and see that the policies are truly aimed at the poor. If customers fully utilize this support package, the real estate market will warm up, creating new jobs and boosting the consumption of construction materials such as iron, steel, and cement…

The same benefits also extend to businesses; the support package not only helps them sell their products but also helps them access low-interest capital to implement subsequent projects, Mr. Thanh expects.

In addition, the Bank for Investment and Development (BIDV) confirmed that as of July 3rd, it had provided loans to two businesses. Specifically, Vicoland Construction and Development Group Joint Stock Company received a loan of VND 117.7 billion to invest in a social housing project in Thua Thien-Hue province; and Hoang Quan Real Estate Consulting and Trading Services Joint Stock Company received a loan of VND 540 billion to invest in a project converting existing properties into social housing in Ho Chi Minh City.

In addition, many projects on the list proposed by the Ministry of Construction are being urgently assessed by banks before a decision on disbursement can be made.

Deputy Minister of Construction Nguyen Tran Nam assessed the 30,000 billion VND credit support package as a long-term program, targeting the majority of people with low and middle incomes and a real need for housing. Looking at the demand for social housing, the impact of this support package will not be limited to just 30,000 billion VND.

Under current conditions, approximately 30% of the capital will be lent to investors to create housing units for social housing projects that are already underway but lacking resources; the remainder will be lent to the public for a 10-year term at a low interest rate (6% or lower) if adjusted.

In addition to the five banks participating in the support package, other commercial banks will also have to compete by lowering interest rates; construction and building materials manufacturing businesses will also provide capital and goods for the projects.

Currently, nearly 10,000 households nationwide are living in low-income housing complexes. In the near future, hundreds of hectares of land with complete infrastructure will be planned for social housing.

Initially, businesses must allocate 20% of the land in each project for social housing construction. The Ministry of Construction is currently evaluating several commercial housing projects that are being converted into social housing and will, within the next two weeks, propose a second list to the State Bank of Vietnam and commercial joint-stock banks for consideration of loans.

Specifically, the Ministry of Construction and the State Bank of Vietnam will hold a meeting to address procedural difficulties in order to expedite the disbursement of funds to individual customers purchasing homes.

According to (VNA) - LT