The Government proposes to implement a 120,000 billion VND credit package for social housing.

The Government has just issued Resolution No. 33/NQ-CP on a number of solutions to remove obstacles and promotereal estate marketsafe, healthy and sustainable development

The Resolution sets goals to promote the development of the real estate market, increase supply, and at the same time adjust the structure of real estate market products more reasonably, focusing on development.social housing, workers' housing, housing suitable for people's income...

The Resolution highlights the need to regularly and effectively monitor the market situation to promptly take appropriate measures and solutions to prevent the market from "overheating" or "freezing", the situation of spreading rumors, speculating to inflate real estate prices for profit, imbalance of supply and demand and ensure healthy operation according to market mechanisms.

The real estate market has changed, however, the market still faces many difficulties in terms of institutions, credit capital, bonds, etc. In the photo: Social housing in Gia Lam district. Photo: Vietnamnet

Pending National Assembly approvalHousing Law(amended), the Government develops and submits to the National Assembly for consideration and promulgation a "Resolution of the National Assembly on piloting a number of policies to promote the development of social housing" to immediately remove a number of specific difficulties and obstacles to create motivation for the development of social housing.

Including the urgent requirement to complete, promulgate and effectively implement the Project "Investing in the construction of at least 1 million social housing apartments for low-income people and industrial park workers in the period 2021-2030".

To support capital for social housing development, the Government proposes to implement a credit program of about VND 120,000 billion (equivalent to about 12% of capital demand to promote the implementation of the goal of completing at least 1 million social housing apartments and workers' housing in the 2021-2030 period) for investors and home buyers of social housing and workers' housing projects to borrow at an interest rate about 1.5-2% lower than the average medium- and long-term VND lending interest rate of state-owned commercial banks (including Agribank, BIDV, Vietcombank, Vietinbank) on the market in each period and eligible non-state commercial banks with each specific credit package.

Principal and interest debt extension for real estate businesses

To resolve difficulties for the real estate market in the coming time, the Government assigned the State Bank to consider directing credit institutions to review and classify real estate projects to have measures to handle debt extension, loan interest, and debt restructuring appropriately, in accordance with legal regulations, ensuring the safe operation of the banking system.

Efforts to reduce operating costs to create room to reduce lending interest rates for the economy, including home buyers and real estate projects, contributing to solving credit capital difficulties for businesses.

The State Bank is assigned by the Government to direct credit institutions to create favorable conditions for real estate project investors and home buyers to access credit capital; continue to allocate credit capital to real estate projects that meet legal conditions, have the ability to consume products and ensure debt repayment plans.

Uninhabited luxury villa in Duong Noi urban area in Hanoi. Photo: Thach Thao

Commercial banks need to assess the business production situation of enterprises, the potential of each project and the type of real estate segment such as affordable housing, social housing, housing for workers; industrial real estate, tourism, office to consider adjusting lending conditions without equating policies with risky projects.

The State Bank considers appropriate adjustments to risk coefficients for different real estate segments, reviews regulations related to lending and corporate bond investment to ensure consistency and compliance with the Government's corporate bond market development policy.

The Government assigned the Ministry of Finance to urgently evaluate, carefully review, propose amendments, supplements and completion of legal documents related to the issuance of corporate bonds, especially private issuance in the domestic market and offering corporate bonds to the international market.

In addition, there are harmonious, reasonable and effective measures and solutions to restructure bond debts, restructure interest rates, payment terms, payment conditions, in accordance with practical situations, in the spirit of harmonious benefits, difficulties and risks sharing; research on methods for real estate enterprises to negotiate and swap bond debts with assets, real estate, etc.

The Ministry of Finance ensures that capital mobilization activities of real estate businesses on the stock market are healthy and transparent; and controls to avoid speculation, manipulation, and price inflation.