It's difficult to qualify for the 30 trillion VND home loan package.

(Baonghean) On May 15, 2013, the State Bank of Vietnam issued Circular No. 11/2013/TT-NHNN regulating housing support loans under Resolution 02/NQ-CP (effective from June 1, 2013). On the same day, the Ministry of Construction also issued Circular No. 07/2013 guiding the identification of eligible borrowers for housing support loans under Resolution 02. Accordingly, the State Bank of Vietnam disbursed approximately VND 30,000 billion in refinancing loans to banks based on their outstanding loan balances to customers, enabling banks to provide preferential loans for home purchases.

The banks providing loans under this Circular include: Vietnam Bank for Agriculture and Rural Development, Vietnam Investment and Development Bank, Vietnam Commercial and Industrial Bank, Vietnam Foreign Trade Bank, and Mekong Delta Housing Development Bank. For individual customers borrowing to buy, rent, or lease-purchase social housing or commercial housing with an area smaller than 70 m2 and a selling price below 15 million VND/m2, they must have a purchase, rental, or lease-purchase contract for social housing or commercial housing with the investor; the purpose of the loan must be to buy or lease-purchase social housing or commercial housing as stipulated in this Circular; and they must have sufficient minimum capital to participate in the loan plan (20%).

Initially, the information attracted much attention from individuals and businesses, who hoped it would "rescue" the real estate market. However, further investigation revealed that loans were only available for purchasing social housing or commercial housing with an area under 70 m2. Many people wanted to borrow to buy land or higher-priced apartments but found it difficult to obtain loans. Meanwhile, the social housing fund in Nghe An currently has run out. Only one company, Tecco Investment and Application of New Technology Joint Stock Company, implemented this program, but it has already sold out. As for commercial housing, it hasn't yet been converted to smaller units to qualify for the preferential package.

It has been learned that in the Nghe An real estate market, the focus is not on low-income housing but on land and commercial housing. Meanwhile, low-income housing is selling like hotcakes. Some banks, such as VIB and Vietcombank, also have plans to provide home loans, but the high interest rates make it difficult for people to access. The circular has opened a path for commercial housing projects, but will converting apartments be easy and compatible with the overall urban area, which was designed and constructed according to the plan for high-income earners?

For example, the currently unsold housing projects in Vinh City are all located in highly profitable, high-priced areas, and the fees charged to residents are also high. It's not simple to subdivide these apartments. If low-income earners could afford to buy a house, would they be able to cover the costs of security, electricity, water, parking, and common areas like hallways and staircases? Furthermore, would the urban area maintain its proper planning?

The real estate market needs to be able to circulate all types of properties, and for all stakeholders to be able to "release their energy," in order to become vibrant and recover. "Rescuing" a type of property where demand exceeds supply, like in Nghe An, will hardly benefit the people.

Pearl