Timely to resolve obstacles and accelerate disbursement of the 120 trillion VND program

On the morning of March 12, in Hanoi, the State Bank of Vietnam held an online conference with 63 provinces and cities to boost the implementation of the 120 trillion VND program for social housing loans, worker housing, renovation projects, and reconstruction of apartment buildings. Mr. Dao Minh Tu, Deputy Governor of the State Bank of Vietnam, Mr. Nguyen Van Sinh, Deputy Minister of Construction co-chaired the conference.

At the Binh Duong connection bridgepoint, Mr. Vo Dinh Phong, Director of the State Bank of Vietnam - Binh Duong Branch, attended. Reporting at the conference revealed that by the end of 2023, the real estate credit balance reached 2,890 trillion VND, accounting for 23% of the total credit balance of the economy. Notably, credit is flowing strongly into the commercial housing and social housing segments. However, the 120,000 billion VND program for social housing loans is a source of capital for commercial banks. The banking sector has many solutions for this credit package, but so far, the outstanding loan balance has been very low.

The cause is due to many obstacles regarding loan conditions, preferential mechanisms, loan recipients, and interest rates that are not suitable for the market situation. In Binh Duong province alone, as of June 2023, there are 4 projects announced by the provincial People's Committee with a total loan demand of 1.181 trillion VND, but no outstanding loan balance has arisen to date.

Statement at the conference, Mr. Dao Minh Tu proposed that ministries, sectors, and localities should consider implementing the project to build 1 million Social housing units for low-income earners, industrial zone workers as an important political task, ensuring social security, meeting legitimate needs of the people.

The State Bank branches in provinces and centrally-run cities continue to coordinate with local authorities to promptly resolve legal obstacles related to beneficiaries of policies; effectively implement relevant policies and laws to accelerate the disbursement of the 120 trillion VND stimulus package in the near future.

Reported by Thanh Hong – Translated by Vi Bao

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