At the monthly Government media conference held on March 03, 2023 afternoon, in his answer to a correspondent’s question, Mr. Pham Thanh Ha, Deputy Governor of the State Bank of Vietnam (SBV), shared that, based on the recently issued Government's Resolution on removing the difficulties and promoting the real estate market development, the SBV plans to implement exactly as directed by the Government in order to remove the difficulties for this market. Specifically, four state-owned commercial banks will implement the VND 120 trillion credit package, with lower lending interest rates (between 1.5 to 2% lower) than the common market rates.
SBV Deputy Governor Pham Thanh Ha speaks at the media conference.
According to the SBV Deputy Governor, there have been many reasons for the difficulties of the real estate market, such as the legal issues, the imbalance between the supply and the demand of different market segments, etc. With regard to the issue of capital access, there are many financial sources for the real estate market, and the bank credit is just one of them.
Implementing the Prime Minister’s directions tasking the SBV to prioritize the credit resources for social housing and workers’ housing projects, the SBV has been collaborating with the Ministry of Construction to propose a concessional credit package for these two housing segments. Four stated-owned commercial banks (Vietcombank, Agribank, BIDV, and VietinBank) have agreed to a VND 120 trillion credit package (each bank shall arrange VND 30 trillion). The size of this package may increase in case more commercial banks can participate.
The lending interest rates applied by the banks for this package are expected to be lower than the common market rates (by 1.5 to 2%) in order to address the difficulties of the real estate market.
Right after the Government’s Conference on removing difficulties for the real estate market, the Ministry of Construction had started working on a draft Resolution of the Government on removing the difficulties and promoting the real estate market development.
Mr. Tran Van Son, Minister, Chairman of the Government Office, added that the VND 120 trillion credit package would focus on the social housing and workers’ housing projects in the industrial parks and the economic zones. Also according to Mr. Tran Van Son, in order to implement the goal of 1 million social housing units in the coming time, the social housing segment will benefit from a number of incentive policies of the State. The lending interest rates will be lower than the common market rates (by 1,5 to 2%), and the land use fees will also be exempted, etc.
In addition, Mr. Tran Van Son informed that the Government will issue a Resolution on removing the difficulties and promoting the safe and healthy development of the real estate market in the near future.
LK