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Vietnam to launch $1.17bn loan package for social housing buyers | Tuoi Tre News JavaScript is off. Please enable to view full site. PoliticsSocietyBusinessLifestyleFeaturesInternationalSportsCity DiaryEducationMedia Vietnam to launch $1.17bn loan package for social housing buyers Saturday, March 08, 2025, 10:34 GMT+7 A social housing project under construction in the Kim Chung New Urban Area, Dong Anh District, Hanoi. Photo: B. Ngoc / Tuoi Tre The Vietnamese government is set to introduce a new VND30-trillion loan package to support social housing buyers and renters, as well as households in need of home construction, renovation, and repairs. Deputy Prime Minister Tran Hong Ha has directed the Ministry of Construction to work with the State Bank of Vietnam and other relevant agencies to quickly implement the preferential credit package. The funds will be allocated from the state budget and disbursed through the Vietnam Bank for Social Policies. The initiative follows challenges with the existing VND120-trillion preferential credit program, which was recently increased to VND145 trillion . Despite its expansion, the program has struggled with disbursement due to its reliance on commercial bank funding rather than direct government subsidies. Many potential borrowers have been discouraged by the program’s adjustable interest rates, which are revised every six months, creating uncertainty. In a report submitted to the prime minister ahead of a March 6 social housing conference, the Ministry of Construction noted that as of late February, 37 provincial and municipal People’s Committees had identified 90 social housing projects eligible for the VND120-trillion credit program. However, total disbursement from the program has remained low, reaching only VND2.85 trillion . Of this, VND2.58 trillion has been allocated to investors of 20 social housing projects, while VND265 billion has been provided to homebuyers. Experts cite multiple factors behind the slow disbursement of funds. The reliance on commercial bank capital has made it difficult to significantly lower interest rates, limiting access to affordable loans. The shortage of social housing projects has further slowed the process, as banks struggle to find eligible developments to finance. With the new state-funded loan package, the government aims to overcome these obstacles and accelerate social housing development, ensuring that financing is more accessible for both buyers and investors. Like us on Facebook or follow us on X to get the latest news about Vietnam! 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