Deputy Prime Minister Tran Hong Ha has asked the Ministry of Construction (MoC), the State Bank of Vietnam (SBV), and the Office of the Government to take measures to accelerate the implementation of a credit package worth VND120 trillion ($5 billion) for the development of social housing projects.
The MoC said that, since April, the ministry and the SBV have provided guidance, cut procedures, and shortened appraisal times to help businesses gain access to the credit source.
The package is yet to be disbursed, however.
Minister and Chairman of the Office of the Government Tran Van Son said there is huge demand for social housing but the implementation of social housing projects still faces many obstacles relating to the allocation of land funds, social housing development planning in localities, and procedures and conditions to buy social housing.
Many businesses are waiting for the amended Law on Housing to take effect, he said, which includes simplified processes and procedures.
As guidance documents have only just been released, it will take time for localities to compile lists of social housing projects and housing for workers as well as lists of those able to access the package.
The Deputy Prime Minister also asked localities to speed up the planning and allocation of land funds to build social housing and housing for workers.
The SBV was instructed to study and propose plans to set appropriate interest rates for investors and buyers obtaining credit from the package.
Around 100 projects building social housing and housing for workers in 36 localities around Vietnam have been licensed, with total investment capital of around VND70 trillion ($2.95 billion), according to the MoC.