The Ministry of Construction (MoC) is seeking input from other ministries and agencies on a draft resolution regarding a preferential capital source for social housing development.

This involves approximately VND100 trillion (nearly $4 billion) sourced from Government bond issuance.

Under the draft resolution, a citizen, who meets required regulations, can borrow up to 80% of the value of his or her social housing purchase or lease-purchase agreement. For new construction or home renovation, the maximum loan is 70% of the value, capped at VND1 billion (nearly $3,940). The interest rate will be equivalent to the lending rate for poor households as determined by the Prime Minister at each period. The maximum loan term is 25 years.

The disbursement period for the VND100 trillion preferential credit package will continue until the funds are fully disbursed, but no later than December 31, 2030.

The proposed disbursement schedule for the preferential credit package is as follows: VND16.5 trillion ($650 million) each year between 2025-2029; and VND17.5 trillion (nearly $689.6 million) in 2030.

The MoC states that implementing the Government's plan to build one million social housing units between 2021 and 2030 requires a total capital of VND500 trillion (about $19.7 billion).