Vietnam offers $5B in credit for social housing

By Anh Minh, Duc Minh February 17, 2023 | 06:17 am PT

A social housing neighborhood in HCMC's Binh Tan District, August 2022. Photo by VnExpress/Quynh Tran

Four state-owned banks have agreed to set aside a credit package of VND120 trillion ($5 billion) for the development of social housing and workers’ housing projects, central bank governor said.

The loan interest rates for buyers or developers of social housing projects and workers’ housing projects will be 1.5-2% lower than average bank lending rates, central bank governor Nguyen Thi Hong said at a meeting called to untangle issues in the property sector Friday.

She also affirmed that the State Bank would be ready to refinance if participating banks end up facing a liquidity shortage.

On Thursday, the Ministry of Construction asked the National Assembly and the government to set aside a credit package of VND110 trillion for the development of social housing.

According to the ministry, investment in social housing for low-income workers should be sourced from cities’ and provinces’ medium and long-term capital.