In an effort to address the scarcity of affordable apartments, a credit package worth VND120 trillion (equivalent to US$5.12 billion) has been introduced. This package aims to incentivize both developers and buyers, with the objective of boosting social housing construction.
The central bank launched a 10-year package in April, offering lower loan interest rates for individuals and businesses. Under this program, the interest rates offered by the central bank are 1.5-2% lower compared to those provided by commercial banks.
However, the distribution of funds has not been as efficient as anticipated. This can be attributed to the scarcity of resources and inadequate loan conditions. Hong clarified that the central bank will take measures to encourage local governments to promptly identify projects that qualify for this funding package.
During a question and answer session of the 15th National Assembly in Hanoi, Hong emphasized that the bank will be issuing instructions to credit institutions, urging them to place greater emphasis on disbursement. Furthermore, this directive will also encompass commercial banks as well.
During the recent period, a mere 18 out of the 63 People's Committees have disclosed a list of participating projects. These committees have identified a total of 53 projects, with a combined loan demand reaching VND27 trillion. As of now, an amount of VND105 billion has been disbursed across three localities.
Based on a Government report, the urban areas have witnessed significant progress in social housing development. By the end of September, approximately 20,210 apartments across 46 social housing projects had been successfully completed. Additionally, there are currently 419 ongoing projects with an impressive 392,635 apartments under construction, indicating substantial efforts to address the housing needs of the community.
Hong emphasized the significant progress made in the realm of cashless payments, attributing it to the effective measures implemented by the SBV. These measures, which include a thorough examination and enhancement of the legal framework, have yielded positive outcomes, resulting in a notable increase in non-cash transactions.
According to her, despite the growing popularity of cashless payment, there are still challenges such as traditional payment practices and the rise of high-tech crimes. In light of this, she mentioned that the State Bank of Vietnam (SBV) will carefully examine existing documents, collaborate with various agencies to improve the legal framework, implement measures to safeguard client information security, and intensify communication efforts.
During the working session, the governor addressed inquiries concerning credit management and measures to combat loan sharks.