Research on low-interest credit packages for social housing buyers in Vietnam

Research on low-interest credit packages for social housing buyers in Vietnam (Internet image) 

Regarding this matter, LawNet would like to answer as follows: 

On April 5, 2024, the Government issued Resolution 44/NQ-CP at the regular meeting of March 2024 and the online Government Conference with localities.

Research on low-interest credit packages for social housing buyers in Vietnam

Specifically, the Government of Vietnam requests the State Bank of Vietnam to lead and coordinate with relevant agencies and localities to focus on implementing the following tasks:

- Closely monitor global and domestic economic developments to actively, flexibly, timely, and effectively manage monetary policies; steadfastly and consistently prioritize promoting growth linked with macroeconomic stability, controlling inflation, ensuring the major balances of the economy, and ensuring the safety of banking operations and the credit system. Harmoniously and reasonably manage interest rates and exchange rates in line with market conditions, macroeconomic developments, and monetary policy objectives.

- Monitor closely the lending activities of the credit system towards the economy, the lending results of each credit institution and commercial bank to proactively implement effective and feasible credit growth measures in accordance with regulations, ensuring the fulfillment of the credit growth targets set for 2024, and meeting the full demand for credit capital of the economy.

Before April 10, 2024, publicly disclose lending interest rates, implement the deployment of credit packages, study step-by-step credit limit removal and control through appropriate and effective measures following international practices, suitable for Vietnam's reality, and ensure the safety of the system; ensure transparency; and operate according to market mechanisms.

Strengthen inspection, examination, and supervision, especially ensuring the proper use of borrowed capital for the intended purposes, controlling non-performing loan risks, and timely and effectively handling non-performing loans in the credit system.

- Continuously and synchronously implement measures to increase access to credit capital; direct credit capital to production, business sectors, priority sectors, growth drivers, digital transformation, green transformation, climate change response, circular economy, science, technology, and innovation...; strictly control credit in potential high-risk sectors, ensuring safe and effective credit operations.

- Actively disburse the credit package of VND 120 trillion for investors, homebuyers in social housing projects, worker housing, renovation projects, and reconstruction of old apartment buildings.

Direct state-owned commercial banks to study and develop credit packages for low-interest housing buyers with loan terms of 10 to 15 years, interest rates 3-5% lower than regular commercial loans for low-income individuals, and industrial zone workers to have opportunities and motivation to buy houses according to the Prime Minister's instructions in Notice 123/TB-VPCP on March 27, 2024, of the Government Office.

- Strictly, fully, effectively, and timely implement tasks and solutions to stabilize the gold market, handle price disparities in domestic and international gold markets according to the Government's instructions and the Prime Minister's instructions; urgently review and develop Decrees amending or replacing Decree 24/2012/ND-CP on gold market management to develop a stable, healthy, transparent, efficient, and sustainable gold market, avoiding the monetization of the economy.

- Urgently complete the valuation of mandatory banks and the plan for mandatory transfer of weak banks; submit to the Government for consideration and decision according to the instructions in Resolution 28/NQ-CP in 2024; develop and submit to competent authorities the plan for handling Saigon Commercial Joint Stock Bank (SCB).

- Direct credit institutions to urgently review and comprehensively inspect information technology systems, payment systems, electronic banking, etc. to timely address vulnerabilities and loopholes in the information system, ensuring security and confidentiality.

More details can be found in Resolution 44/NQ-CP dated April 5, 2024.

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