VietNamNet Bridge – Government officials and experts have become impatient about the slow disbursement of the VND30 trillion bailout to be pumped into the real estate market.
Dan Viet has quoted the latest report of the Ministry of Construction which showed that only six enterprises have got the nod from the State Bank of Vietnam to borrow capital, totaling VND860.5 billion.
The capital has been disbursed to two of them so far, totaling VND54.798 billion.
Commercial banks have also committed to lend VND203.049 billion to 619 household and individual clients, while VND142.47 billion has been disbursed so far.
As planned, the VND30 trillion bailout aims to help ease the difficulties on the real estate market, with the focus on low cost houses, the market segment with very high demand and low supply.
However, too many barriers have existed which makes it impossible for many people to access the bailout.
The people cannot meet the requirements set by the banks to be eligible for borrowing capital at the preferential interest rate of 6 percent.
They need to prove their annual income, the solvency and the confirmation that they still don’t have accommodation, or have accommodations with poor conditions (less than 8 square meters per capita).
Borrowers complained that commercial banks apply inconsistent required procedures.
MHB, for example, requests clients to prove their monthly income of 5-6 million and the certificate by local authorities about the lack of accommodations.
Meanwhile, some branches of Vietinbank ask clients to show the confirmation by the district land registry agencies.
According to Pham Si Liem, Deputy Chair of the Vietnam Construction Federation, the disbursement has got stuck because of the unreasonable way of approaching the issue. The government lends money to people to buy houses, while the supply has not ready yet.
Liem said on VTC that the State should have used its tools to reduce the land leasing fee, cut tax and provide preferential loans to real estate developers. Only when the supply is ready and the prices are reasonable, will it be possible to stimulate the purchasing power.
The dispatch No. 1250 of the Ministry of Construction on the subjects to the VND30 trillion lending program does not set the maximum income of the subjects.
This means that people would have more opportunities to buy houses under the program if they have higher incomes. Meanwhile, the program aims to provide accommodations to low income earners.
In fact, only the people with stable and medium incomes can access the credit package.
Meanwhile, Professor Dang Hung Vo, who is believed to be the biggest real estate expert in Vietnam, said on Tien Phong, that there’s no need to worry about the slow disbursement of the VND30 trillion bailout.
“The slow disbursement at this moment comes in line with the economic laws. As the bailout is a medium term one, no need to hurry to implement it,” he said.
In order to speed up the disbursement, the supplies need to be profuse. Meanwhile, the demand is big now, while the supply remains modest. It is necessary to create most favorable conditions for enterprises to develop low cost products.
He also said that in Vietnam, as people receive salaries and spend money in cash, it is very difficult to know their real incomes.
Mai Chi