Foreign banks invest US$1.5 bln in house construction chain
The Vietnam Construction Bank (VNCB) will work with foreign financial organisations to raise US$1.5 billion in capital, to be paid in instalments for building and upgrading houses.
The information was revealed by Pham Cong Danh, General Director of Thien Thanh Corp, an affiliated party providing construction materials for the construction, at a ceremony to introduce the project in Ho Chi Minh City on May 14.
As a joint effort between the VNCB, foreign lenders and the Thien Thanh group, the chain is part of the VND50 trillion (US$2.38 billion) credit package announced earlier this year in Ho Chi Minh City and Hanoi. It aims to boost links among investors, contractors, material suppliers and banks in providing houses and house repair services for customers facing financial difficulties.
The chain is expected to bring about a 5-10 % reduction in construction cost, while solving material inventory problems and stimulating the real estate market.
Borrowers joining the chain can borrow up to 100 % of the construction cost in terms of 15-20 years with an annual interest of 9 % in the first year.
The programme will be first conducted in Ho Chi Minh City, then expanded to Hanoi, Danang and Can Tho.
According to Nguyen Tri Hieu, Deputy General Director of the VNCB, the VND50 trillion package and a separate VND30 trillion (US$1.42 billion) package introduced last year share the same purpose of removing difficulties for the property market, reducing bad debts and recovering economic growth against the backdrop of a high property inventory.
However, while the older package targets customers with low incomes, this year’s one aims to unite the four sides in constructing and completing housing projects, he said.
Hieu also noted that the State Bank of Vietnam has assigned eight banks, including Saigon-Hanoi Bank, Mekong Housing Bank and the VNCB, to conduct the construction chain.
As a joint effort between the VNCB, foreign lenders and the Thien Thanh group, the chain is part of the VND50 trillion (US$2.38 billion) credit package announced earlier this year in Ho Chi Minh City and Hanoi. It aims to boost links among investors, contractors, material suppliers and banks in providing houses and house repair services for customers facing financial difficulties.
The chain is expected to bring about a 5-10 % reduction in construction cost, while solving material inventory problems and stimulating the real estate market.
Borrowers joining the chain can borrow up to 100 % of the construction cost in terms of 15-20 years with an annual interest of 9 % in the first year.
The programme will be first conducted in Ho Chi Minh City, then expanded to Hanoi, Danang and Can Tho.
According to Nguyen Tri Hieu, Deputy General Director of the VNCB, the VND50 trillion package and a separate VND30 trillion (US$1.42 billion) package introduced last year share the same purpose of removing difficulties for the property market, reducing bad debts and recovering economic growth against the backdrop of a high property inventory.
However, while the older package targets customers with low incomes, this year’s one aims to unite the four sides in constructing and completing housing projects, he said.
Hieu also noted that the State Bank of Vietnam has assigned eight banks, including Saigon-Hanoi Bank, Mekong Housing Bank and the VNCB, to conduct the construction chain.