The Vietnam Construction Bank (VNCB) will work with foreign financialorganisations to raise 1.5 billion USD in capital, to be paid ininstalments for building and upgrading houses.
Theinformation was revealed by Pham Cong Danh, General Director of ThienThanh Corp, an affiliated party providing construction materials for theconstruction, at a ceremony to introduce the project on May 14 in HoChi Minh City .
As a joint effort between the VNCB,foreign lenders and the Thien Thanh group, the chain is part of the 50trillion VND (2.38 billion USD) credit package announced earlier thisyear in Ho Chi Minh and Hanoi . It aims to boost links amonginvestors, contractors, material suppliers and banks in providing housesand house repair services for customers facing financial difficulties.
The chain is expected to bring about a 5-10 percentreduction in construction cost, while solving material inventoryproblems and stimulating the real estate market.
Borrowers joining the chain can borrow up to 100 percent of theconstruction cost in terms of 15-20 years with an annual interest of 9percent in the first year.
The programme will be first conducted in Ho Chi Minh City , then expanded to Hanoi , Da Nang and Can Tho.
According to Nguyen Tri Hieu, Deputy General Director of the VNCB, the50 trillion VND package and a separate 30 trillion VND (1.42 billionUSD) package introduced last year share the same purpose of removingdifficulties for the property market, reducing bad debts and recoveringeconomic 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 andcompleting housing projects, he said.
Hieu alsonoted that the State Bank of Vietnam has assigned eight banks, includingSai Gon-Hanoi Bank, Mekong Housing Bank and the VNCB, to conduct theconstruction chain.-VNA
Theinformation was revealed by Pham Cong Danh, General Director of ThienThanh Corp, an affiliated party providing construction materials for theconstruction, at a ceremony to introduce the project on May 14 in HoChi Minh City .
As a joint effort between the VNCB,foreign lenders and the Thien Thanh group, the chain is part of the 50trillion VND (2.38 billion USD) credit package announced earlier thisyear in Ho Chi Minh and Hanoi . It aims to boost links amonginvestors, contractors, material suppliers and banks in providing housesand house repair services for customers facing financial difficulties.
The chain is expected to bring about a 5-10 percentreduction in construction cost, while solving material inventoryproblems and stimulating the real estate market.
Borrowers joining the chain can borrow up to 100 percent of theconstruction cost in terms of 15-20 years with an annual interest of 9percent in the first year.
The programme will be first conducted in Ho Chi Minh City , then expanded to Hanoi , Da Nang and Can Tho.
According to Nguyen Tri Hieu, Deputy General Director of the VNCB, the50 trillion VND package and a separate 30 trillion VND (1.42 billionUSD) package introduced last year share the same purpose of removingdifficulties for the property market, reducing bad debts and recoveringeconomic 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 andcompleting housing projects, he said.
Hieu alsonoted that the State Bank of Vietnam has assigned eight banks, includingSai Gon-Hanoi Bank, Mekong Housing Bank and the VNCB, to conduct theconstruction chain.-VNA
