The Government’s Social Housing Project has been implemented since April this year. So how much progress has been made on the implementation? 

I should say the Việt Nam Bank for Social Policies (VBSP) has started to lend money to low-income people since April 2018 in accordance with Government Decree 100/2015/NĐ-CP on the development and management of the National Social Housing Program. Beneficiaries of this program include people in the armed forces; government officials and public employees; employees working in industrial parks; poor households or near-poor people living in urban areas.

By now, our bank has launched a big-scale credit program on social housing for all districts and townships nation-wide. So far we have lent out over VNĐ 200 billion (US$8.52 million) to more than 700 beneficiary households in 50 provinces and cities nation-wide.

....

Under the current credit law, borrowers must have their book savings or saving accounts in the VBSP. Will you please explain a little about this requirement?

This requirement has been applied in many countries. In those countries, whoever wants to borrow money from the banks for social policies, they have to open their saving books in these banks for at least a period from 5-10 years with a certain amount of money. This method is considered as a revolving credit scheme among members of the credit saving group. In other words, the client will sign a borrowing contract right at the on set of the opening of their saving book with their banks.

So the VBSP has tried to apply this model in Việt Nam. On the other hand, the VBSP has been developing a new program to encourage the clients to deposit their savings in the VBSP for buying their own flat/apartment in the Government Housing program in the future.