China funds low-income housing

Viet Nam is expected to receive a loan of US$1.5 billion for its low-income housing projects following an understanding reached yesterday between the Vietnamese Ministry of Construction and the China Development Bank.

Construction Minister Nguyen Hong Quan said the understanding was a step towards accessing large and reliable sources of credit for Vietnamese construction enterprises which experienced difficulties getting loans from banks.

Working groups would be established to negotiate the value of loans and interest rates as well as specific contents of the agreement, he said.

Ministry’s international relations department head Pham Khanh Toan said the actual amount of the loan would depend on the demand for construction work.

“The interest rate on the loans will be lower than commercial rates,” he said. “The two sides will negotiate and calculate the rate.”

The ministry said housing for low-income earners was one of three main targets under the social housing programme; 37 such projects had been started, covering 750,000sq.m with a total investment of about VND3.6 trillion ($171 million).

The projects were expected to provide accommodation for 64,000 low-income earners.

Ha Noi, Da Nang, Hue and HCM City have taken the lead. In Ha Noi alone, nine projects of 3,832 apartments with an area of 270,000sq. m were completed or under construction, providing accommodation for 15,000 people. — VNS

Tags: China Development Bank