Viet Nam: Housing Finance

Sovereign Project | 35497-013 Status: Closed

Latest Project Documents

Title Date
Housing Finance Project Oct 2013
Housing Finance Project Nov 2002

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Project Name Housing Finance
Project Number 35497-013
Country Viet Nam
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 1990-VIE: Housing Finance
Asian Development Fund US$ 30.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Finance - Housing finance

Gender Equity and Mainstreaming Effective gender mainstreaming

The Project will improve the quality of life of urban low income and poor households through improved housing. The specific objective is to promote the establishment of a sustainable housing finance market in Viet Nam accessible to low-income and poor urban households. The Project will provide approximately 27,500 housing finance loans for over 137,000 people, disbursed through participating financial institutions in the first round of lending. The Project will support the establishment of a housing finance facility that will become the apex institution for the housing finance sector, and the implementation of a policy and institutional reform action plan that will facilitate the development of the housing finance system.

The Project consists of three parts: (i) mortgage lending to urban low-income households (ULIPH); (ii) housing microfinance to urban poor households (UPH); and (iii) institutional strengthening and capacity building.

Project Rationale and Linkage to Country/Regional Strategy The lack of access to long-term credit funds prevents financial institutions from providing long-term loans for housing. The lack of long-term loans makes access to housing finance unaffordable for almost 65% of the urban population. Short-term loans require high debt service repayment. To make housing loans affordable to ULIPHs, it is necessary to establish an efficient housing finance system that can provide long-term financing for purchase of housing and financing options for the poor to upgrade or build their own house.

Improve the quality of life for urban low income and poor households (ULIPH) through improved housing.

Establish a sustainable housing finance market in Viet Nam accessible to ULIPHs.

Project Outcome
Description of Outcome Establish a sustainable housing finance market in Viet Nam accessible to ULIPHs.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Established HFF within SBV to refinance housing loans from qualified PFIs, monitor project funds, and establish procedures and documentation for the development of the housing finance sector.

2. Refinancing through HFF to PFIs originating housing loans for ULIPH.

3. Linkages between CFIs, and NGOs and PCs to facilitate small loans to UPH for own-build and house improvement.

4. Capacity building and institutional strengthening through HFF, resulting in effective project management systems in the PFIs, a housing finance orientation policy (document), and consolidate legislation on mortgages and valuation.

5. Policy reform to improve enabling enviroment

6. Monitoring and evaluation

Status of Implementation Progress (Outputs, Activities, and Issues)

- EA considered the initial requirements were very strict and the loan met with substantial implementation delays.

- In 2006 the loan agreement was amended, but the demand for the facility was still low.

- With the Government's recent fiscal stimulus package, there has been increased demand for the facility and in 2010 it was able to disburse $11.66 million of the total $34 million.

- The project loan is due for closing by end August 2011. It is expected that EA will be able to disburse most (if not all) of the loan amount by closing date. As of now, there remains an undisbursed amount of $6.5million plus the outstanding imprest account for liquidation amounting to $6.9million. Total disbursement todate is $27.5million (as of 23May2011).

- Close monitoring to ensure project completion by closing date.

Geographical Location Nationwide
Safeguard Categories
Environment C
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholders were consulted during the implementation of the PPTA and Appraisal Mission.
During Project Implementation The loan delivery mechanism for smaller own-build and house improvement loans will be implemented through CFI-managed credit schemes administered with assistance of people's committees, local community groups, and NGOs.
Business Opportunities
Consulting Services A total of 38 person-months of international and 26 person-months domestic consulting services will support capacity building and project implementation.
Procurement There will be minor procurement of goods.
Responsible ADB Officer Hiroyuki Aoki
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
State Bank of Vietnam
47-49 Ly Thai To Street
Ha Noi, Viet Nam
Concept Clearance 08 Mar 2002
Fact Finding 14 Oct 2002 to 18 Oct 2002
MRM 23 Oct 2002
Approval 20 Dec 2002
Last Review Mission -
PDS Creation Date 27 Nov 2006
Last PDS Update 26 May 2011

Loan 1990-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Dec 2002 31 Jul 2003 06 Jan 2004 30 Jun 2008 31 Aug 2011 03 May 2012
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 45.40 Cumulative Contract Awards
ADB 30.00 20 Dec 2002 0.00 0.00 0%
Counterpart 15.40 Cumulative Disbursements
Cofinancing 0.00 20 Dec 2002 2.01 0.00 100%
Title Document Type Document Date
Housing Finance Project Project/Program Completion Reports Oct 2013
Housing Finance Project Reports and Recommendations of the President Nov 2002

Safeguard Documents

See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Viet Nam: Housing Finance Project Validations of Project Completion Reports Sep 2014

Related Publications

None currently available.

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