Viet Nam : Housing Finance
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 Details
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Project Officer
Aoki, Hiroyuki
Southeast Asia Department
Request for information -
Country/Economy
Viet Nam -
Modality
-
Sector
- Finance
Project Name | Housing Finance | ||||
Project Number | 35497-013 | ||||
Country / Economy | Viet Nam |
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Project Status | Closed | ||||
Project Type / Modality of Assistance | Loan |
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Source of Funding / Amount |
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Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development |
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Sector / Subsector | Finance / Housing finance |
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Gender | Effective gender mainstreaming | ||||
Description | 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. |
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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. | ||||
Impact | 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 | |
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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 |
Safeguard Categories | |
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Environment | C |
Involuntary Resettlement | |
Indigenous Peoples |
Summary of Environmental and Social Aspects | |
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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 | |
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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 | Aoki, Hiroyuki |
Responsible ADB Department | Southeast Asia Department |
Responsible ADB Division | Public Management, Financial Sector and Trade Division, SERD |
Executing Agencies |
State Bank of Vietnam |
Timetable | |
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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
Milestones | |||||
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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 | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 44.90 | Cumulative Contract Awards | |||
ADB | 30.00 | 17 Jun 2022 | 0.00 | 0.00 | 0% |
Counterpart | 14.90 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 17 Jun 2022 | 0.00 | 0.00 | 0% |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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Title | Document Type | Document Date |
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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 |
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Viet Nam: Housing Finance Project | Validations of Project Completion Reports | Sep 2014 |
Related Publications
None currently available.
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Tenders
Contracts Awarded
Procurement Plan
None currently available.