This case study was consolidated in September 2016.
Since the integration and globalization took place, Vietnam had been witnessing a continually high growth. However, after several international agreements had been signed and took effect, large scale capital investment and capital expenditures (CAPEX) kept decreasing, which raised an obstacle for kicking up domestic consumption.
Housing was a fundamental need for living, but in Vietnam, the investment and consumption for housing was much lower compared to developed countries. Despite the development of the economy, urbanization, and population, Vietnam still faced a shortage of residence houses in both quantity and quality.
Besides the lack of high skilled and experienced construction companies, one of the biggest difficulties was the limited financial accessibility, which led to the deficiency in housing supply. Although the Government released the 30-trillion-VND package in the stimulus project to support people with low income to buy a house, it was still insufficient as a majority of house purchasers in Vietnam was financed by individual savings or money borrowed from family or relatives, while loans were rarely neither trusted nor approachable. While there was an old common sense that loans incurred high interest rate, difficulties in accessing housing loans from banks or financial institutions was another reason.
Seeing through those botte-necks, the Bank of Mitsubishi UFJ, in coordination with JICA and B&Company Vietnam, launched the survey to obtain the information for the enhancement of housing loan scheme which was essential for development of housing investment in Vietnam, and thereby to make suggestions to Vietnamese Government for necessary policies in the future.