Speaking at an online meeting on June 11, Manh said the package is a drastic measure to help prop up the low-cost housing segment.
He said there is high demand for housing among low-income earners, especially those in urban areas, but low supplies.
Manh said the revived low-cost housing segment is expected to lead a spillover to other property segments.
Under the programme, the State Bank of Vietnam will provide VND30 trillion (US$1.428 billion) to five banks, including BIDV and Agribank, so that they can offer preferential loans to low-income earners and developers.
The fund will be disbursed over three years. From this month, eligible borrowers can access preferential home loans of 6 percent.
On May 28, the Housing and Urban Development Corporation and Vietnam BIC started a social housing project in Hanoi's Linh Dam New Urban Area - the first to be developed with credit from the stimulation package.
Director General of the corporation Nguyen Duc Hung said that the project will provide more than 1,000 low-cost apartments by early next year.
"Thanks to the preferential loans, we can offer home buyers a price of about VND12 million per square metre," he said, adding that another of its housing projects in suburban Me Linh District can offer prices of less than VND9 million per square metre.
The corporation plans to develop about 5,000 low-cost apartments by 2015, and 20,000 apartments by 2020.
Hung said that the social housing segment will be a priority in its business strategy following Government incentives for housing, including preferential loans and tax policies.
Deputy Minister of Construction Nguyen Tran Nam said that social housing projects in Hanoi will sell for less than VND12 million per sq.m.
In other provinces including Hung Yen, Thai Binh, Phu Tho, Bac Ninh, the price will be less than VND7 million per sq.m, he said.
"The prices offered express great efforts made by Government and developers, despite costs for building materials and land," he added.
In late 2009, the first social housing project was developed in major cities. So far, nearly 10,000 households have moved to their new homes.
In Hanoi alone, there is a need for at least 100,000 low-cost apartments.
"We don't expect the package can meet demand, but it will help warm up real estate and prop other segments," he said, adding that at present, 70-80 percent of housing for students and workers at industrial zones had been built by individuals, not by Government or housing corporations.
Tran Xuan Hoang, Deputy General Director of the Bank for Investment and Development of Vietnam, said in the next few days, the bank will also implement projects with investors in southern Binh Duong Province.
Deputy Minister Nam added that early this week, Agribank signed lending contracts with 10 investors in 13 housing projects eligible for preferential loans under the stimulation package.
Source : VNS/VOV online