Loan accessibility for social housing in Vietnam's Mekong Delta: An empirical study

Abstract

The purpose of this study is to examine how easily low-income workers can get loans for social housing projects under a Vietnamese government policy. This policy, outlined in Decision 388/QD-TTg by the Prime Minister on April 3, 2023, aims to build at least 1 million apartments for low-income individuals and industrial park workers from 2021 to 2030. The study focuses on four branches of the Vietnam Bank for Social Policy (VBSP) in the Mekong Delta region: Tra Vinh, Vinh Long, Ben Tre, and Soc Trang provinces. The research involved surveying 280 workers who applied for loans at these banks between May 2003 and September 2023. Half of these applicants met the loan criteria, while the other half did not. Using a Binary logistic regression model, the study identified several factors that influence the likelihood of obtaining a social housing loan from VBSP. These factors include the applicant's age, education level, number of dependents, marital status, total income, equity ratio, and the value of collateral. Among these, the total income, value of collateral, and equity ratio were found to have the most significant effect on loan accessibility. Based on the findings, the authors suggest policy recommendations to make it easier for low-income workers to access loans for social housing in the future, enhancing the effectiveness of the VBSP's lending program in the Mekong Delta.