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Viet Nam: Housing Finance Project

sector: Finance | country: Viet Nam, Socialist Republic of

The project completion report (PCR) presented a few lessons related to better analyses on poverty and demand and supply for housing, improvements in the selection criteria, and more pro-poor loan procedures and flexibility in the loan size, term, and use. Most of these suggestions seem to be improvements in procedures during project preparation stage, rather than lessons. One lesson that can be highlighted is that improving the uptake of housing loans by the urban poor requires an adequate supply of housing units that suit their requirements, complemented by pro-poor loan procedures, such as fixed interest rates and flexible repayment terms. Another lesson is the need to properly phase consultancy support over the project’s implementation period in view of the weak institutional capacity. If interest rates are market-based and not subsidized, poor households may also need other forms of subsidy as a part of national social policy to make housing affordable to them. This validation has no other lessons to offer.

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