Phan Thanh Mai, general director of the Viet Nam Bank for Construction (VNBC), was quoted as saying this by the Lao Dong (Labour) Newspaper in response to rumours about the package that have been circulating over the past few days.

Mai said the bank had submitted a proposal for a credit package together with four other commercial banks. He added that the total package will likely range from VND70 trillion ($3.33 billion) to VND100 trillion. The credit package is still in the proposal stage and has not been approved by the authorised agencies, he further noted.

Previously, several newspapers had quoted Le Xuan Nghia, former vice chairman of the National Financial Supervisory Committee, as saying that the authorities were considering launching a credit package of about VND100 trillion to boost the recovery of the real estate market, at the Viet Nam Economics Seminar 2014.

However, Nghia remarked that there was a misunderstanding about the credit package.

Nghia noted that the VNBC in collaboration with four other commercial banks would focus on developing important infrastructure projects, and the average and low income earners would be supported if they wanted to buy houses.

He also said the new credit package will not have the weaknesses of the previous one of VND30 trillion ($1.42 billion). Therefore, the loans granted from the new proposed credit package will be commercial loans with lower interest rates than others and not preferential loans granted under the VND30 trillion package.

He stated that the credit package proposal showed dynamic action taken by the commercial banks. The package is expected to support not only property projects but also building materials supply to ensure quality and prices, thereby heating the real estate market.

Do Duc Duy, spokesperson of the Construction Ministry, confirmed earlier this week that the ministry did not design any project to support the real estate market with the VND100 trillion package.

Duy said the ministry and provinces are collaborating to resolve the market's difficulties, especially with the housing programme.

Most experts and business insiders in the market have expressed concern over the potential impact of the VND100 trillion package. The previous VND30 trillion package had been disbursed slowly.

A representative from a property firm in Ha Noi noted that housing prices have not sharply declined, despite low sales in the market in the past few years. People still could not afford to buy a house.

"If we continue to pump money into the market, this could further raise real estate prices. This will not help resolve the supply and demand balance," he said.

Do Manh Hung, a state officer in Ha Noi, remarked that he did not expect too much from the VND100 trillion package as he has not bought a house or apartment even though the government has launched a VND30 trillion stimulus package to support low-income earners like him.

"It was hard to find a social housing project that was eligible for loans from the VND30 trillion package and was suitable for my needs. The market lacks social housing projects," Hung added.