“Many people are in need of housing, but they can’t afford it because of high prices,” state broadcaster VTV on Tuesday cited Pham Minh Chinh as saying during a Monday meeting in Hanoi.

Prices for apartments in the Southeast Asian country’s major cities, including the capital Hanoi and business hub Ho Chi Minh City, have risen 5.6% so far this year to an average of 80 million dong (US$3,028) per square metre, according to government data.

The average annual salary of Vietnamese workers is currently 98.4 million dong, according to data from the National Statistics Office.

Economists have warned of asset bubble risks, including in the real estate sector, as the government encourages a credit splurge to sustain the country’s rapid economic growth.

At the Monday meeting, Chinh promised to cut costs and simplify administrative procedures for real estate developers. He also told the central bank to work out policies to offer real estate loans at “reasonable interest rates”, according to a separate government statement.

He also told cities and provinces to speed up the development of social housing projects, which are funded by cheap loans and designed to house eligible low income earners.

“Properly implementing housing policies and developing the property market will contribute to the country’s rapid and sustainable economic growth, while keeping inflation under control,” Chinh said.

Vietnam aims to keep inflation in the range of 4.5%-5.0% this year.

Consumer prices in August rose 3.24% from a year earlier, according to the statistics office. Costs for renting and construction materials rose 6.99%.

Chinh said bank lending to the property market has increased recently, adding that non-performing loans are under control.