Illustrative image. (Source: Vietnam+)
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In order to effectively implement the project “Investment in the construction of at least 1 million social housing units for low-income earners, industrial zone workers in the 2021-2030 period”, the Ministry of Construction announced on February 19 that by 2024, the entire country will strive to complete 130,000 social housing units according to the goals set by the Government in Resolution No. 01/NQ-CP dated January 5, 2024.
1,249 social housing land plots have been planned
According to the latest report sent to the Prime Minister by the Ministry of Construction, with the National Assembly’s approval of the Amended Housing Law, Amended Real Estate Business Law, Amended Land Law, and Amended Credit Institutions Law, there are now many mechanisms and policies in place to remove difficulties, increase support, promote the development of social housing and specific policies for workers’ housing in industrial zones and housing for the armed forces.
Regarding the planning and allocation of land for social housing development, the Ministry of Construction stated that based on the summary report of localities, there are currently 1,249 land plots planned with a total area of 8,390 hectares for social housing throughout the country.
Compared to the 2023 report (in 2019, the entire country planned 3,359 hectares), the area of land for social housing development has increased by more than 5,000 hectares. Some localities that are concerned about planning and allocating land for independent social housing development include Dong Nai with 1,063 hectares, Ho Chi Minh City with 608 hectares, Long An with 577 hectares, Hai Phong City with 471 hectares, and Hanoi with 412 hectares.
“However, there are still some localities that have not yet planned and allocated land for social housing development, such as Ninh Binh, Ha Giang, Lai Chau, Nghe An, Dak Nong, Ninh Thuan, and Dong Thap,” noted the report from the Ministry of Construction.
Regarding the support fund of VND 120,000 billion according to Resolution No. 33/NQ-CP dated February 11, 2023 of the Government, according to statistics from the Ministry of Construction, there have been 27 localities announcing a list of 63 eligible projects to borrow under the VND 120,000 billion credit program, with a total loan demand of over VND 27,966 billion.
As of February 5, 2024, there have been 5 social housing projects (in Binh Duong, Quang Ninh, Bac Ninh, Lang Son, An Giang provinces) that have been disbursed with a total capital of about VND 416 billion. Therefore, with the VND 120,000 billion support package according to Resolution No. 33/NQ-CP, there have been initial results, but the disbursement process is still slow.
1,249 land plots with a total area of 8,390 hectares have been planned for social housing nationwide. (Photo: Hung Vo / Vietnam+)
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“In the near future, with the determination of all levels of government to remove difficulties and promote the development of social housing, the disbursement of the VND 120,000 billion support package will achieve better results,” the representative from the Ministry of Construction expressed confidence.
Remaining challenges that need to be addressed
However, the Ministry of Construction also noted that the current mechanisms and policies for the development of social housing and housing for workers have not yet met practical demands and have not been timely supplemented and amended in the initial stage of the project “Investment in the construction of at least 1 million social housing units for low-income earners, industrial zone workers in the 2021-2030 period.”
Some of the main obstacles to the development of social housing include the lack of land fund, limited credit sources from the state budget, inconsistent construction procedures, and prolonged implementation timeline.
Meanwhile, the Amended Housing Law and Amended Real Estate Business Law have introduced additional preferential policies for investors as well as simplified procedures and conditions for buying, renting, and lease-purchase of social housing. However, effective January 1, 2025, the Amended Land Law and Amended Housing Law will take effect.
The Ministry of Construction also noted that many localities have not prioritized and actively implemented the assigned tasks in the project “Investment in the construction of at least 1 million social housing units”; their land fund for social development has not been clearly defined in urban and industrial zone planning.
“In addition to the 20% social housing land in commercial housing projects, most localities have not paid attention to planning and allocating land independently for social housing projects,” emphasized the representative from the Ministry of Construction.
Furthermore, some localities have had many approved investment projects, but the local authorities have not paid attention to creating favorable conditions for selecting project investors for implementation; some social housing projects have started construction, but the companies have not carried out or have been slow in the construction progress.
In addition, the support fund for social housing development under Resolution No. 11/NQ-CP and Resolution No. 33/NQ-CP of the Government has not been efficiently disbursed. According to the Ministry of Construction, this is because many social housing investors do not meet the criteria and conditions for borrowing under credit laws; some localities have not announced a list of qualified social housing projects eligible for borrowing; the short-term loan period (Resolution No. 11/NQ-CP only supports a period from 2022 to 2023) has not attracted investment borrowing.
To address these challenges, the representative from the Ministry of Construction emphasized that in the near future, they will work with relevant ministries, sectors, and localities to develop guiding decrees for the Amended Housing Law No. 27/2023/QH15 to resolve issues related to mechanisms, policies, and laws and facilitate effective implementation and promotion of social housing development.
In addition, the Ministry of Construction will coordinate with relevant ministries and sectors to provide feedback on the development of guiding decrees for the Amended Real Estate Business Law, Amended Land Law, and Amended Credit Institutions Law, and amend tax laws to synchronize with the Amended Housing Law regarding social housing policies.
Finally, according to the plan, on February 22, 2024, the Ministry of Construction, together with relevant ministries, sectors, and People’s Committees of provinces and cities, will organize a conference to implement the project “Investment in the construction of at least 1 million social housing units for low-income earners, industrial zone workers in the 2021-2030 period,” with a focus on achieving the Government’s goal of completing about 130,000 social housing units nationwide.
By Hung Vo
