This is the guidance of Deputy Prime Minister Tran Hong Ha at the national online conference to implement the Project “Investing at least 1 million social housing units for low-income workers in industrial zones in the period 2021-2030” (Project), on the morning of February 22, 2024.
Deputy Prime Minister Tran Hong Ha suggested that businesses not only point out shortcomings and difficulties, but also actively participate in proposing solutions and initiatives to make social housing policies truly come to life – Photo: VGP/Minh Khoi
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Unified criteria, simplified procedures
Minister of Construction Nguyen Thanh Nghị said that from 2021 up to now, the whole country has implemented 499 social housing projects with a scale of over 411,000 apartments. Currently, there are 28 localities announcing a list of 68 projects eligible for borrowing according to the 120,000 billion VND credit program with a borrowing demand of over 30,000 billion VND; 6 social housing projects in 5 localities have disbursed about 415 billion VND.
The Project sets a target to complete more than 1.06 million units by 2030, of which about 428,000 apartments will be completed in the period of 2021-2025. However, the implementation of the Project still faces many difficulties and limitations, such as the implementation results of many localities being slower than the registered plan; the disbursement of the 120,000 billion VND preferential credit package is slow; enterprises investing in social housing and housing for workers encountering difficulties in accessing land, investment procedures, credit, preferential policies, etc.
In 2024, Resolution No. 01/NQ-CP of the Government on tasks and key solutions for implementing the Economic-Social Development Plan and the State Budget estimate for 2024 requires the promotion of social housing development, housing for workers; striving to complete about 130,000 apartments in 2024.
Making suggestions at the conference, representatives of enterprises propose simplifying and streamlining investment procedures for social housing projects, especially procedures related to detailed project planning (which can be implemented in parallel with zoning adjustment); determining land use fees, land leasing fees, and exempted or reduced amounts; selecting candidates eligible to buy social housing; improving the quality of social housing; proposing the mandatory inclusion of land allocation and recovery in local laws for the construction of social housing, etc.
Representatives of Hoang Quan Corporation, Viglacera Group recommend that although the maximum profit for social housing construction is 10%, social amenities such as basements, public works, parking lots, etc., are still needed. Therefore, it is proposed to adjust and balance the investment capital rate for social housing construction (which is currently lower than 25% compared to the investment capital rate for commercial housing) equivalent to the investment capital rate for commercial housing.
In addition, representatives of localities such as Hanoi, Ho Chi Minh City, Da Nang, Dong Nai, etc., recommend simplifying and shortening the sequence and timing of selecting investors to implement social housing construction; unifying the conditions for participating in the preferential credit facility of 120,000 billion VND; specifically regulating the list of items, technical infrastructure works in social housing investment and construction projects that are supported by the State budget to attract investor participation, etc.
It is necessary to remove difficulties in terms of mechanisms and capital for businesses to do social housing
Deputy Prime Minister Tran Hong Ha: There is a great need for social housing, which should not be hindered by the difficulties and problems that have been identified – Photo: VGP/Minh Khoi
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Concluding the conference, Deputy Prime Minister Tran Hong Ha assessed that in recent time, the Ministry of Construction, together with the ministries, branches, and localities, has made great efforts to remove difficulties, problems with mechanisms, and policies in a thorough, systematic, and serious manner.
“The implementation of the Project is a starting point, a pilot, from which we identify the existing problems, difficulties, and draw lessons to implement the housing policies for all urban and rural people, reflecting the superiority of the system. This is a political task, mobilizing the participation and response of the political system, people, and businesses to ensure the well-being, warmth, and happiness of the people,” emphasized Deputy Prime Minister.
Listening and acknowledging opinions at the conference, Deputy Prime Minister Tran Hong Ha said that many difficulties, problems have been resolved in the Land Law in 2024, the Housing Law in 2023, which have just been passed by the National Assembly. The Ministry of Construction, together with the ministries, branches, needs to review, closely coordinate to remove them; at the same time, urgently build and put new points in the land law, housing law, etc., into practice.
“The work must be very detailed and specific, such as determining the eligibility criteria for purchasing, renting social housing, investment procedures, accessing preferential loans, etc.,” the Deputy Prime Minister said.
Regarding the difficulties in the social housing development land fund, the Deputy Prime Minister believed that the criteria for determining the eligibility criteria for purchasing social housing should be simplified, such as: Not having a house in the area where they are living, have not bought social housing, have stable income…; at the same time, including enterprises in industrial zones in the eligible subjects to rent or buy social housing as dormitories for workers.
This is an important basis for the ministries, departments, organizations, businesses… to participate in statistics, propose, so that localities can consolidate housing needs. From there, the Ministry of Construction will coordinate with the Ministry of Natural Resources and Environment to incorporate the development of urban and rural system planning, serving housing needs when developing industrial zones, educational institutions, health care, clearing grounds, resettlement, removing temporary houses, urban renovation, rural areas…
“Social housing projects must have complete essential infrastructure in terms of transportation, education, health care, culture, fire safety… in the ‘big picture’ of urban and rural planning,” emphasized the Deputy Prime Minister, adding, “The Land Law in 2024 does not restrict the use of existing funds, compatible with planning authorized to decide to convert land use purposes for social housing”.
Agreeing with the suggestion that there should be a stable source of finance for social housing development, the Deputy Prime Minister believed that in addition to state resources, resources outside the state should be mobilized to participate.
The Deputy Prime Minister assigned the Ministry of Construction, the State Bank, the Ministry of Finance, the Ministry of Natural Resources and Environment to study plans, solutions to create favorable conditions, support banks to deploy the 120,000 billion VND preferential credit package for the social housing sector according to market mechanisms; allow enterprises to mortgage assets formed on land for credit; establish a fund for social housing…
The Deputy Prime Minister assigned the Ministry of Construction to classify, together with the ministries, sectors, review the group of problems that have been resolved by newly issued legal documents, and the group of problems that need to be resolved continuously.
The Deputy Prime Minister requested that businesses not only point out shortcomings and difficulties but also actively participate in proposing solutions and initiatives to make social housing policies truly come to life, achieve the objectives of the Project, and aim at providing access to housing for all people in any situation.
