Minister of Construction Nguyen Thanh Nghi speaks at the conference. (Photo: PV/Vietnam+)
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According to the leadership of the Ministry of Construction, to achieve the goal of the Project “Investing in the construction of at least 1 million social housing units for low-income people, industrial zone workers for the period 2021-2030” (of which the phase 2021 – 2025 completes about 428,000 units), in 2024, ministries, branches, and localities need to focus on removing obstacles related to mechanisms, policies, legal issues related to land, housing, and taxes; propose considering reducing interest rates for the 120 trillion VND support package…
Many localities are slower than planned
At the conference on implementing the Project “Investing in the construction of at least 1 million social housing units” in 2024, held on the morning of February 22, Minister Nguyen Thanh Nghi stated that the project has achieved important milestones.
Specifically, in terms of policy development, the National Assembly adopted the Housing Law, Land Law (amended) along with many legal documents related to many new contents, removing many difficulties, obstacles in practice; especially removing existing difficulties, obstacles to promote social housing, housing for workers.
“Along with the new policies together with the National Housing Development Strategy and the new construction support programs, renovation of housing for policy beneficiaries according to decisions of the Prime Minister have created a more complete legal framework, ensuring support and encouraging businesses to participate in the development of social housing, housing for workers,” emphasized Mr. Nghi.
In terms of the actual development of social housing, housing for workers, Mr. Nghi said that in the period from 2021 to now, in the whole country, there were 499 social housing projects implemented with a scale of more than 411,000 apartments (of which 71 projects were completed with a scale of nearly 40,000 units; 127 projects started construction with a scale of nearly 108,000 units; 301 projects were approved for investment decision making with a scale of 265,500 units).
In addition, implementing the preferential credit package of 120 trillion VND, up to now, 28 provinces have announced the list of 68 projects eligible for borrowing under the 120 trillion VND Credit Program, with a loan demand of over 30 trillion VND. Up to now, there have been 6 social housing projects in 5 localities disbursed with about 415 billion VND.
“According to the Project “Investing in the construction of at least 1 million social housing units”, by 2030, the total number of housing units in localities will complete about 1,062,200 units. Of which, in the period 2021 – 2025, about 428,000 social housing units will be completed. So if the projects that have been licensed and approved for investment decision making are completed on time, we will basically achieve the project’s goals by 2025,” Mr. Nghi believed.
However, Minister Nguyen Thanh Nghi also frankly pointed out some existing problems, obstacles that make it difficult to implement the project such as: Many localities have achieved slower results than registered in the project, including some localities that have not initiated new social housing projects until now.
In addition, the disbursement of the 120 trillion VND preferential credit package is also slower than the actual needs of enterprises investing in social housing, housing for workers.
Evaluating further, Deputy Minister of Construction Nguyen Van Sinh said that there are still a few key localities, although having a great demand for social housing, have not achieved expectations compared to the project’s goals by 2025.
“For example, Hanoi has 3 projects with 1,700 units, Ho Chi Minh City has 7 projects with 4,996 units, Da Nang has 5 projects with 2,750 units. Even some localities do not have new social housing projects initiated from 2021 until now, such as Vinh Phuc, Ninh Binh, Nam Dinh, Long An,” Mr. Sinh cited.
Conference on implementing the Project “Investing in the construction of at least 1 million social housing units” in 2024. (Photo: PV/Vietnam+)
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In addition, businesses investing in social housing, housing for workers also encounter difficulties in accessing land, investment and construction procedures, credit, and preferential policies.
Immediate actions needed
To achieve the goal of the Project “Investing in the construction of at least 1 million social housing units for low-income people, industrial zone workers for the period 2021-2030,” Deputy Minister Nguyen Van Sinh proposed that ministries and sectors focus on building guiding documents for the Housing Law (amended) to remove obstacles related to mechanisms, policies, laws, and effectively implement, promote the development of social housing.
Along with that, the Ministry of Construction will coordinate with relevant ministries and sectors to make suggestions on building guiding documents for the Real Estate Business Law, Land Law, and the Law on Credit Institutions (amended), as well as amending tax laws to synchronize with the Housing Law (amended) on housing policy mechanisms.
The State Bank of Vietnam will consider reducing interest rates for loans under the 120 trillion VND support package; remove difficulties and obstacles to effectively implement this support package following Resolution No. 33/NQ-CP dated March 11, 2023 of the Government.
Regarding localities, the Ministry of Construction proposed that provinces urgently establish, revise, and supplement the development programs and plans of localities, in which clarify the targets for social housing for low-income people, industrial zone workers.
In addition, localities need to plan and arrange independent social housing projects, housing for workers at suitable, convenient, and appropriately scaled locations with complete technical infrastructure, social infrastructure; review and strictly implement regulations on allocating 20% of invested land funds in commercial housing projects, urban areas to invest in developing social housing according to housing laws.
Regarding preferential funding for the development of social housing, the Ministry of Construction proposed that provincial People’s committees continue to consider, review legal procedures, the list of social housing, housing for workers construction projects, renovation and construction of qualified residential buildings should be eligible for borrowing from the 120 trillion VND support package to be publicly announced…
For businesses, the Ministry of Construction proposed that investors of social housing projects schedule, prepare resources, finances, apply new technologies to shorten construction time. After starting the project, the project’s investors are responsible for providing and publicly announcing information related to the project for people to know, register and monitor, and supervise.
In addition, the Ministry of Construction also suggested that enterprises urgently commence, ensure the progress of completing works on the 20% social housing land fund; proactively review target groups, conditions, and register with provincial People’s committees to be publicly announced in the list of preferential borrowing from the 120 trillion VND support package./.
Hung Vo
