Rethinking the ineffective 120 trillion package, Deputy Prime Minister suggests reviewing the flawed policies

Commencing the small drop project

At the conference to implement the Project “Investing in building at least 1 million social housing units for low-income people, workers in industrial zones in the period 2021 – 2030” on February 22 morning; Minister Nguyen Thanh Nghi believes that the development of social housing, housing for workers is an effective solution to promote socio-economic development, contributing to creating supply sources, restructuring the real estate market in balance with the structure of real estate products.

In terms of the actual development of social housing, housing for workers, Minister of Construction said that only in the period from 2021 to now, there have been 499 social housing projects implemented nationwide with a scale of more than 411,000 apartments.

Regarding the implementation of the 120,000 billion VND preferential credit package, currently, 28 provinces have announced the list of 68 projects eligible for borrowing under the 120,000 billion VND Credit Program (with a demand for capital of over 30,000 billion VND). Up to now, there have been 6 social housing projects in 5 localities disbursed with a capital of about 415 billion VND.

Assessing the overall situation of the implementation and implementation of the project, the head of the construction industry frankly said that the implementation of the project still has many difficulties. “The disbursement of the 120,000 billion VND preferential credit package is still slower than the desired and practical needs of enterprises investing in social housing, housing for workers,” said the Minister of Construction.

Also according to the Minister of Construction, there are still obstacles and difficulties for enterprises investing in social housing, housing for workers in accessing land, investment and construction procedures, credit, preferential policies. To achieve the goals of the project, relevant ministries and localities need to closely follow and strictly implement the tasks; especially in reviewing planning, allocating land funds, reforming administrative procedures… for social housing projects. In addition, related agencies need to review the implementation of the 120,000 billion VND credit package to come up with solutions to remove obstacles and promote access and disbursement of this credit package.

“Difficult” businesses do social housing

Mr. Pham Thieu Hoa – Chairman of Vinhomes – said that the implementation of social housing still faces many difficulties and bottlenecks. Specifically, for businesses exempt from land use fees but still have to determine the land rent. In addition, the process of confirming buyers also takes time. Mr. Hoa suggested shortening administrative procedures.

Mr. Hoa also said that currently the investment rate in social housing is lower than 25% compared to commercial housing. Currently, social housing also needs quality investment and models, so the Ministry of Construction should reconsider this investment rate. “Social housing needs to have its own mechanism, faster and more efficient, and better quality. The view and thinking of social housing objects should be broader and more equal,” Mr. Hoa said.