On March 16, in his concluding speech at the conference on overcoming difficulties and promoting the development of social housing, Prime Minister Pham Minh Chinh highly appreciated the report of the Ministry of Construction and 16 contributions.
If the localities do not create conditions, businesses will also lose interest
The Prime Minister emphasized that the Housing Law (amended), the Land Law (amended); the Real Estate Business Law (amended), which were approved by the National Assembly, have many preferential mechanisms for social housing projects.
The ministries are actively reviewing and amending many related legal documents, issuing new guidelines with many new contents, removing many difficulties and obstacles in practice…; striving to complete and report to the National Assembly for earlier effective date from July 1, 2024 (currently effective from January 1, 2025).
In addition, many social housing projects, housing for workers have been implemented and completed, contributing to support low-income individuals, workers, and laborers to “settle down and find employment”. From 2021 to date, there have been 499 social housing projects implemented nationwide, with a scale of over 411,000 apartments.
 Prime Minister Pham Minh Chinh concluded. Photo by Doan Bac |
Although the 120 trillion VND preferential credit package still faces difficulties, it has achieved initial results, contributing to promoting the development of social housing, housing for workers in localities. 28 localities have announced the list of 68 projects meeting the conditions for borrowing under the 120 trillion VND credit program, with a loan demand of more than 30 trillion VND…
However, the Prime Minister believes that the development of social housing has not yet achieved the target, requirements, and desires and there are still existing difficulties. Many localities do not have available clean land funds for social housing.
Some social housing projects in some localities are planned but are given to weak investors, while some enterprises lack the motivation to implement due to low efficiency, leading to slow project implementation. “If the localities do not create favorable conditions, support and demand, causing difficulties, confusion, the business will also lose interest,” said the Prime Minister.
It is worth noting that many provinces, major cities, and industrial clusters with a high implementation rate of social housing compared to the target of the project are still low, and many localities have not started social housing projects from 2021 to date (such as Vinh Phuc, Ninh Binh, Quang Ngai, Long An, Vinh Long…) according to the report of the Ministry of Construction.
The disbursement of the 120 trillion VND preferential credit package is still slow compared to expectations and practical needs (commitment to provide credit is only 5.8%, disbursement is less than 1%)…
The Prime Minister and delegates attending the conference. Photo by Doan Bac |
Research on establishing the Social Housing Fund
To develop social housing, the Prime Minister clearly stated that all relevant entities must maximize their capabilities, passion, highest sense of responsibility, proactivity, creativity, and timeliness, together with social responsibility, social ethics to carry out their tasks well.
The Prime Minister asked the Ministry of Construction, the Ministry of Natural Resources and Environment, and the State Bank of Vietnam to focus on developing and soon promulgating decrees and legal documents guiding the implementation of social housing projects. In which, they should focus on removing difficulties and obstacles in the spirit of cutting administrative procedures to the maximum, enhancing decentralization, and devolution to minimize time and costs for implementing social housing projects.
The Ministry of Construction is responsible for developing a streamlined procedure for administrative procedures for selecting investors and implementing social housing projects to save time, encourage, and mobilize social resources.
The State Bank of Vietnam directs state-owned commercial banks to jointly conduct research, develop and provide credit packages for home buyers with a period of 10-15 years with an interest rate lower from 3-5% than commercial loans; study, consider reducing interest rates for capital support of 120 trillion VND.
The Ministry of Finance is assigned to study the establishment of the Social Housing Fund, appropriate tax policies.
With localities, the Prime Minister suggested that the Party Committee should have a resolution to lead the development of social housing, the People’s Council issue appropriate policies and regulations in accordance with the local characteristics, People’s Committees at all levels, especially at the district and commune levels, organize well and strictly implement mechanisms, policies, and regulations of the law, flexibly and timely apply under local conditions, dare to take responsibility, think and do not push or avoid.
The Prime Minister emphasized that attractive land areas, locations with advantages must prioritize production, business, create employment opportunities for people, and then people will come to work, so they will have people to live, buy houses, from which real estate and sustainable urban areas can be developed.
Along with that, conducting auctions, tenders to select investors with potential, financial capacity, and experience to implement publicly and transparently, and increase the rate of deposit, guarantee to ensure the selection of investors with good financial capacity.
Regarding enterprises, the Prime Minister requires social housing project investors to draw up a schedule, prepare sufficient resources, finance, and apply new technologies to shorten construction time.
The Prime Minister noted: “Enterprises, banks must fulfill their obligations, responsibilities according to the law, and also demonstrate social responsibilities, business ethics to run social housing business in accordance with the situation, conditions of the people and pay attention to their difficulties, especially for people with merits, social beneficiaries, the poor, workers in need of housing… The spirit is the harmony of interests, risk-sharing, ‘in me, there is you, and in you, there is me’.”
