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Deputy Minister of Construction Bui Xuan Dung informs the press about social housing construction – Photo: VGP/Nhat Bac
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There is a significant pressure to complete the progress of social housing projects in 2024.
At the press conference, a question was raised regarding breakthrough solutions to achieve the government’s target for this year, given that there are only about five months left until the end of 2024.
According to Deputy Minister of Construction Bui Xuan Dung, the target for social housing investment as of July 30, 2024, based on reports from local authorities, is 619 social housing projects with 561,816 units. This includes 79 completed projects with 40,679 units, 128 projects that have been licensed and started construction with 111,688 units, and 412 projects that have been approved in principle with a scale of 409,449 units.
In the first six months of 2024, eight projects were completed (four fully and four partially) with 3,136 units, five projects were licensed for construction with 8,468 units, and nine projects were approved with 8,795 units.
The goal, as outlined in the Resolution No. 01 of the Government on January 5, 2024, is to strive to complete approximately 130,000 units. With eight projects and approximately 3,100 units completed in the first half of 2024, there are nearly 100,000 units left to be finished by the end of the year.
The Ministry of Construction has also set the goal of completing the projects that have been started on schedule by 2024. This progress pressure is immense and requires the involvement of various levels of government, ministries, sectors, and localities.
Interest rates for social housing loans may decrease by 3-5%.
In response to a question about the proposal to cut the VND 120 trillion support package and its implementation and disbursement, the Deputy Minister said that only 34 out of 63 provinces have announced 78 eligible projects on their electronic information portals. Banks have disbursed VND 1,344 billion, including VND 1,295 billion for investors in 12 projects and VND 49 billion for home buyers in five projects.
Regarding Resolution No. 33 of the Government, a program with a credit package of about VND 120 trillion has been implemented for investors and home buyers of social housing and worker housing projects. The interest rates are 1.5-2% lower than the average lending rates of state commercial banks in the market during the same period.
Currently, the State Bank is seeking opinions from ministries, branches, and related agencies on the draft proposal to adjust the content of the VND 120 trillion program in Resolution No. 33/NQ-CP. The proposed adjustment aims to reduce lending rates for buyers by 3-5% (for investors, the support remains at 1.5-2%). The Ministry of Construction has agreed with the State Bank’s proposal to create favorable conditions for people to access preferential capital and to align with the Government’s Notice 123 dated March 27, 2024, the conclusion of the Prime Minister at the conference on removing difficulties and promoting social housing development, Resolution No. 44/NQ-CP dated April 5, 2024, the regular Government meeting in March 2024, the Government’s online conference with localities, and the Prime Minister’s Official Dispatch No. 32/CD-TTg dated April 5, 2024, on directing the implementation of credit policies to promote capital sources for economic development in 2024.
During the regular Government meeting this morning, the Prime Minister agreed with the State Bank’s proposal and requested the early completion and submission of the resolution on adjusting the VND 120 trillion program.
Regarding upcoming tasks and solutions, the Ministry of Construction, in coordination with the Central Economic Committee, will organize a national conference to implement the Central Committee’s Directive No. 34 dated May 24, 2024, on promoting the development of social housing and implementing the goals of the Proposal in August 2024. It is suggested that the State Bank direct and encourage more commercial banks to participate in lending the VND 120 trillion support package and create favorable conditions for banks to research and consider increasing the loan term for social housing projects with preferential interest rates. The loan term is proposed to be extended to 10-15 years, with interest rates 3-5% lower than those of regular commercial banks, to support low-income earners and industrial park workers.
For local authorities, it is crucial to urgently plan and effectively implement the tasks and solutions set out in the Central Committee’s Directive No. 34. Secondly, they should direct and inspect the investment in social housing construction, ensuring quality and sufficient technical and social infrastructure and essential services for commercial housing projects. Green and energy-efficient models are encouraged for social housing development.
Thirdly, based on their specific conditions, localities should have specific mechanisms and solutions to streamline administrative procedures for land allocation and approval, site clearance, and construction approval. They should also provide support and incentives for enterprises to invest in projects, thereby creating supply sources for the market and taking advantage of the social housing development incentives. It is essential to urge investors who have started construction to complete the projects soon and simultaneously request projects that have not yet selected investors to expedite the process.
It is proposed that Hanoi and Ho Chi Minh City take higher responsibility in leading and directing the attraction and acceleration of social housing development to ensure the achievement of the Proposal’s goals.
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