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 for the Ministry of Construction 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 a scale of 561,816 units. Out of these, 79 projects have been completed, providing 40,679 units; 128 projects have been licensed and started construction with a scale of 111,688 units; and 412 projects have been approved in principle with a scale of 409,449 units.
In the first six months of 2024, eight projects were completed (four projects fully completed and four partially completed) with 3,136 units; five projects were licensed for construction with 8,468 units; and nine projects were approved with 8,795 units.
The target set by the government in Resolution No. 01 dated January 5, 2024, aims to complete approximately 130,000 units by 2030. With eight projects and approximately 3,100 units completed in the first half of 2024, there is a need to complete nearly 100,000 more units by the end of the year to meet this target.
The Ministry of Construction has also set the goal of completing all projects that have started construction by the end of 2024. This is a significant progress pressure and requires the involvement of various levels of government, ministries, sectors, and local authorities.
Interest rates for social housing loans may decrease by 3-5%
In response to a question about the request to cut the support package of VND 120 trillion and its implementation and disbursement, the Deputy Minister informed that only 34 out of 63 provinces have announced 78 eligible projects for preferential loans on their electronic information portals. Banks have disbursed VND 1,344 billion, including VND 1,295 billion for investors of 12 projects and VND 49 billion for home buyers in five projects.
To implement Resolution No. 33 of the Government, a credit package of about VND 120 trillion has been deployed for investors and home buyers of social housing and worker housing projects. The interest rates are 1.5-2% lower than the average medium and long-term lending rates of state-owned 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 will remain at 1.5-2%). The Ministry of Construction has agreed with the proposal of the State Bank 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 lending in 2024.
At the regular Government meeting this morning, the Prime Minister agreed with the proposal of the State Bank and requested the early completion and submission of the resolution on adjusting the content of 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 Directive No. 34-CT/TW dated May 24, 2024, to urge and promote the development of social housing and implement the goals of the Scheme in August 2024. It is suggested that the State Bank direct and encourage more commercial banks to participate in lending under the VND 120 trillion support package and relax credit conditions. This will enable banks to extend the loan term and provide more favorable conditions for buyers, with a loan term of 10-15 years and an interest rate that is 3-5% lower than that of regular commercial banks. This will support low-income earners and industrial park workers in accessing social housing.
For local authorities, it is crucial to urgently plan and effectively implement the tasks and solutions set out in Directive No. 34 of the Central Committee. Secondly, they should direct and inspect the investment in social housing construction, ensuring the quality and availability of 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 the specific conditions of each locality, there should be mechanisms and specific solutions to streamline administrative procedures for land allocation and approval, site clearance, and construction approval. This will facilitate and encourage enterprises to invest in projects, thereby creating supply for the market and taking advantage of the social housing development incentives. Local authorities should also focus on monitoring and urging investors who have started construction to complete and put houses into use promptly, while also expediting the selection of investors for projects that have not yet started construction.
It is requested that Hanoi and Ho Chi Minh City enhance their leadership and direction in attracting and accelerating the construction of social housing to ensure the achievement of the Scheme’s objectives.
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