On December 16, information from the Department of Construction of Dong Nai province revealed that the Provincial People’s Council has issued regulations on support mechanisms for social housing development in the area.
A social housing complex in Bien Hoa city, expected to be completed in 2024
Accordingly, Dong Nai province will provide a 20% investment subsidy for the construction of technical infrastructure (excluding technical systems within the building) for social housing projects, housing for the armed forces, and worker dormitories in industrial parks that are not funded by public investment capital.
The funding source for this support will be allocated from the provincial budget and other legal capital sources.
To be eligible for this support, projects must ensure timely implementation and progress. The subsidy will be considered after the construction is completed and verified by the competent authorities. Developers must not include these support amounts in the selling or rental prices of the houses.
Regarding the progress of social housing construction, from 2021 up until now, only 1,660 social housing units have been completed in Dong Nai province. This number falls significantly short of the target set by the Provincial Party Committee and the Provincial People’s Council’s resolutions, which aim for the construction of 10,000 social housing units during the 2021-2025 period.
According to the Dong Nai Department of Construction, the slow implementation is attributed to inadequate and unreasonable allocation of land funds for social housing projects in the past, time-consuming procedures for investor selection, frequent changes in social housing incentive policies, and an unattractive VND 120,000 billion credit package, resulting in a low number of projects being commenced and completed.
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