Vietnam’s construction ministry has reported to the National Assembly and its deputies on the results of the resolution on questioning and specialized supervision.
The report highlighted the challenges faced by the real estate market, including prolonged scarcity of supply, an imbalanced product structure, and a lack of affordable housing for low and middle-income earners.
The ministry attributed these issues primarily to the difficulties faced by real estate businesses, especially in terms of investment procedures and accessing capital, bond issuance, and customer fund mobilization, resulting in delayed and halted projects.
Prolonged scarcity of supply in the real estate market.
To address legal obstacles, the National Assembly has amended three laws related to land, housing, and real estate business to harmonize regulations on investment, bidding, and real estate business. These changes have facilitated the resolution of difficulties and accelerated the progress of numerous real estate projects nationwide.
The Prime Minister also established a task force, led by the Minister of Construction, to review, monitor, and guide the resolution of challenges in implementing real estate projects across various localities.
The task force has engaged directly with eight localities: Hanoi, Danang, Ho Chi Minh City, Hai Phong, Can Tho, Dong Nai, Binh Thuan, and Binh Dinh, as well as real estate businesses, to gather reports, information, and project reviews, providing guidance and resolving obstacles.
The team has addressed 188 petitions and requests to resolve difficulties faced by localities, businesses, and citizens concerning 203 real estate projects.
Additionally, the task force sent 137 documents to the People’s Committees of provinces and cities and 14 documents to the Ministry of Agriculture and Environment and the Ministry of Finance, requesting the resolution of petitions within their jurisdiction and assigned tasks.
Apart from unblocking hundreds of projects to increase the real estate supply, since 2023, the Ministry of Construction has also submitted to the Government and the Prime Minister numerous solutions for market restructuring.
In April 2023, a proposal was submitted to the Prime Minister for approval to invest in at least one million apartments for low-income earners and industrial park workers during the 2021-2023 period.
As of now, there are 657 social housing projects nationwide, with a construction scale of over 597,000 apartments. Approximately 66,700 apartments have been completed, 124,300 are under construction, and 406,000 have been approved for investment.
To boost the supply of social housing, the government is currently submitting to the National Assembly a resolution to pilot a number of mechanisms and policies for social housing development. This includes shortening the time for investment procedures, construction, and price appraisal to help businesses save costs and reduce social housing prices.
The Ministry of Construction is reviewing standards, norms, and quotas related to social housing in terms of height, common area size, and building materials. They are also researching model designs suitable for each region to facilitate modular construction using steel and concrete structures to reduce costs and social housing prices.
Additionally, they are establishing a mechanism for the operation of state-owned enterprises specializing in social housing development and piloting the allocation of land without auctions or bidding to such enterprises.
The ministry is also drafting a resolution on pilot housing development with policies such as the application of investor designation for social housing projects, a shortened project implementation process of 1.5 years (down from 3 years), and an adjusted profit margin of 13% for investors, up from the current 10%.
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