Streamlined Reform Proposal: Slashing Red Tape from 300 to 75 Days to Salvage Social Housing Plans

Streamlining processes will save hundreds of additional workdays

During the May 24 meeting, Minister of Construction Tran Hong Minh reported and explained issues related to mechanisms, policies, and special treatments regarding social housing development.

With an open and action-oriented mindset, the Minister candidly pointed out a series of obstacles in mechanisms, policies, and procedures hindering the goal of building 1 million social housing units by 2030.

From the beginning of the term, the goal of 1 million social housing units has been affirmed. However, in reality, the progress has been slower than expected.

According to the Minister, as of now, only about 623,000 units have been completed nationwide, with just 73,000 units finished and put into use, equivalent to approximately 15% of the target.

Specifically, in 2025, the target was 100,000 units, but only 15,600 units have been completed and nearly 20,000 units started construction, achieving about 44% of the plan.

Explaining this delay, Minister Tran Hong Minh frankly pointed out that the most significant “bottleneck” lies in mechanisms, institutions, and implementation procedures. We have policies but lack flexibility in enforcement; we have capital but low disbursement; we have investors but cumbersome procedures that discourage them.

One of the notable shortcomings is the lengthy investment procedure. According to the Minister, the process of bidding to select investors for a social housing project currently takes an average of 300 days – for just one procedure. Meanwhile, if the new reform proposals are applied, this time can be reduced to 75 days.

Similarly, if the procedures for appraising planning, technical design, and establishing and approving the total estimate are streamlined, it will save hundreds of additional workdays, enabling investors to implement projects more promptly.

The Minister also emphasized the importance of land funds and credit sources. He stated that localities must proactively allocate land funds for social housing development within their planning, especially when carrying out resettlement and land clearance.

A uniform price cannot be applied

Regarding credit sources, although the Government has assigned a limit of VND 120,000 billion (later increased to VND 145,000 billion), only a meager amount of over VND 3,000 billion, or less than 3%, had been disbursed as of April this year.

The Minister attributed this partly to overly strict borrowing conditions and a credit process unsuitable for the reality of social housing investment, which requires substantial government support.

Additionally, the issue of selling and renting prices for social housing attracted the attention of many delegates. While some suggested setting a floor price, Minister Tran Hong Minh opined that this would be impractical, as each locality has different conditions regarding materials, labor, and land funds.

Therefore, we cannot apply a uniform price across provinces and cities. The price of social housing must be determined based on the approved estimate at each locality, with a deviation not exceeding 10%.

To address the current bottleneck, the Ministry of Construction will thoroughly absorb the contributions from National Assembly delegates, improve mechanisms and policies by reducing procedures and shortening appraisal times, and issue specific guides to facilitate local implementation.

The “commander” of the construction industry pledged to work with the drafting subcommittee to promptly adjust the draft in the coming days, ensuring that the policy on social housing development truly enters life.

The Minister’s determined statement is a positive signal in the context of the urgent need for housing for low-income people, workers, and laborers in industrial zones.