At the seminar “Realizing the Dream of Social Housing” held at Tien Phong Newspaper on the morning of May 30, Mr. Pham Doan Tien, Director of the Investment Project Management Board of Corporation 319, Ministry of Defense, shared: “The business community is very pleased that the National Assembly has passed a resolution piloting several mechanisms and special policies to promote the development of social housing.”
Mr. Tien added that the maximum implementation time has been reduced to 75 days, cutting down approximately 200 days and reducing the processing time by 70% compared to the current regulations. This is a historic change. In developing social housing projects, we have approached many localities, and they have allocated land and transparently disclosed information for investors to access easily.
For example, Hai Phong and Da Nang have assigned land funds to the city’s Project Management Board or the Department of Construction, publicly disclosing project profiles and investment plans on their websites. This makes it easier for investors to access information and land, which is crucial for project development.
Mr. Pham Doan Tien, Director of the Investment Project Management Board, Corporation 319, Ministry of Defense
However, he pointed out that Hanoi is different. The districts that conduct land auctions have proactively allocated an equivalent of 20% for social housing development. For every 5 hectares, there is 1 hectare designated for social housing, and this land is infrastructure-ready. Utilizing this land is the key to alleviating the “thirst” for land funds, especially in Hanoi and Ho Chi Minh City.
“Both Hanoi and Ho Chi Minh City have a Department of Planning and Architecture in addition to the Department of Construction. The planning approval process could be streamlined by combining these steps, making it more convenient for businesses instead of having to go through two separate departments.
Recently, we encountered an issue with the Department of Planning and Architecture. We only requested to convert commercial housing to social housing, sacrificing economic interests. However, the conversion was not straightforward, and we had to seek their opinion again, even though the project for military personnel had previously been approved by the same department.
Similar to the green channel in taxation and customs, I believe that reputable enterprises developing social housing should also benefit from a green channel with expedited procedures and a shift towards post-inspection,” suggested Mr. Tien.
At the seminar, Mr. Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association, shared his insights: “Currently, the real estate prices in our country comprise several main factors: Land cost (site clearance and land use fee) accounts for about 25-50% of the total cost, depending on the location. Investment procedure costs account for about 5-10% of the total cost and can go up to 15% if the procedure is prolonged.
Capital cost accounts for about 5-10% of the total cost. Other costs include construction costs (equipment and machinery), which are currently rising due to escalating material prices and increasing labor costs.”
Mr. Nguyen Van Dinh, Vice Chairman of Vietnam Real Estate Association
Mr. Dinh added that the average price of commercial housing in the central area of Hanoi is currently at 50-70 million VND per square meter, while in the outskirts, it ranges from 30-40 million VND per square meter.
For social housing, the price fluctuates between 20-30 million VND per square meter, after excluding land costs and taxes. The government has issued a resolution to reduce costs and support social housing development. However, some challenges remain, such as verifying the income and housing status of the people.
“I believe that local authorities should have specific plans and assign clear responsibilities to facilitate the development of social housing segments. In particular, there is a need to improve administrative procedures, eliminate the process of appraising selling prices, and consider imposing price ceilings,” said Mr. Dinh.
Phuong Hoang
“Government Agency Leases Social Housing for Officials and Employees”
Introducing a revolutionary approach to staff accommodation – a game-changer for businesses and government agencies. We offer the opportunity to lease social housing, providing a stable and comfortable living environment for employees. This initiative fosters a sense of security and dedication among staff, knowing their accommodation needs are taken care of. Elevate your workforce’s morale and productivity with this innovative solution.
A Rush to Buy Affordable Condos in Danang
The release of 633 affordable housing units in the An Trung 2 residential area (in Son Tra district’s An Hai Nam ward) has sparked a rush of eager homebuyers. As soon as the Đà Nẵng Construction Department announced the sale of these much-needed apartments, a throng of prospective buyers flocked to the developer’s office, keen to secure their new home.
Four Social Housing Projects to be Completed This Year: Over 3,200 Units Soon to Hit the Market
“Mr. Ha Quang Hung, Deputy Director of the Department of Housing and Real Estate Market Management under the Ministry of Construction, shared this information at a workshop titled “Realizing the Dream of Social Housing,” hosted by Tien Phong Newspaper.”
Streamlining Permit Procedures: The Prime Minister’s Directive to Fast-track Construction Projects with Detailed 1/500 Planning
“The Prime Minister has instructed the Minister of Construction to reduce administrative procedures, business conditions, compliance costs, and resolution times for administrative procedures under the management of the Ministry of Construction before the 25th of each month.”
No Refund Policy for Landowners in Social Housing Projects
The proposed resolution does not outline a policy for the state to reimburse investors for their land use rights or agree to transfer these rights. Nor does it outline any advance compensation for resettlement and support. Instead, investors are permitted to include these costs as part of their project investment expenses.
