Upcoming Special Mechanism to Address Challenges in Social Housing Development

The Ministry of Justice recently convened an independent appraisal council meeting to review a draft resolution by the Government. This resolution aims to establish a special mechanism to address challenges and obstacles arising from legal provisions and breakthrough targets for social housing development.

During the meeting, Deputy Minister of Justice Nguyễn Thanh Tú emphasized that despite the existence of Resolution 201 on social housing, numerous practical difficulties have emerged, necessitating guidance from competent authorities for resolution. Therefore, the issuance of a new resolution under the framework of Resolution 206 is deemed essential to tackle legal hurdles. The scope of this new resolution must adhere to the principle of focusing solely on genuine challenges within the purview of the National Assembly and its Standing Committee, excluding matters under the routine purview of the Government and the Prime Minister.

Contributing to the appraisal, Lê Hoàng Châu, Chairman of the Ho Chi Minh City Real Estate Association, stressed the mandatory nature of 1/500 scale planning. No construction project can proceed without it, except for standalone structures with pre-approved designs.

Regarding planning supplementation and completion, the draft mentions cases of “absence of planning.” Mr. Châu clarified that this does not imply bypassing planning. Instead, the process should involve reviewing and reporting to provincial People’s Committees to determine land use planning targets and spatial, architectural, and landscape requirements. Subsequently, local authorities should be tasked with “expeditiously updating and integrating comprehensive planning for the area to ensure coherence.”

On land use fees for 20% commercial area, Mr. Châu argued that applying land price tables multiplied by land price adjustment coefficients is inappropriate. It is crucial to clarify that the “coefficient” here is specific and not the standard K1 coefficient, as using K1 would significantly increase land use fees for businesses compared to previous rates.

Regarding enterprise selection criteria in the draft resolution, Mr. Châu found them reasonable and encouraged the participation of capable enterprises.

Meanwhile, representatives from the Ministry of Agriculture and Environment agreed with the proposed land use fee calculation method. They asserted that land use fees should be based on “land price tables and adjustment coefficients.” Retaining the “adjustment coefficient” criterion is necessary and appropriate.

“Although some argue this provision may overlap with the new Land Law, it has been agreed upon and should remain in the draft to ensure current completeness,” stated the representative from the Ministry of Agriculture and Environment.