On the morning of February 22, in Hanoi, Minister of Construction Nguyen Thanh Nghi will preside over a national conference to implement the project “Investment in building at least 1 million social housing apartments (SHA) for low-income people, industrial zone workers during the 2021-2030 phase” by 2024 (abbreviated as the 1 million SHA project).
Focusing on overcoming obstacles
The above project was approved by the Prime Minister in Decision 338/QD-TTg dated April 3, 2023. In Resolution 01/NQ-CP dated January 5, 2024 on tasks, key solutions to implement the socio-economic development plan in 2024, the Government set a target to strive to complete 130,000 SHA apartments in 2024.
According to the latest report from the Ministry of Construction sent to the Prime Minister, as of February 5, the whole country has planned 1,249 land plots with a scale of 8,390 hectares for SHA construction, an increase of 5,031 hectares compared to 2020’s 3,359 hectares. The Ministry of Construction evaluated some localities concerned about planning SHA development land fund such as Dong Nai with 1,063 hectares, Ho Chi Minh City with 608 hectares, Long An with 577 hectares, Hai Phong with 471 hectares, and Hanoi with 412 hectares. However, there are still some localities that have not yet planned and allocated SHA land fund such as Ninh Binh, Ha Giang, Lai Chau, Nghe An, Ninh Thuan, Dong Thap…
Mr. Nguyen Van Sinh, Deputy Minister of Construction, said that with the attention and resolute direction of the Government, the Prime Minister, and the active participation of ministries, sectors, and localities, the development of SHA in recent times has achieved important results, and many localities have been proactive in attracting investment and promoting the construction of SHA apartments. Among them, it is necessary to mention provinces such as Bac Ninh with 15 projects and 6,000 apartments; Bac Giang with 5 projects and 12,400 apartments; Hai Phong with 7 projects and 11,600 apartments; Binh Duong with 7 projects and 6,500 apartments; Thanh Hoa with 9 projects and 4,900 apartments…
However, according to Mr. Sinh, some localities have a great demand for SHA but the investment is still very limited compared to the target of the 2025 project (Hanoi with 3 projects, 1,700 apartments, meeting 9%; Ho Chi Minh City with 7 projects and 4,996 apartments, meeting 19%; Da Nang with 5 projects and 2,750 apartments, meeting 43%…). Moreover, some localities have not commenced construction of SHA projects from 2021 until now, such as Vinh Phuc, Ninh Binh, Nam Dinh, Long An, Quang Ngai.
To achieve the target of completing 130,000 SHA apartments in 2024 according to Resolution 01/NQ-CP of the Government, according to the Ministry of Construction’s report that it is very difficult, which is a significant challenge. There are currently 108 SHA projects registered by localities to be completed in 2024 with a scale of 47,532 apartments.
Therefore, to achieve the set target, the Ministry of Construction said it would actively coordinate with ministries, sectors, and localities to focus on building guiding decrees for the Law on Housing, the Law on Real estate business, the Land Law (amended), the Law on Credit Organizations, and amending laws on taxes… to synchronize with the Law on Housing in 2023 on the mechanism of SHA policies. At the same time, to overcome difficulties in investment procedures, land use fees, planning, allocation of land fund, development of worker accommodation; to resolve difficulties, and effectively implement the 120 trillion VND support package according to Resolution 33/NQ-CP dated March 11, 2023 of the Government.
Obstacles in terms of mechanisms, policies, and lack of land fund have made the implementation of social housing construction slow. Photo: Van Duan
Localities “making efforts”
Currently, many localities are focusing on overcoming difficulties and obstacles to speed up the implementation progress as assigned by the Government.
Mr. Mac Dinh Minh, Deputy Director of the Hanoi Department of Construction, said that in 2023, the city issued a plan for SHA development in the 2021-2025 phase, with an estimated development of 5.7 million square meters of construction floor area. The city also proposed the Government to build 5 concentrated SHA zones, expecting to add about 2.5 million square meters of floor area to the SHA fund.
From 2021 to the end of 2023, Ho Chi Minh City has put into use 2 SHA projects with nearly 60,000 square meters of floor area, equivalent to 623 SHA apartments. In addition, the city also deployed 6 SHA projects with a scale of 3,956 apartments and 1 project of worker accommodation with a scale of 1,040 apartments.
According to the approved housing development plan of Ho Chi Minh City for the 2021-2025 period, the city set a target to develop 2.5 million square meters of SHA floor area, equivalent to 35,000 apartments. The Department of Construction set determination to complete all procedures by the end of 2025 to invest in the construction of this number of apartments, of which, strive to complete about 12,000 apartments with a total investment of over 11,500 billion VND.
Currently, the Department of Construction is reviewing the land fund in industrial zones, export processing zones, high-tech parks with the planned use of worker accommodation to urge investment in construction. At the same time, reviewing the land fund for development of SHA in commercial housing projects with a scale of 10 hectares or more, and urging investors to urgently build.
Two localities recognized by the Ministry of Construction to have made many efforts in SHA implementation are Dong Nai and Binh Duong.
Until now, the localities of Dong Nai province have submitted files of 11 projects, with a scale of about 20,000 apartments, of which 5 projects have been approved for investment, with a scale of about 9,000 apartments; the remaining 6 projects with a scale of about 11,000 apartments have not been approved. Among the 5 approved projects, the Department of Planning and Investment has implemented bidding documents to select investors for about 3,500 apartments in Bien Hoa City and Nhon Trach District.
According to the Dong Nai Department of Construction, with the determination set, Dong Nai province strives to complete the construction of 10,000 SHA apartments in the 2021-2025 phase. Currently, the whole province is implementing 3 SHA projects, housing about 2,000 workers. From now until the end of 2025, the province will have to build an additional 8,340 apartments.
Regarding the 1 million SHA project, Binh Duong is assigned a target of developing 86,877 apartments. However, with the forecast of increasing labor force, Binh Duong sets a target of building about 173,000 apartments, which is twice as high as the assigned target by the Government. Mr. Nguyen Van Loi, Secretary of the Provincial Party Committee of Binh Duong, requested the entire political system to urgently deploy investment, by 2030, to achieve the set target.
Request to reduce interest rates for the 120 trillion VND support package
Regarding the capital source of 120 trillion VND support package according to Resolution 33/NQ-CP dated March 11, 2023 of the Government, currently 27 localities have announced a list of 63 projects eligible for borrowing according to this Credit Program, with a loan demand of over 27,900 billion VND. Up to the present time, 5 SHA projects in 5 localities have been disbursed with a capital of about 416 billion VND. According to the assessment of the Ministry of Construction, the initial 120 trillion VND support package has achieved results, but the disbursement is generally slow.
To effectively implement 130,000 SHA apartments in 2024 along with promoting disbursement of the 120 trillion VND package to achieve better results, the Ministry of Construction said that it, together with ministries, sectors, and localities, would focus on building guiding decrees for the Law on Housing No. 27/2023/QH15 to overcome difficulties and obstacles on mechanisms and policies. The Ministry of Construction also proposed the State Bank to consider lowering the interest rate for loans in the 120 trillion VND support package; resolving difficulties and obstacles to effectively implement the 120 trillion VND support package according to Resolution 33/NQ-CP of the Government.
V.Duan
Mr. VO MINH HOANG, General Director of Ho Chi Minh City Social Housing Joint Stock Company:
Creating convenience for SHA buyers
To achieve the goals set by the Government, it is necessary to promptly resolve difficulties and obstacles in mechanisms and policies. Accordingly, allow SHA buyers to extend the installment payment period to 15-20 years, instead of just 5 years as at present, and extend preferential interest rates with the 120 trillion VND capital to offset interest rates.
In addition, there should be policies to encourage enterprises to invest in SHA development, raising the profit cap to 15% instead of 10%.
Mr. LE HOANG CHAU, Chairman of Ho Chi Minh City Real Estate Association:
Mobilizing additional social resources
According to the report of the Ministry of Construction, in 2020, the whole country only completed 8 SHA projects with 1,677 apartments, in 2021 completed 5 projects with 1,694 apartments, and in 2022 completed 6 projects with 1,300 apartments. Overall, the results of SHA development have not met the set plan.
S.Nhung editor note
