“Equal Housing for All: A Plea to End the Distinction Between Social and Commercial Housing”

A National Assembly monitoring delegation has met with the Hanoi People’s Committee regarding the “Implementation of policies and laws on real estate market management and social housing development from 2015 to the end of 2023.”

Investing in 4 independent social housing projects, approximately 1 million sq. m of floor space

According to Mr. Duong Duc Tuan, Vice Chairman of the Hanoi People’s Committee, during the 2015-2023 period, the average growth rate of real estate business activities reached approximately 3.16% per year. During this phase, approximately 466 projects were completed, equivalent to about 29.3 million sq. m of floor space, and 598 projects are currently being implemented, equivalent to about 106.6 million sq. m of floor space. The average floor space per person by the end of 2020 reached approximately 27.25 sq. m/person, exceeding the target of the city’s housing development program approved by the Prime Minister. By the end of 2023, it reached approximately 28.6 sq. m/person, surpassing the target according to the city’s 2023 housing development plan (approximately 28.2 sq. m/person)

The Vice Chairman of the Hanoi People’s Committee affirmed that social housing development has been a focus, with 30 completed projects, providing about 1.66 million sq. m of floor space, and 58 projects are being implemented with about 4 million sq. m of floor space and 60,480 apartments. There are 83 land plots with a total land area of about 43.58 ha in 48 commercial housing and urban area projects that must allocate 20% to 25% of the land fund for social housing construction as prescribed.

To meet the targets assigned in the Government’s Project “Investing in constructing at least 1 million social housing apartments for low-income people and industrial zone workers in the period of 2021-2030” and implementing social housing investment after 2030, the Hanoi People’s Committee has focused on directing the establishment and approval of investment policies for 4 independent (concentrated) social housing projects with about 1 million sq. m of floor space, serving as a basis for organizing bidding to select investors according to regulations.

The city has also reviewed and supplemented about 15 new land areas with large-scale infrastructure to invest in constructing concentrated social housing projects with synchronous technical and social infrastructure (about 2,000 apartments/area), focusing on arranging 2-3 land areas for constructing worker housing in areas near industrial zones.

However, according to Mr. Tuan, the real estate supply is still relatively scarce, and new real estate products being offered for sale are mainly projects approved in the previous phase. The condominium segment being offered for sale mainly consists of middle and high-end apartments, while the affordable segment currently accounts for a very small proportion. The progress of real estate project implementation is slow…

Mr. Tuan also mentioned that the planning and allocation of land funds for social housing construction have not met the city’s significant demand for social housing. The planning architecture indicators for social housing in concentrated social housing areas are very low compared to the project scale due to population size restrictions. The implementation of projects investing in the construction of worker housing is still slow. Mechanisms and policies to attract investment in social housing projects are not truly appealing. The process and procedures for selecting investors for social housing construction projects through bidding are time-consuming…

Proposing not to differentiate between social housing and commercial housing

Hanoi proposes that the central ministries and sectors, in the process of developing guiding documents for the implementation of the Land Law, Bidding Law, Housing Law, etc., provide specific guidance on the transition for cases where projects have been approved by the City People’s Committee for investment policies to serve bidding to select investors based on the 1/5000 urban planning subdivision.

The city also proposed issuing separate regulations to shorten the procedures, processes, and time for selecting investors through bidding for social housing construction projects. They also suggested issuing mechanisms and policies to attract investment in social housing projects and support policies for people eligible for social housing. Additionally, they proposed mechanisms and policies to promote the development of social housing for rent, invested with state budget capital…

Analyzing and clarifying some issues, Mr. Tran Sy Thanh, Chairman of the Hanoi People’s Committee, proposed the need for a social housing policy, unifying that there should be only one type of housing (not distinguishing between social housing and commercial housing) according to the quality standards set by the Ministry of Construction so that people can access the same quality and services.

Concluding the meeting, Mr. Nguyen Duc Hai, Vice Chairman of the National Assembly, emphasized that at the 7th session (May 2024), the National Assembly passed the Law on the Capital (amended) with many specific mechanisms and policies on the organization of the government, budget, and investment management and many breakthrough regulations on decentralization and delegation of authority to Hanoi. Mr. Hai requested that Hanoi focus its time, human resources, and intelligence and dare to think and act to effectively implement the socio-economic development plan and the Law on the Capital. He also asked Hanoi to complete the two assigned tasks of the capital’s planning and report to competent authorities to remove difficulties and obstacles for the real estate market and social housing development.