16 social housing projects have signed credit contracts to borrow capital from the 120,000 billion VND package.
Up to now, nationwide, 36/63 provincial People's Committees have issued documents announcing social housing projects eligible for preferential loans on the electronic information portal (16 projects have signed credit contracts for loans under the 120,000 billion VND Program).
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| Social housing areas at Vinh Diem Trung Urban Area Project, Nha Trang City, Khanh Hoa Province. |
The Ministry of Construction has just responded to the petition of Khanh Hoa voters on the proposal to study and have policies to encourage and create conditions for businesses to invest in building social housing, housing for workers and laborers at reasonable prices to create conditions for workers to rent or buy to stabilize their lives.
Accordingly, the Ministry of Construction said that on November 27, 2023, at the 6th session, the 15th National Assembly passed the Housing Law No. 27/2023/QH15 (effective from August 1, 2024). On July 26, 2024, the Government issued Decree No. 100/2024/ND-CP detailing a number of articles of the Housing Law on the development and management of social housing (effective from August 1, 2024).
Specifically, the Housing Law 2023 and Decree No. 100/2024/ND-CP have stipulated social housing policies with many new regulations to encourage, promote investment, development and reduce selling prices, hire-purchase prices, and rental prices of social housing so that low-income people and workers can access to buy, hire-purchase, and rent houses to stabilize their lives such as: choosing investors of social housing projects; incentives for investors of social housing construction investment projects for sale, hire-purchase, and rent; simplifying conditions for buying, hire-purchasing, and renting social housing; specifically stipulating a maximum profit of 10% of the total construction investment cost for the area of social housing construction to ensure that the selling price and hire-purchase price of social housing are suitable for low-income people and workers; for social housing rental prices, the investor and the lessee will agree according to the price frame prescribed by the Provincial People's Committee...
Specifically, Clause 2, Article 85 of the 2023 Housing Law stipulates that investors in social housing construction projects for sale, lease-purchase, or lease are entitled to the following incentives:
Exemption from land use fees and land rent for the entire land area of the project; the investor does not have to carry out procedures for determining land prices, calculating exempted land use fees and land rent, and does not have to carry out procedures for requesting exemption from land use fees and land rent, except for the case specified in Point d of this Clause;
Enjoy preferential value added tax and corporate income tax according to tax laws;
Enjoy a maximum profit of 10% of the total construction investment cost for the social housing construction area;
Up to 20% of the total residential land area within the project area that has invested in building technical infrastructure systems is reserved for investment in building business, commercial, and commercial housing facilities. The investor of a social housing construction investment project is allowed to account separately, not include the investment costs for building the business, commercial, and commercial housing facilities in the cost of the social housing, and is entitled to all profits from the area of the business, commercial, and commercial housing facilities; in the case of investing in building commercial housing, the investor must pay land use fees for the area of the commercial housing construction in accordance with the provisions of the law on land.
In case the detailed planning scheme of a social housing construction investment project approved by a competent state agency does not allocate a separate land fund for the construction of service and commercial business facilities and commercial housing within the project, the project investor is allowed to reserve a maximum of 20% of the total floor area of the project for service and commercial business. The social housing construction investment project investor is allowed to account separately, is not allowed to include the investment cost of constructing this service and commercial business area in the cost of the social housing and is entitled to enjoy all the profits from this service and commercial business area;
To borrow capital at preferential interest rates; in the case of building social housing for rent, to borrow capital at lower interest rates and longer loan terms than in the case of building social housing for sale or rent-to-own according to the regulations of the Prime Minister in each period;
Supported by the Provincial People's Committee to connect the project's technical infrastructure system with the regional technical infrastructure system, ensuring synchronization of social infrastructure within and outside the project scope...
According to the Ministry of Construction, the determination of selling prices, lease-purchase prices, and rental prices of social housing is stipulated in Article 87 of the 2023 Housing Law and specific instructions in Articles 31, 32, 33 and 34 of Decree No. 100/2024/ND-CP of the Government detailing a number of articles of the Housing Law on the development and management of social housing, in which investors are not allowed to include the above incentives in the selling prices and lease-purchase prices of housing, ensuring that social housing prices are suitable for the majority of urban residents.
Regarding preferential credit for investors, the Ministry of Construction said that recently, the Government and the Prime Minister have directed ministries and branches to study capital sources to support and promote the development of social housing, specifically the capital source of 120,000 billion VND according to Resolution No. 33/NQ-CP dated March 11, 2023 of the Government, proactively balanced by commercial banks and budget capital through the Bank for Social Policies.
Up to now, nationwide, 36/63 provincial People's Committees have issued documents announcing projects eligible for preferential loans on the electronic information portal (16 projects have signed credit contracts for loans under the 120,000 billion VND Program with a total credit commitment of 4,200 billion VND, outstanding debt of 1,727 billion VND).
“The above mechanisms and policies have ensured incentives, encouragement, and created conditions for investors and businesses to participate in investment and development to create a source of social housing supply,” said the Ministry of Construction.
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