4 difficulties in attracting investment and developing social housing

According to Mr. Hung, it can be said that current laws have specific and detailed regulations for units to implement social housing investment.

According to the Ministry of Construction's data updated as of May 19, the country has completed 307 social housing projects with a scale of 157,000 units, a total area of 8 million ^m3 and is continuing to implement 418 social housing projects, including projects that have been approved for investment policy. Of these, 100/418 projects have been licensed and are under construction.

4 điểm khó khăn thu hút đầu tư, phát triển nhà ở xã hội - Ảnh 1. — Mr. Ha Quang Hung, Deputy Director of the Department of Housing and Real Estate Market Management (Ministry of Construction), speaking at the seminar

However, Mr. Hung also admitted that when monitoring the implementation of the 2014 Housing Law and decrees and circulars guiding investment in social housing, there are a number of policy groups that make it difficult for businesses and people to invest in and access social housing.

The first is the allocation and arrangement of land funds for social housing development. The Investment Law stipulates that investors of commercial housing projects and urban areas must reserve 20% of the land area in the project for social housing development, but this is a rather rigid regulation. Specifically, in projects with high investment rates, "golden land" locations or special features such as resorts, resorts on high mountain slopes... the allocation of this land fund for social housing development is not appropriate; or apartment projects with super high investment rates, 60 - 80 million/ ^m2 , the arrangement of low-income people, who only have to pay operating costs, is also difficult for them.

According to the figures we have, we currently only meet about 35% of the land fund area required for social housing.

Second, investment procedures, currently the law stipulates that the procedures for making social housing are no different from those for commercial housing, and there are even more steps. This comes from the State having preferential policies for social housing, so when designing policies, it requires solutions and tools to manage this project, leading to the investment procedures being prolonged.

Finding solutions to 'untie' social housing

Third is the group of policies to verify the subjects and conditions for receiving social housing. Specifically, according to the provisions of Article 49 of the Housing Law, there are 10 subjects, but there are no regulations as a basis to distinguish the conditions for receiving social housing in each case. Currently, social housing has the methods of buying and selling, renting and leasing. But regardless of the method, the subjects must meet the conditions: subjects, housing, income, place of residence, etc., leading to difficulties and delays in determining these subjects.

Fourth is the policy to support investors. Although the law stipulates exemption of land use fees, exemption of value added tax (VAT), corporate income of about 50%, preferential access to capital, etc., we find that the policies are not substantial. Because, the key point of the regulation is that even though there are incentives, when investors apply the incentives, they are not included in the selling price, so in essence, investors do not enjoy them, leading to failure to attract investors.

According to the representative of the Ministry of Construction, the issue of organizing and implementing social housing policies is still facing difficulties, specifically regarding financial resources allocated for social housing development.

"According to the report we received for the entire period from 2016 to 2021, we have only been able to arrange credit capital of VND3,163 billion out of the demand of about VND9,000 billion for the Social Policy Bank to provide loans to buyers. As for investors, we have not yet been able to arrange, recently there has been a package of VND120,000 billion to arrange for investors," said Mr. Hung.

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