According to the summary report quoted from the Report on Proposed Solutions for Effective Implementation of Project 338 - Investing in the Construction of 1 Million Social Housing Units by the Private Economic Development Research Board (Board IV), the implementation of Project 338 can develop in two directions.
In the first case, if the limitations and shortcomings pointed out in the Project cannot be overcome in a short time, the results of Project 338 may not meet the expected goals.
In the second case, if the limitations and shortcomings related to legal regulations and implementation are overcome, Project 338 is successful with at least 1 million social housing apartments by 2030, this supply will still not be equal to 50% of the actual demand.
Assessing from practice, Board IV said that in the process of implementing the project, there are many problems and limitations, including the regulation on reserving 20% of land fund in investment projects to build commercial housing and urban areas that is no longer suitable; the procedures for investment, construction, purchase and sale are still complicated and lengthy; the determination of house prices has not been clearly assessed; preferential policies for investors are not attractive enough; the rental area in the project causes waste; the subjects of buying social housing are still clearly regulated and some types of social housing are not specifically regulated in the Housing Law.
In addition, Committee IV pointed out some difficulties in implementing the project from the central to local levels such as insufficient budget allocation; capital sources to compensate for loan interest rates have not been arranged yet.
Localities have not really paid attention to developing social housing, have not identified land funds for building social housing in urban planning, lack of determination in reforming administrative procedures, and the role of state management levels in developing boarding houses for low-income people is not high.
On the business side, Committee IV also pointed out limitations such as some large real estate businesses and corporations in the recent past have only focused on developing urban areas, housing, and high-end resorts, but have not paid attention to investing in developing social housing for low-income people and industrial park workers.
Along with that, many manufacturing and business enterprises in industrial parks employ many workers and laborers but do not pay attention to housing for workers and laborers.
Committee IV proposed a series of solutions to implement the project of 1 million social housing units.
Accordingly, to successfully implement the project, Committee IV has put forward a number of proposals.
First, localities must allocate clean land for independent social housing projects instead of relying on the 20% land fund in commercial housing/urban area projects that are being/will be implemented in the area; comply with the principles of location and site, and at the same time publicly and transparently disclose information on the area, location, and characteristics of the land reserved for social housing development.
In addition, the Government also needs to assign the Ministry of Construction to review and assess the demand for social housing in each locality, focusing on developing social housing first for urban areas, especially special urban areas and locations with concentrated industrial parks.
To minimize construction costs for projects, localities need to focus on implementing them in three important stages.
Phase 1: Establishing clean, feasible and reasonable land fund for social housing development.
Phase 2: Site clearance, construction of technical/social infrastructure, bidding to select investors.
Phase 3: Complete investment, construction and land allocation procedures to implement social housing projects.
To effectively support credit for social housing projects, Committee IV proposed that the State Bank study the reasonable allocation of the VND120 trillion credit package to maintain a preferential interest rate of no more than 8.7% for investors for at least the first 2 years of implementing Project 338; maintain a stable preferential interest rate for social housing buyers below 8% for a minimum preferential period of 10 years.
At the same time, coordinate with relevant ministries and branches to review and strongly improve current conditions and procedures for accessing loans for social housing buyers; focus on the role of enterprises as guarantees for employees .
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