Ministry of Construction proposes to increase profits of social housing investors to 13%

(Dan Tri) - The Ministry of Construction is drafting a proposal that investors of social housing and housing for the armed forces for sale, lease-purchase, or rent enjoy a maximum profit of 13% of the total construction investment cost.

The Ministry of Construction is seeking comments on a draft resolution of the National Assembly on piloting a number of specific mechanisms and policies for social housing development.

In the draft, many contents are being proposed. For example, assigning investors to social housing projects without bidding to select investors. In cases where the land fund for building social housing in commercial housing projects or urban areas has been approved in principle and handed over to the State but has not been handed over or has been handed over but the investor has not been selected to build social housing, then based on the investor's request, the provincial People's Committee will assign the investor of that commercial housing project or urban area to directly build social housing.

Social housing projects do not have to carry out procedures for investment policy approval and procedures for appraisal of feasibility study reports by specialized construction agencies.

Assigning investors to projects to invest in building houses for the people's armed forces under the authority of the Ministry of National Defense and the Ministry of Public Security. Assigning investors to social housing projects to invest in building houses using financial resources from the Vietnam General Confederation of Labor.

If the locality is unable to balance the budget for compensation, support, resettlement, investment, and connection of technical infrastructure systems outside the scope of the social housing project, the provincial People's Committee shall propose to the National Social Housing Development Fund Management Agency to support capital for implementation.

A social housing project in Hanoi (Photo: Tran Khang).

Notably, the draft also proposes that investors of social housing and housing for the people's armed forces for sale, lease-purchase, or lease shall enjoy a maximum profit of 13% of the total construction investment cost for the social housing construction area of ​​the project (the current regulation is 10%).

Previously, at the conference to promote social housing development held on March 6, chaired by Prime Minister Pham Minh Chinh, the leader of the Urban Infrastructure Development Investment Corporation (UDIC) also said that currently, social housing development enterprises are limited to profits of no more than 10%.

In the current conditions, supplies, raw materials and labor are constantly fluctuating, procedures are lengthy, leading to increased costs due to prolonged project implementation, resulting in unsecured profits. Therefore, this representative recommended that the Prime Minister consider and adjust incentive mechanisms such as raising the standard profit from 10% to 15-20%.

The Ho Chi Minh City Real Estate Association (HoREA) has also proposed that the Government consider increasing the standard profit for social housing project investors to 15%.

Source: https://dantri.com.vn/bat-dong-san/bo-xay-dung-de-xuat-tang-loi-nhuan-cua-chu-dau-tu-nha-o-xa-hoi-len-13-20250321143052007.htm