Proposal for appointment of investment contractor for social housing project

The Ministry of Construction assessed that investment in this type of housing is still slow, mainly because the bidding to select an investor requires administrative procedures and takes a long time of 6-12 months.

Even when the project has an approved construction plan and is included in the local land use list, investors still take nearly 300 days to sequentially carry out the steps from approving the policy to signing the project contract. In Ho Chi Minh City, if they flexibly implement parallel procedures, they still take about 200 days.

Faced with this situation, the Ministry of Construction proposed a pilot program for provincial People's Committees to assign investors to social housing projects without bidding (ie designated bidding). Localities select investors based on proposals from the Department of Construction.

Proposal for investment in social housing project image 1 — The Ministry of Construction proposed appointing contractors for social housing projects. (Photo: ST)

According to the draft, within 30 days of the project announcement, if only one enterprise registers that meets the requirements, the Department of Construction will report to the Provincial People's Committee to assign this unit as the investor. When two or more enterprises register to implement the project, priority will be given to the unit with more experience, financial capacity, progress and resettlement compensation plan. In case the investors have the same capacity and meet the same criteria, the Provincial People's Committee will choose the enterprise that registered earlier.

The drafting agency also proposed that the selection of investors for social housing projects for the armed forces be under the authority of the Ministry of National Defense and the Ministry of Public Security. Similarly, the Vietnam General Confederation of Labor will be responsible for selecting investors for projects using trade union financial resources for workers and laborers.

In addition, the Ministry of Construction proposed the establishment of a National Social Housing Development Fund. The establishment of a National Social Housing Development Fund has also attracted public attention in recent days.

According to the draft of the Ministry of Construction, this is an extra-budgetary financial fund established by the Government with capital from the State budget and other legal capital sources. This fund will play an important role in direct investment to form a social housing fund, support loan interest rates without requiring mortgages, and at the same time create favorable conditions for businesses to invest in this segment as well as support policy subjects in accessing housing. The management and use mechanism of the fund will be specifically regulated by the Government to ensure efficiency and transparency in operations.

A series of proposals in the draft put forward by the Ministry of Construction include many important policies to create strong motivation for social housing development. In particular, the establishment of the National Social Housing Development Fund, the mechanism of assigning investors without bidding or simplifying planning and construction procedures, as well as special incentives for businesses participating in this development model, are expected to bring a large supply to the housing segment that is always expected by society.

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