Policy breakthrough with social housing

Báo Đầu tưBáo Đầu tư12/03/2025

Vietnam has set a target of building 1 million social housing units by 2030, but to date, only 103 projects have been completed, with a total of 66,755 units, less than 7% of the target. This situation not only reflects the delay in implementing social housing projects, but also shows persistent bottlenecks in policies and administrative procedures.


Vietnam has set a target of building 1 million social housing units by 2030, but to date, only 103 projects have been completed, with a total of 66,755 units, less than 7% of the target. This situation not only reflects the delay in implementing social housing projects, but also shows persistent bottlenecks in policies and administrative procedures.

The public is not too surprised or pressured by the above figures announced by the Ministry of Construction, while the impatient person is probably the Prime Minister.

At the recent National Conference on Social Housing chaired by Prime Minister Pham Minh Chinh, the head of the Government raised the question that social housing has been discussed a lot, but the implementation process has not been effective, is it because "the government does not dare to assign work?".

Looking back at the number of social housing projects being implemented, it can be seen that, of the 645 social housing projects being implemented with a scale of 581,218 units, up to 70.2% are at the stage of approving investment policies.

We cannot be happy with the above figures, because implementing social housing projects is a long and arduous journey for many businesses.

In Ho Chi Minh City, many social housing projects were once launched with great fanfare, but were then quietly surrounded by corrugated iron. These include the Le Thanh Tan Kien Project and the Project to Build Workers’ Accommodation in Linh Trung II Export Processing Zone. One of the main reasons is that the licensing process, planning approval, and conversion of land use purposes… all take a lot of time.

As a result, businesses are impatient, people cannot buy houses, and public opinion is constantly talking about the real estate market being distorted, when apartments costing tens of millions of VND/m2 are "extinct". It is possible that this is also one of the reasons why many young people are afraid to get married, the birth rate is decreasing, because "settling down is the way to have a career" and when children grow up, they will not be able to live with their parents forever in rented rooms of only 5 - 10 m2.

Investing in social housing is investing in social development. Each completed social housing project not only solves housing needs, but also creates a cash flow of thousands of billions of dong circulating in the economy, from investment in construction, materials, labor, etc. to accompanying services.

Hundreds of thousands of social housing units have been registered by businesses. However, solving the social housing problem does not only depend on businesses, but also requires changes in policies, processes, and procedures...

Previously, the measure of social housing development was an annual target assigned by the Prime Minister to localities, in which businesses registered to do it and the government committed to support. However, the results were not as expected.

Now, the Prime Minister has sent out a strong message when applying a similar indicator to the Key Performance Indicator (KPI). Thus, local authorities will have to "stand shoulder to shoulder" with businesses to quickly resolve procedures. Notably, the goal of cutting at least 30% of administrative procedures in 2025 will also be applied so that - as the Prime Minister noted - "it is important that projects must be done quickly and promptly". That means, instead of taking 3 years to complete procedures, it will now be reduced to 1 - 2 months.

This is very practical, because if the project is prolonged, compliance costs will increase, causing waste of time, effort, and money. Moreover, those in need will have to wait 5 years, even 10 years to have social housing and the efficiency is very low.

Recently, the Ministry of Construction assigned specialized units to research, review regulations and propose solutions to implement the orientation of forming the National Housing Fund. This is a task that needs to be implemented soon, if done well, it can help turn around the housing market situation. The Housing Law has stipulated the structure of forming financial resources for housing development, but has only raised the issue of piloting the establishment of the Social Housing Development Fund. Although it is a pilot, this fund requires preferential credit mechanisms from the state budget through refinancing or interest rate subsidies. Therefore, there needs to be stronger credit support policies, reducing loan interest rates or extending loan terms to help the National Housing Fund become a "midwife" for social housing projects.

Social housing now cannot remain a story “on paper” or just general slogans, but requires strong reforms in management thinking, preferential policies and administrative procedures. Only when there is real movement in the entire political system, “clear people, clear work, clear progress, clear responsibilities” - as the Prime Minister has directed - will spacious social housing areas soon appear, thereby meeting and ensuring the right to housing for all people living in a sustainably developed society.



Source: https://baodautu.vn/batdongsan/dot-pha-chinh-sach-voi-nha-o-xa-hoi-d251470.html

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