Many localities have a great need for social housing but the number of projects started is still low.
Today (March 6), the Prime Minister will chair a national conference to remove difficulties and obstacles and promote the development of social housing. The conference will be connected online with 63 provinces and cities.
The number of projects started is still low.
Previously, on February 27, Prime Minister Pham Minh Chinh signed Decision No. 444 assigning targets for completing social housing in 2025 and the following years until 2030 for localities to add to their socio-economic development targets. Accordingly, the social housing target that localities must complete in the 2025-2030 period is 995,445 apartments, of which 100,275 apartments in 2025 alone.
According to the report of the Ministry of Construction, from 2021 to present, the whole country has 655 social housing projects implemented with a scale of 593,428 apartments, of which 103 projects have been completed with a scale of 66,755 apartments; 137 projects have started construction with a scale of 114,618 apartments; 415 projects have been approved for investment with a scale of 412,055 apartments. With the number of apartments started and completed, up to now, it has reached about 42.38% of the target of the Project to build at least 1 million houses for low-income people and workers in the period of 2021 - 2030 (Project). Some localities have actively started and completed projects, achieving a high rate compared to the Project's target by 2025; However, some localities have a large demand for social housing but the number of projects started is still low. Regarding the implementation of credit capital of the 120,000 billion VND Program, up to now, 37/63 provincial and municipal People's Committees have sent documents or announced on the electronic information portal the list of projects participating in the program with a total of 90 projects, the total disbursement amount is 2,845 billion VND including: 2,580 billion VND for investors in 20 projects and 265 billion VND for home buyers in 15 projects. The disbursement rate is assessed to be very low.
According to the Ho Chi Minh City Department of Construction, from 2021 to now, the city has completed and put into use 5 social housing projects, with a scale of 2,377 apartments; 1 worker accommodation project (partially completed) with 368 apartments. It is expected that in 2025, the city will have 4 completed projects with a scale of 2,874 apartments. To remove difficulties and obstacles for the projects, the Ho Chi Minh City People's Committee established a Working Group to resolve procedures for investment in social housing construction. Ho Chi Minh City has organized a conference to promote investment in social housing construction in Ho Chi Minh City until 2030; worked with 11 enterprises and the City Labor Federation. Enterprises registered to invest in the construction of about 40,000 apartments.
In recent times, Binh Duong province has had 9 projects eligible for sale with a scale of about 80 hectares, equivalent to 14,788 apartments, with a floor area of over 1 million square meters. However, in reality, only about 6 projects have residents living in them, the remaining projects are stuck with some procedures, mainly the preferential loan package of 120,000 billion VND.
Le Thanh social housing apartment building, Binh Tan district, Ho Chi Minh City Photo: Tan Thanh
Pilot special mechanism
According to Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), HoREA has sent a document to the Prime Minister proposing 10 solutions for social housing development.
In particular, it is recommended to issue a pilot resolution on specific mechanisms and policies for social housing development with 5 mechanisms including: Establishing a national housing fund to develop low-cost housing; allowing the Department of Construction to decide on investment policies for social housing projects on agreed land; Provincial People's Committees appointing investors for social housing projects on state-managed land; Vietnam General Confederation of Labor appointing investors for social housing projects using trade union capital; Ministry of National Defense and Ministry of Public Security appointing investors for social housing projects on planned defense and security land. Adjusting the land use coefficient and population size for social housing projects to a maximum of 1.5 times compared to approved construction standards and norms. Recommending the State Bank to abolish Clause 3, Article 77 of Decree 100/2024/ND-CP so that the Bank for Social Policies can provide preferential loans. Propose the Ministry of Construction and the State Bank to submit to the Prime Minister a decision on the lending interest rate for poor households of 4.7%/year, applicable to buyers and renters of social housing at the Bank for Social Policies to avoid the difference in preferential interest rates between subjects. Propose to reduce VAT and corporate income tax for social housing for rent. Supplement the Law on VAT, the Law on Corporate Income Tax, stipulating a VAT rate of 3% and a corporate income tax rate of 6% for social housing for rent...
To remove difficulties and obstacles, Deputy Minister of Construction Nguyen Van Sinh said that it is necessary to strictly and effectively implement Directive No. 34-CT/TW dated May 24, 2024 of the Secretariat as well as the directions of the Government and the Prime Minister. The Ministry of Construction will continue to review legal documents related to social housing policies to remove difficulties and obstacles arising in practice. The Ministry of Construction also proposed that the Prime Minister assign the Ministry to study and preside over the development of a pilot Resolution on specific mechanisms and policies on social housing development, including the policy of selecting investors for investment projects without bidding and a number of policies to remove obstacles in social housing development.
For the State Bank of Vietnam, it is necessary to focus on directing, guiding, and urging banks participating in the program to promote lending and quickly disburse the VND 120,000 billion credit package to support businesses to complete projects soon. Review and continue to expand the preferential lending program for individuals and households to buy, rent, and hire-purchase social housing according to the social housing policy.
Binh Duong: 42,514 apartments to be completed by the end of 2025
According to the People's Committee of Binh Duong province, the province is currently allocating additional land funds to develop housing for workers. The province's goal is to develop 160,325 social housing units by 2030. Of these, 155,289 are apartments and 5,036 are townhouses. Binh Duong continues to develop new industrial parks and clusters, requiring investors to be responsible for preparing land funds to build social housing. The province has proposed four specific solutions to develop social housing and workers' housing, including: Solutions on land funds; planning - architecture; science - technology in social housing development and capital sources. It is expected that by the end of 2025, the target of 42,514 units will be completed. The Provincial People's Committee has issued a decision to strengthen the Steering Committee to resolve difficulties and obstacles for enterprises and in the implementation of real estate projects in the province to speed up ongoing social housing projects.
Mr. Le Hoang Chau, Chairman of HoREA:
The market is out of phase in terms of segmentation.
The real estate market is facing three major difficulties. One is the lack of housing supply due to many project supply sources being entangled in legal issues. In Ho Chi Minh City, in the period of 2015-2023, there were 86 real estate and commercial housing projects that were suspended or not implemented with a land use scale of up to 964 hectares and 54,051 apartments. Second, the market is out of phase in terms of segments: There is a lot of high-end housing but there is a lack of affordable commercial housing and especially a lack of social housing.
Finally, housing prices are constantly increasing and are anchored at high prices, beyond the financial capacity of the majority of middle-income people.
Mr. Le Huu Nghia, General Director of Le Thanh Production and Trading Company Limited:
Need help completing legal procedures
The company's Tan Kien social housing project in Binh Chanh district, Ho Chi Minh City is currently facing legal problems that have not been resolved. We hope to soon have a license to implement the project.
Establishing a national housing fund, including a social housing development fund to coordinate capital sources to promote the development of low-cost housing, including social housing and low-cost commercial housing, is actually not as urgent as providing early support for businesses to complete legal procedures to implement projects because the longer it takes, the more costly it will be.
Mr. Nguyen Hong Luong, Chairman of the Board of Directors of Ho Chi Minh City Social Housing Development Investment Joint Stock Company:
"Paving the way" for businesses to start up quickly
Through the implementation, many experts and lower-level leaders have not been bold enough to thoroughly handle and support enterprises to implement quickly, so more detailed and specific instructions are needed. There needs to be strong direction from higher-level leaders so that enterprises with available land funds and sufficient conditions will immediately participate in building social housing. It is necessary to "pave the way" for them to start, do it right, and do it quickly.
Currently, Ho Chi Minh City also has a lot of clean land funds. If we hand over to qualified enterprises to implement first, and supplement small procedures in parallel, it will be quick and early.
Source: https://nld.com.vn/go-rao-can-de-phat-trien-nha-o-xa-hoi-196250305221044421.htm
Comment (0)