The city aims to have about 12,000 more social housing units by 2025, but is facing difficulties related to land funds, procedures, preferential policies and financial mechanisms.
The City People's Committee recently announced that from the beginning of 2021 to the end of April 2023, Hanoi has completed four social housing projects with about 5,300 apartments. Currently, 40 projects are being implemented, of which 18 projects are expected to be completed in the 2021-2025 period with about 870,000 m2 of floor space and more than 12,000 apartments; 22 projects are expected to be completed after 2025 with about 22,400 apartments.
The city has assigned specialized agencies to prepare investment proposal documents for two investment projects to build a concentrated social housing area in Tien Duong commune, Dong Anh district and is considering continuing to implement the remaining three projects in Co Bi commune, Gia Lam district; land plot CT1-5 under the S5 urban subdivision planning in Ngoc Hoi, Dai Ang, Lien Ninh communes, Thanh Tri district and Khanh Ha commune, Thuong Tin district; and in Dai Mach commune, Dong Anh district. It is expected that when completed, the five projects will add about 2.5 million square meters of social housing floor space to the city's social housing fund.
However, Hanoi believes that there are still some problems in the construction of social housing. Regulations on land allocation for social housing development in Decree 100 of 2015 (amended and supplemented in Decree 49/2021) are still inadequate. Many commercial housing development projects in suburban areas are not suitable for social housing (such as Ba Vi, Ung Hoa, My Duc). There are commercial housing projects with a scale of 2 hectares but with a small land area for housing construction. According to regulations, 20% of the total land area invested in technical infrastructure must still be reserved for social housing construction.
The law has not yet regulated the use of land use funds to replace 20% of land fund in commercial housing projects to develop social housing with a scale of less than 10 hectares, while the city's financial resources to invest in building social housing from the budget are still limited.
More than 1,300 people drew lots to buy 149 social housing units at the NHS Trung Van project on the morning of May 20. Photo: Pham Chieu
To speed up the progress of investment in social housing construction, the city believes that there should be regulations to shorten the time for selecting investors to build housing in general and social housing construction investment projects in particular. In case of selecting investors through bidding, there should be separate bidding process regulations, simplifying and shortening the procedures and implementation time for social housing.
The 2014 Housing Law and Decree 49 stipulate that investors of social housing projects are supported by the provincial People's Committee with all or part of the investment costs for the construction of technical infrastructure systems within the scope of the social housing construction project. However, the law and decree have not yet specified the list of items and technical infrastructure works in social housing construction investment projects supported by the state budget, as a basis for state agencies to invest or support investment and development of social housing.
Based on the above reality, Hanoi proposed that the Ministry of Construction report to the Government to authorize the city to proactively arrange replacement land funds for social housing construction for these projects in independent (concentrated) social housing areas in the area; delegate authority to the city to adjust the planning of industrial parks and export processing zones to supplement land funds for social housing construction for rent.
Social housing area CT3, CT4 in Kim Chung commune, Dong Anh district. Photo: Xuan Hai
On the afternoon of May 18, at the dialogue between Hanoi Chairman Tran Sy Thanh and workers, the representative of the city's trade union said that currently, three industrial parks, Thach That - Quoc Oai, Thang Long (Dong Anh district), Phu Nghia (Chuong My district), have housing projects that meet nearly 20% of workers' accommodation needs. The remaining industrial parks do not have housing for workers. Therefore, about 80% of workers are having to rent accommodation in residential areas with limited space, poor security and environmental sanitation, and high rents, electricity and water bills.
The Chairman of the City People's Committee said that the city will try to speed up the progress of projects so that during this term, a number of social housing projects can be started as planned to meet the needs of workers. He said that the city wants to start construction of a number of housing areas in late 2023 and 2024, synchronously, centrally, and geographically suitable for workers to access. "Hanoi will also have its own policies to make it feasible for workers with an average salary of 7 million VND to access social housing," Mr. Thanh said.
Vo Hai
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