Part 4: Open mechanism to mobilize resources

The province’s goal is to build 13,000 social housing units for workers and low-income earners by 2030. But to make this goal a reality, experts say it is necessary to create a driving force from policies to increase attractiveness and mobilize maximum resources.

To achieve the goal of developing social housing, in the coming time, the province will resolutely force investors to reserve 20% of the land fund of commercial housing projects and new urban areas for social housing. In the photo: Commercial housing project in The Light City urban area (Ward 12, Vung Tau City).

There must be preferential policies.

At the workshop “Developing social housing - Business perspective” jointly organized by the Ministry of Construction, Vietnam Construction Association and Binh Duong Provincial People's Committee in Thu Dau Mot City on March 31, construction experts mentioned many obstacles that are hindering the implementation of the goal of ensuring housing for low-income people and workers.

Most opinions agree that preferential economic policies and administrative procedures in establishing and approving social housing projects and worker housing need to be more effective and simpler to maximize resource mobilization.

Professor-Doctor of Science Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, said that the key policy for social housing development needs to be carefully considered for adjustment, but it is not beyond the method of finding financial resources and reasonable land resources to boost the supply of low-cost housing.

Accordingly, it is necessary to put the group of people who want to access social housing at the center of the policy, in order to mobilize local resources, and all State assistance must go directly to the beneficiaries.

MR. NGUYEN CONG VINH, VICE CHAIRMAN OF THE PROVINCIAL PEOPLE'S COMMITTEE

Consider worker housing an essential infrastructure of industrial parks.

To continue promoting social housing projects, the province is reviewing suitable clean land to implement housing projects for workers and low-income workers in the two hottest housing localities, Vung Tau City and Phu My Town. At the same time, the province is also determined to force investors to reserve 20% of the land fund of commercial housing projects and new urban areas for social housing. At the same time, it is reviewing and adjusting industrial parks to reserve areas for social housing development and trade union institutions for workers, considering housing for workers as an essential infrastructure of industrial parks. In particular, the province encourages enterprises to negotiate with people on land use rights to build social housing, such as considering adjusting construction planning and land use planning (but still in accordance with the general planning) to build houses for low-income people in the area...

According to Mr. Le Viet Lien, General Director of Ba Ria-Vung Tau Housing Development Joint Stock Company (HODECO), the demand for social housing is currently very large. The demand for social housing market with apartments of ^34-36m2 is very popular, followed by apartments of ^50-55m2 .

Therefore, when building social housing products, we must pay attention to focusing on the majority of apartments that meet the needs and are financially suitable, and especially must synchronously plan surrounding amenities such as: kindergartens, schools, medical centers, outdoor sports areas, trees, markets... Traffic infrastructure must be synchronous and convenient.

MR. HA QUANG HUNG, DEPUTY DIRECTOR OF DEPARTMENT OF HOUSING AND REAL ESTATE MANAGEMENT (MINISTRY OF CONSTRUCTION)

Social housing capital will be unlocked

Amending the Housing Law is urgent because many regulations are no longer appropriate. In addition, unlocking capital sources for social housing is also a very important issue.

Accordingly, the State Bank has just issued an official dispatch directing and guiding commercial banks and State Bank branches in provinces and cities to urgently implement the Program for lending for social housing, workers' housing, and renovation and reconstruction of old apartments according to Resolution 33/NQ-CP. In Resolution No. 33/NQ-CP dated March 11, 2023 on a number of solutions to remove obstacles and promote the safe, healthy and sustainable development of the real estate market, the Government assigned the State Bank of Vietnam to "Preside over the implementation of a credit program of about VND 120,000 billion to direct commercial banks, of which the main ones are 4 state-owned commercial banks (Agribank, BIDV, Vietcombank, Vietinbank) to lend to investors and home buyers of social housing projects, worker housing projects, projects to renovate and rebuild old apartments with interest rates during the preferential period 1.5-2% lower than the average medium and long-term VND lending interest rate of state-owned commercial banks (including Agribank, BIDV, Vietcombank, Vietinbank) on the market and qualified non-state commercial banks with specific credit packages in each period".

Mr. Lien also proposed financial solutions for social housing: For commercial housing projects that stipulate 20% of land fund for social housing, the Government should specify, remove obstacles, and clearly and specifically regulate the transfer of 20% of this value to the social housing development fund.

In addition, the Government also needs to immediately "supply" a suitable credit package. Assuming a credit package of 120 trillion VND from now until 2025, flexibly add a package of 260 trillion VND (2025-2030) from the state budget, government bonds... or mobilize from state-owned commercial banks to allocate a portion of profits for the credit support package with an interest rate of 5%/year, loan term of 15-20 years for enterprises and subjects buying and renting social housing.

Go Cat 6 Social Housing Project (Ba Ria City).

Demand increases sharply every year

According to the Department of Construction, it is expected that by 2025, there will be 16 industrial parks in operation in the province, with about 12,000 workers in need of housing. By 2030, it is expected that there will be 19 industrial parks in operation, with about 15,000 workers in need of housing.

The demand for social housing for officers and professional soldiers in the armed forces in the period of 2021-2025 is expected to be 918 people and in the period of 2026-2030 it is 889 people. For the subjects of cadres, civil servants and public employees, it is forecasted that by 2025, there will be 4,078 cadres, civil servants and public employees in need of housing. By 2030, there will be 4,732 cadres, civil servants and public employees in need of housing.

Regarding the need for social housing for low-income people, through surveys, research and data collection by consulting units, it is expected that by 2025, there will be about 65,513 people and by 2030, there will be about 72,288 people (including the need for the period 2021-2025) in need of social housing support.

Promote the development of social housing to help low-income people easily access social housing for rent.

Mr. Ta Quoc Trung, Director of the Department of Construction, said that based on a field survey and implementing Resolution 35 on the Provincial Housing Development Program for the 2021-2030 period, the province will allocate nearly 10,130 billion VND of the budget to build social housing infrastructure, resettlement houses, and public housing.

In addition, enterprises have invested more than VND 59,800 billion in commercial and social housing. In addition, the province also set a target that by 2025, it will develop about ^598,000m2 (equivalent to 8,329 units) of social housing, meeting about 34% of people in need of housing in the province; arrange enough resettlement quotas in the form of land, houses of all kinds or in cash for 100% of households whose land has been recovered and are eligible for resettlement (estimated at about 8,900 households, equivalent to 742,000m2 ^{of floor} space). Next, in the period of 2025-2030, it will develop an additional 640,000m2 (equivalent to 8,300 units) of social housing and about 1.3 million ^m2 of floor space (equivalent to 9,800 units) for households eligible for resettlement.

"Hopefully, with the province's determination, the goal of completing 13,000 social housing units for low-income people by 2030 will be achieved as planned," said Mr. Trung.

Article and photos: QUANG VU

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