EFFORTS TO SPEED UP THE PROGRESS OF SOCIAL HOUSING PROJECTS IN NGHE AN
The Southeast Nghe An Economic Zone is a large economic zone of Nghe An province, currently with 273 valid projects, with a total of about 38,000 cadres, workers and laborers working here. Therefore, the creation of housing funds and housing issues for laborers here are issues that are attracting the attention of the province, all levels, sectors and businesses.
In recent times, to ensure peace of mind in investing and treating workers, some enterprises have invested in building dormitories for workers. Specifically, at VSIP Nghe An Industrial Park, the construction of the Luxshare ICT Factory project dormitory (Nghe An) has been completed, providing accommodation for about 8,220 workers, currently 1,521 workers are staying. In addition, the dormitory of Everwin Precision Technology Co., Ltd. (Vietnam) has been completed and put into use, covering an area of 2.865 hectares and meeting the accommodation needs of about 1,200 workers.
At Hoang Mai I Industrial Park, with the interest of investor Hoang Thinh Dat, currently investing in building a dormitory for the Ju Teng Electronic Product and Auto Parts Factory project, providing accommodation for about 20,000 workers. Hoang Mai II Industrial Park also plans to allocate a land fund of about 50 hectares to serve the construction of dormitories for workers working at factories in the industrial park.
Implementing the 120,000 billion VND social housing package under the direction of the Government, Mr. Le Tien Tri - Head of the Southeast Economic Zone Management Board said that currently, the Southeast Economic Zone and Nghe An Industrial Parks have 4 social housing projects for workers that have selected investors (meeting about 22,300 workers), including 3 projects undergoing investment procedures and 1 project under construction. Specifically, 3 projects are being implemented by enterprises: Song Lam Cement Joint Stock Company, MK Central Solar Power Joint Stock Company, BMC International Trading Joint Stock Company. 1 project approved for a loan is the social housing project in Nghi Xa commune (Nghi Loc) invested by Kim Thi Real Estate Joint Stock Company, meeting 389 social housing apartments for workers and laborers.
The leader of the Southeast Economic Zone Management Board also said: In the past, the arrangement or orientation of land fund for the construction of social housing for workers and trade union institutions has always been of interest to the Southeast Economic Zone Management Board, reflected in the process of making the general construction plan for the Southeast Economic Zone as well as the construction zoning plan (or detailed construction plan) of industrial parks.
Based on specific conditions and actual needs, the Southeast Economic Zone Management Board will submit to the Provincial People's Committee for consideration to supplement the land fund around the industrial park or adjust the planning to reserve a part of the industrial park area for land allocation to build social housing for workers and trade union institutions. However, up to now, the housing fund has not met the requirements of workers.
Regarding the VND 120,000 billion package, Ms. Nguyen Thi Thu Thu - Director of the State Bank of Vietnam, Nghe An branch said: Following the direction of the State Bank of Vietnam, the provincial branch of the State Bank has issued Document No. 359/2023 to thoroughly instruct and direct commercial bank branches to implement in the area. We request units to regularly monitor and update the list of projects, subjects, conditions, and beneficiary criteria according to the instructions of the Ministry of Construction and the State Bank of Vietnam for lending and disbursement. For projects that have been and are being implemented, with full legal factors, it is necessary to focus on lending to both investors and home buyers, creating conditions to promote the development of the social housing and worker housing markets.
Regarding disbursement, up to now, Nghe An has 2 projects that meet the legal conditions to access loans according to Resolution 33/NQ-CP (2023). These are the social housing project for workers and laborers working in industrial parks in the Southeast Economic Zone at location No. 1, Nghi Xa commune, Nghi Loc district, Nghe An province (investor: Kim Thi Real Estate Joint Stock Company); Project to renovate Area A of Quang Trung Apartment Complex, Vinh city (investor: Quang Trung Petroleum Urban Investment Joint Stock Company).
Up to now, Quang Trung Petroleum Urban Investment Joint Stock Company has no need to borrow capital from the bank because the project is in the stage of site clearance and resettlement. Meanwhile, Kim Thi Real Estate Joint Stock Company has a need to borrow capital and has completed the procedures to request a loan from the 120,000 billion VND credit package at the bank.
DISADVANTAGES
With the current speed of attracting investment, especially foreign investment in Nghe An (top 10 nationwide), the need for land and housing for workers is urgent. And the results of building social housing as above have not completely met the needs of workers in need.
Workers are having to rent a lot of accommodation, or have to move from home to industrial zones quite far away, the travel conditions are not guaranteed, security and order in the accommodation areas are also insecure, especially for female workers. Ms. Le Thi Nhung - a worker in Nam Cam industrial zone, after the process of going back and forth between her hometown (Nghi Lam - Nghi Loc) and the factory with a quite long distance, has quit her job to find another more suitable job.
Some businesses during and after the Covid-19 pandemic have realized that social housing for workers is very important, especially to ensure health and avoid disruption of the production cycle.
Cong Thanh Commune, Yen Thanh District, where An Hung Garment Factory has been operating for many years, has always employed thousands of workers. Among those thousands of workers, the majority are local people, however, some are workers from other districts such as Nam Dan, Do Luong, and even from other provinces. Due to the lack of social housing, hundreds of factory workers have to rent houses in residential areas to live.
Nearly 1 km from An Hung Garment Factory, there are 4 workers living together in a level 4 house, rented from a household in Ngoc Long hamlet. All of these workers are far from home, including Quoc Anh from Quang Ninh province, Loc from Nghia Hanh commune (Tan Ky), Phuc and Kien from Thanh Lien commune (Thanh Chuong). Through discussion, it is known that they rent the house for 1.5 million VND/month (nearly 400,000 VND/person, not including electricity and water bills).
"If the factory has social housing, workers who live far from home like us will have a stable place to live, and when there is a communal dining room, we can have time to rest and not have to work hard to cook each meal," said Mr. Quoc Anh.
In some industrial parks outside the Southeast Economic Zone such as Song Dinh Industrial Park (Yen Thanh), Nghia Dan Industrial Park, Tan Ky Industrial Park, Tri Le Industrial Park... or industrial parks in the Southeast Economic Zone but have independent locations, not attached to functional service and urban areas (Hoang Mai I Industrial Park, Hoang Mai II Industrial Park, Dong Hoi Industrial Park), the arrangement of land funds for building social housing for workers adjacent to industrial parks is still passive and dependent, causing difficulties for the operations of enterprises and workers.
The second problem, Mr. Dinh Minh Son - Deputy Head of Construction Planning Department of the Southeast Economic Zone Management Board said: The goal by 2030, Nghe An will complete 28,500 social housing units, of which 19,500 are housing units for workers. This number is far from the current reality, so the project still faces many difficulties and confusion.
The third problem is that, according to the opinions of some investors of social housing construction projects for workers in the Southeast Economic Zone and industrial parks in Nghe An province, currently, accessing capital of 120,000 billion VND under the Program under the Project "Investing in the construction of at least 1 million social housing apartments for low-income people and industrial park workers in the period of 2021-2030" is still facing many difficulties and legal procedural problems at relevant banks and credit institutions.
In addition, most social housing projects for workers are mainly implemented in areas where there has not been investment in building a synchronous technical infrastructure system according to the approved planning for the construction of functional areas, which affects the progress of implementing housing projects for workers, due to limited connection of external technical infrastructure systems.
Nghe An is currently strictly implementing the law on reserving 20% of residential land in commercial housing projects and urban areas for investment in social housing projects. Focusing on reviewing, approving, appraising new or approving adjustments or supplements to framework and orientation planning projects to create consistency, unity and stability of planning, ensuring land funds for social housing development.
Mr. Le Tien Tri - Head of the Southeast Economic Zone Management Board said: To resolve the existing problems and difficulties in the implementation of the 120,000 billion VND social housing package, Nghe An needs to have a written request for the Government, ministries and central branches to pay attention to resolving a number of issues.
Regarding land allocation, for areas without a construction zoning plan, the Provincial People's Committee is allowed to decide on the location for implementing social housing projects for workers according to the general urban planning, the general planning for economic zone construction or the district planning and the general planning of communes (with orientations for residential land planning); Prioritize the allocation of budget capital to implement policies to support investment in building connecting infrastructure outside the fences of social housing projects for workers; Have necessary solutions and measures to promote access to capital and disbursement conditions for the source of 120,000 billion VND according to the Program under the Project "Investing in the construction of at least 1 million social housing apartments for low-income people and industrial park workers in the period of 2021-2030" for investors in building social housing.
Another important thing is to allow immediate application of exemption from land rent and land use fees (no need to go through procedures to determine land prices and then go through exemption procedures because the subjects are 100% exempt).
Previously, implementing the housing loan program under Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government on the development and management of social housing implemented through the Social Policy Bank system: As of the end of February 2024, the cumulative loan turnover of this program in Nghe An reached VND 542.2 billion for 1,394 customers, outstanding debt reached VND 481 billion/1,317 customers.
Regarding the preferential loan program under Resolution No. 11/NQ-CP dated January 30, 2022 of the Government and Resolution No. 43/2022/QH15 of the National Assembly implemented through the Social Policy Bank system for individuals and households to buy, hire-purchase social housing, housing for workers: As of December 31, 2023 (the end date of the program disbursement ) , the cumulative loan turnover of the program reached 382.7 billion VND/869 customers receiving capital support to build new and repair houses, the program's outstanding debt reached 358.8 billion VND.
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