Difficulties and obstacles
On November 12, Mr. Pham Viet Ha, Deputy Director of the Department of Construction of Quang Ngai province, sent a report to the Ministry of Construction on the investment project to build at least 1 million social housing apartments for low-income people and industrial park workers.
Accordingly, from 2021 to present, no social housing projects in the province have been completed, accepted, and put into use.
At the same time, according to Mr. Ha, there are many difficulties and problems in the management and development of social housing and workers' housing in the area.
Mr. Pham Viet Ha, Deputy Director of the Department of Construction of Quang Ngai province.
On June 20, the Government issued Decree No. 35/2023/ND-CP amending and supplementing a number of articles of the Decrees under the state management of the Ministry of Construction.
Accordingly, the Decree no longer stipulates that the investor of a social housing construction investment project (not using public investment capital, foreign capital invested in public investment, etc.) is allowed to reserve 20% of the total residential land area invested in building technical infrastructure systems within the scope of the social housing construction investment project (including projects using 20% land fund) to invest in building commercial housing to offset investment costs, contributing to reducing selling prices, rental prices, and hire-purchase prices of social housing and reducing costs for management and operation services of social housing after investment.
This was previously stipulated in Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government on the development and management of social housing and was amended and supplemented in Decree No. 49/2021/ND-CP dated April 1, 2021 of the Government.
This will greatly affect the rights and investment plans of social housing project owners.
For Dung Quat Economic Zone and the province's industrial parks, most of the enterprises are small and medium-sized. Therefore, enterprises have not really paid attention to investing in building housing to serve the needs of workers.
At the same time, the investigation of workers' housing needs has not received much attention and coordination from enterprises, causing many difficulties for the Economic Zone Management Board in surveying and assessing workers' real housing needs, in order to have a basis for adjusting and supplementing the planning and housing construction plan to suit reality.
Regulations on investment processes and procedures,... for social housing projects between investment law and housing law are not consistent, leading to confusion in the implementation process.
Legally, there is a paradox that social housing is subject to the same legal policies as commercial housing.
This makes the progress of project implementation longer, legal procedures more complicated, does not attract investors, and especially the loan capital to support investors in implementing these social housing projects has not been implemented.
Investing in social housing development does not bring profits like investing in commercial housing and commercial land.
Current preferential policies on social housing mainly focus on reducing costs, so the main beneficiaries are buyers, renters, and hire-purchasers.
Therefore, according to the law of business, attracting investors to voluntarily invest in social housing is very difficult.
Need to simplify procedures to attract investors
Mr. Vy also recommended that the Ministry of Construction study and advise the Government on three issues. First, issue separate regulations on investment processes and procedures, etc. for social housing projects in the direction of shortening and simplifying procedures, in order to create favorable conditions for attracting investment and implementing projects.
A workers' dormitory in Quang Ngai province.
Second, research the mechanism, issue separate policies on investment in housing construction for workers in industrial parks in the direction of priority, arrange land funds and institutions in industrial parks, consider workers' housing as essential infrastructure in industrial parks. Investors in industrial park infrastructure business must be responsible for investing in housing for workers in industrial parks.
Finally, research mechanisms, issue support policies, and create conditions for social housing project investors to reserve a portion of land within the scope of social housing projects to invest in building commercial housing to offset investment costs, contributing to reducing selling prices, rental prices, and hire-purchase prices of social housing.
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