Reporter of Tin Tuc and Dan Toc newspaper discussed with Lawyer Pham Thanh Tuan, real estate legal expert, about this issue.
Can you share more clearly the current status of capital sources for social housing development in recent times?
Because social housing is a special type of real estate product, it has support from the State in terms of policies and mechanisms. Competent authorities will control costs (determine housing prices), limit profits (not exceeding 10% of total investment), limit buyers (only for beneficiaries)... Therefore, the State's support policies for enterprises developing social housing are extremely important, especially capital sources.
In the past, Vietnam's social housing sector still relied on the VND120,000 billion credit package from four state-owned commercial banks. Currently, the credit package has been increased to VND145,000 billion with the participation of nine banks.
However, in reality, the disbursement speed of the above credit package is slow. The nature of the VND145,000 billion package is a credit package from commercial capital sources of banks, without support from the State budget. Therefore, although banks have allocated priority resources to develop social housing, the interest rate for investors and home buyers is still not attractive enough (1.5 - 2% lower per year than the normal loan interest rate). This is the reason why investors and social housing buyers are not "interested" in this credit package.
Not only that, the procedures for implementing social housing projects are quite complicated, taking more time than commercial housing projects; the supply of social housing projects is limited due to legal difficulties. This is also the reason why social housing projects have difficulty accessing preferential credit packages.
Thus, the addition of new credit capital with budget support for social housing development or the establishment of the National Social Housing Fund will be a key factor, contributing to the success of the Project to develop 1 million social housing units.
Prime Minister Pham Minh Chinh requested the Ministry of Finance to complete the establishment of the National Housing Fund in March 2025 to mobilize resources for social housing development. What is your assessment of the policy of implementing the "National Social Housing Fund" in the coming time?
Vietnam still does not have a financial fund to support resources for localities and enterprises to implement social housing. Although the Housing Law 2023 allows provincial People's Committees to allocate the State budget for compensation, support, resettlement, and investment in technical infrastructure outside the project, the Public Investment Law does not have regulations on allocating the State budget to compensate for site clearance to implement social housing projects. This is a shortcoming that leads to the use of the budget for site clearance compensation and investment in the construction of technical infrastructure systems at local social housing projects being almost "frozen".
Therefore, the establishment of the National Social Housing Fund will be an important premise to help localities allocate funds to clear "clean" land for enterprises to build social housing; invest in technical infrastructure systems and social infrastructure for social housing projects; and support loan interest rates.
Source: https://doanhnghiepvn.vn/kinh-te/nut-that-ve-von-se-duoc-go-khi-co-quy-nha-o-xa-hoi-quoc-gia/20250319094438654
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