National Social Housing Development Fund: There needs to be a mechanism for everyone to join hands

Where does the National Social Housing Development Fund get its money from?

The Government is drafting a pilot Resolution on a number of specific mechanisms and policies for social housing development to submit to the National Assembly for review and consideration. In particular, the Government proposes the establishment of a National Social Housing Development Fund.

According to this draft Resolution, the capital source for forming the National Social Housing Development Fund is taken from the annual State Budget allocation and other mobilized capital sources according to the provisions of law.

In which, other mobilized sources include: Revenue from selling and leasing public housing, revenue from commercial housing project owners contributing equivalent to the value of 20% of the land fund invested in building technical infrastructure systems to build social housing according to the provisions of the law on housing.

The government is proposing to establish a National Social Housing Development Fund. Photo: VNN

However, according to many experts, the National Social Housing Development Fund mobilizing capital from the above two sources is not enough. Because, Vietnam's goal in the period of 2021 - 2030 is to build at least 1 million social housing units for low-income people.

However, up to now, although the time has passed half way, only 10% of the set target has been achieved. Thus, with the remaining volume to complete the target of 90%, equivalent to 900,000 social housing apartments in the next 5 years, the capital outlay is "huge".

Mr. Le Van Binh, Deputy Director of the Department of Land Management, Ministry of Agriculture and Environment, said: If using the National Social Housing Fund to develop social housing projects will not be enough, no fund is big enough to implement all projects. However, in the case of using the Fund to carry out the work of land acquisition and clearance to implement social housing projects, it will be more effective.

Regarding this issue, Mr. Chu Van Hai, Head of the Department of Social Housing Development and Management, Department of Housing and Real Estate Market Management, Ministry of Construction said: The Ministry of Construction (the presiding agency) is in the process of researching, building and collecting opinions from agencies before submitting this draft Resolution to the National Assembly. Regarding the operating capital of the National Social Housing Development Fund, the Ministry of Construction is proposing a contribution from the State Budget.

Regarding other financial sources, there are currently many different sources of revenue being studied to be included in the draft. From there, the Ministry of Construction will determine which additional sources of capital should be mobilized in addition to the State Budget to report to the competent authority.

“We are building the basic content of the National Social Housing Development Fund. In the coming time, if all goes well, the draft Resolution will be approved at the upcoming meetings,” said Mr. Hai.

Expert advice

Regarding the issue of capital mobilization for the National Social Housing Development Fund, Mr. Dinh Minh Tuan, an expert from Property Guru Vietnam, said: The issue of capital sources is very important.

According to Mr. Tuan, the capital for this Fund does not only come from the State, but there needs to be a mechanism for everyone to join in. For example, the Government and the Ministry of Construction need to clearly stipulate that in this Fund, the capital from the State is 20%, 30% from banks, 20% from enterprises, 10% from people and 20% from foreign organizations.

“In addition to capital, a streamlined mechanism for project implementation within the National Housing Fund is also the key to the success of this model,” said Mr. Dinh Minh Tuan.

Meanwhile, Dr. Can Van Luc, an economic expert, shared: Vietnam can refer to the experience of some countries in the region such as Singapore, South Korea, and China in establishing a National Housing Fund.

According to Mr. Luc, the National Housing Fund in some countries uses many different sources of capital such as: State budget capital, capital from issuing bonds for social housing projects, or capital from the savings of home buyers. For example, if you want to buy social housing, you definitely have to save, maybe from your income to commit to having cash flow to pay off the debt for that house.

“Some countries like China and Singapore use part of their social insurance funds to establish funds. There are also cases where capital is mobilized from domestic and international financial institutions. With such capital sources, it is relatively feasible,” said Mr. Luc.

Viet Vu

Source: https://www.congluan.vn/quy-phat-trien-nha-o-xa-hoi-quoc-gia-can-co-co-che-de-moi-nguoi-cung-chung-tay-post341217.html