The Prime Minister requested localities to recover wasteful projects, arrange adequate land funds, and quickly hand them over to investors.
On the afternoon of March 6, Prime Minister Pham Minh Chinh chaired a national online conference on removing difficulties and obstacles and promoting the development of social housing. Co-chairing were Deputy Prime Ministers Tran Hong Ha and Ho Duc Phoc with the participation of leaders of ministries, sectors, experts, real estate associations, banks, and large real estate enterprises nationwide.
Infrastructure as commercial housing
The conference took place to remove difficulties and obstacles, promote the development of social housing and effectively implement the Project "Investing in the construction of at least 1 million social housing units for low-income people and industrial park workers in the period 2021 - 2030".
At the beginning of the conference, the Prime Minister said that the development of social housing has been discussed a lot but the implementation efficiency is not high. Welcoming some localities that have recently started large social housing projects, the Prime Minister expressed concern that "land is in our hands, money can be mobilized, mechanisms, policies, procedures are ours, but the construction of social housing has not changed or has changed very slowly". In particular, the Prime Minister noted that social housing does not mean working on "leftover" land, "deserted" places, where commercial housing cannot be built, then social housing is built. The Government leader emphasized that priority must be given to social housing first and then to commercial housing. Social housing must have full infrastructure conditions similar to commercial housing. Deputy Minister of Construction Nguyen Van Sinh proposed that the Prime Minister assign the ministry to research and preside over the development of a pilot Resolution on specific mechanisms and policies on social housing development in the coming time, including policies on selecting investors for social housing construction investment projects without bidding and a number of policies to remove obstacles in social housing development.
The representative of the Urban Infrastructure Development Investment Corporation (UDIC) proposed that it is necessary to soon issue a policy on piloting land allocation without bidding for enterprises, especially state-owned enterprises with sufficient experience in investing and developing social housing. The Government should pay attention and direct the early implementation of the pilot of the Social Housing Development Fund or a suitable financial institution model for long-term and sustainable social housing development; propose to increase the standard profit from the current 10% to 15% - 20%; support enterprises to access loan sources faster, with longer loan terms to ensure capital sources for investors. The representative of the Housing and Urban Development Investment Corporation (HUD) proposed that the Government consider allowing the application of the method of bidding for projects that already have investors who fully meet the conditions or shorten the bidding process by improving the capacity and responsibility of the bidding party to reduce procedures and time.
Representatives of Vingroup Corporation proposed that the Prime Minister allow localities to designate contractors and investors; allow localities to shorten procedures or do them in parallel. For example, it is possible to do planning and construction investment procedures at the same time... which will shorten the time. In addition, it is necessary to amend Decree No. 100/2024 in the direction that localities, based on their social housing needs, can decide on the allocation of social housing land; and not require commercial housing projects to allocate social housing land.
Prime Minister Pham Minh Chinh gave instructions and Mr. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association (HoREA), made recommendations. Photo: NHAT BAC
Proposal for pilot bidding
At the conference, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), presented 10 recommendations and solutions, and proposed that the National Assembly issue a Resolution on piloting specific policies and mechanisms on social housing, including the establishment of a National Housing Fund. In addition, Mr. Chau also suggested that the Prime Minister assign the Ministry of Construction and other ministries and branches to develop a project on developing low-cost commercial housing and a mechanism to support young people to buy houses. The representative of Becamex pointed out that 100% of countries that have been successful in building social housing have a 25-year loan policy with a fixed interest rate. This is very necessary, both for home buyers and investors; therefore, a preferential credit program with a long term and a fixed interest rate is needed.
In his concluding remarks, the Prime Minister emphasized that investment in social housing is investment in the development of society and the country, an important task that requires the participation of the entire political system. Localities must establish a steering committee on social housing development. To achieve the set goals and create positive and clear changes after the conference, the Prime Minister pointed out 10 groups of tasks and solutions for ministries, branches and localities. In particular, the Ministry of Construction was assigned to preside over and review the institutions, processes and procedures that are stuck at which points, who will resolve them, how long it will take, and when will there be results. In the laws, decrees and circulars, which agencies must amend and propose to the Government and submit them to the National Assembly. Emphasizing the need for preferential policies, the Prime Minister requested that this must be submitted in March, at the latest in April. The Ministry of Construction also reviewed the standards, regulations and norms related to social housing. The Prime Minister assigned localities to plan and adjust social housing planning appropriately, and to complete it by the second quarter at the latest. Localities must have plans and proactively allocate land quickly to investors; study the recovery of wasteful projects and land that has been abandoned for many years, resolve problems, and assign them to investors; resolve and arrange adequate and quick land funds for investors; and clear land for enterprises.
Regarding the recommendations, the Prime Minister assigned the Government Office to synthesize and report to the Government for competent proposals on contents beyond the Government's authority, including the proposal to issue a Government Resolution to pilot the appointment of contractors in the implementation of social housing projects. For localities, the Prime Minister requested that projects that have started construction must be determined to complete and put into use immediately in 2025; strictly implement regulations on reserving land for workers' accommodation in industrial parks and 20% of residential land in commercial housing projects and urban areas for investment in social housing development. It is necessary to resolutely remove obstacles, cut down and simplify administrative procedures on investment in social housing construction to support and encourage enterprises to implement projects. Urgently develop and promulgate annual and 5-year social housing development implementation plans.
Cut at least 30% of administrative procedures
The Prime Minister requested the establishment of a National Housing Fund, and assigned Deputy Prime Minister Ho Duc Phoc to direct the Ministry of Finance to complete it in March. Approval of the list of people eligible to buy, rent, or lease social housing based on population data integrated with standards and criteria. The Government Office shall preside over, review, and cut at least 30% of administrative procedures by 2025.
Vice Chairman of Hanoi People's Committee Duong Tuan:
Minimize the process
Propose that the Prime Minister allow the basis of the 1/5,000 urban zoning plan to be used as the basis for bidding and selecting investors for social housing, because other laws such as the Investment Law and the Urban Planning Law allow it. Along with that, allow immediate implementation of site clearance investment, without having to wait for the establishment of investment policies or successful bidding to select investors. Administrative procedures must be reduced, as General Secretary To Lam directed to reduce at least 30%. In addition, it is necessary to review all processes related to social housing investment projects, shortening the time to about 3-6 months to ensure resources to prepare for larger social housing.
Vice Chairman of Ho Chi Minh City People's Committee Bui Xuan Cuong:
Support for investors and home buyers
The Prime Minister assigned Ho Chi Minh City to focus on building 69,300 social housing units from now until 2030. However, based on the housing development program and plan that the city has previously set, the city's target is higher (93,000 social housing units). The entire political system has taken drastic action, including the City Party Committee, People's Council, and People's Committee, and issued solutions to remove obstacles to develop social housing. For example, the People's Council has a resolution to lend social housing project investors a maximum of VND200 billion and support 100% of the interest rate for a period of 7 years. The City Housing Development Fund also provides loans for social housing purchases of up to 70% of the apartment value but not exceeding VND900 million and the interest rate is 3.2%/year, for a period of 20 years. In the upcoming session of the People's Council, the city will submit resolutions to remove obstacles, support investors in costs of investing in building technical infrastructure systems, support fees, charges, other contents related to the process of granting construction permits, granting land use right certificates and some other contents to remove obstacles in the implementation process in the coming time. The city recommends that if during the implementation process, the investment policy is approved, it is possible that on the basis of the approved general planning and 1/2,000 zoning plan, the investment policy can be accepted immediately so that on that basis, it can be implemented in parallel to save time.
Source: https://nld.com.vn/quyet-sach-dot-pha-de-phat-trien-nha-o-xa-hoi-196250306220459105.htm
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