The Prime Minister proposed to study a credit package for social housing loans with a term of 10-15 years, with interest rates 3-5% lower.

On March 16, concluding the conference on removing difficulties and promoting the development of social housing, Prime Minister Pham Minh Chinh pointed out many key contents in the coming time.

To develop social housing and build at least 1 million social housing apartments for low-income earners and industrial park workers in the 2021-2030 period, the Prime Minister requested to actively review and perfect institutions, mechanisms, and policies on real estate market development, including those related to social housing.

The Prime Minister talks with delegates at the conference. Photo: VIET CHUNG

The Government has submitted and the National Assembly has approved the Housing Law (amended), the Land Law (amended), and the Real Estate Business Law (amended), which include many incentive mechanisms for social housing projects. Ministries have actively reviewed and amended many relevant legal documents, issued guiding documents with many new contents, removed many difficulties and obstacles in practice... striving to complete and report to the National Assembly to request that they take effect earlier than July 1, 2024 (currently effective from January 1, 2025).

The Prime Minister gave a speech at the conference. Photo: VIET CHUNG

Pointing out the shortcomings in the development of social housing compared to the goals, requirements and expectations, the Prime Minister said that the maximum profit margin of only 10% according to the Housing Law 2023 for social housing investors is not high if there are additional compliance costs. If localities do not create favorable conditions and support but demand, make things difficult and harass, businesses will also lose enthusiasm.

Along with that, the time to successfully implement a project is quite long, from 3-5 years, leading to not being attractive to investors with financial potential and implementation capacity. The procedures for selecting investors and site clearance are basically the same as normal investment projects. There are some other difficulties related to the conditions and subjects eligible to buy social housing. The disbursement of the preferential credit package of 120,000 billion VND is still slow compared to expectations and practical needs (only 5.8% of credit commitment has been made, less than 1% has been disbursed)...

Pointing out the viewpoints on developing social housing and housing for workers, the Prime Minister first affirmed that social housing is normal housing like other types of housing, must ensure quality, safety, environmental sanitation, ensure infrastructure for health, education, social and other services, ensure electricity and water, but the difference is that there are appropriate mechanisms and policies for buyers and sellers.

Not only remote, deserted places, places that cannot build commercial housing, but also social housing, or social housing that lacks medical infrastructure, education, electricity and water, and does not ensure environmental sanitation... Social housing, in addition to buying, must also have renting and hire-purchase.

Assigning key tasks and solutions in the coming time to ministries and branches, the Prime Minister requested to focus on removing difficulties and obstacles in the spirit of minimizing administrative procedures, increasing decentralization and delegation of authority to minimize time and costs for implementing social housing projects.

The Ministry of Construction is taking the lead in developing a process to simplify administrative procedures for selecting investors and implementing social housing projects to save time and encourage and mobilize social resources.

The State Bank has directed major state-owned commercial banks to join hands with businesses to research, develop and provide credit packages for buyers with a term of 10-15 years and interest rates 3-5% lower than commercial loans; research and consider lowering the lending interest rate for the VND120,000 billion support capital source appropriately.

For localities, the Prime Minister requested that Party committees issue resolutions to lead the development of social housing, and People's Councils issue policies and regulations suitable to local characteristics. Localities are responsible for planning and allocating land funds to develop social housing and workers' housing. Land areas and beautiful locations with advantages must be prioritized for production, business, and job creation for people, so that people will come to work, and when people come to work, people will come to live and buy houses, thereby developing real estate and sustainable urban areas.

Organize auctions and bidding to select investors with potential, finance, and experience, implement publicly and transparently, and increase the deposit and guarantee ratio to ensure the selection of investors with good potential. Urge investors of commercial housing projects and urban areas to invest in building social housing on 20% of the land fund of these projects according to the approved schedule; in case the investor fails to implement, the 20% land fund will be recovered to select other investors to implement.

The Prime Minister also requested specific mechanisms and solutions to shorten administrative procedures for project establishment, approval, land allocation, land lease, site clearance, construction investment procedures, etc. to support and encourage businesses to invest in construction projects, create supply for the market and take advantage of preferential capital sources for social housing development.

The Prime Minister requested localities to register targets for social housing development in 2024; the Ministry of Public Security and the Ministry of National Defense strive to build 5,000 social housing apartments each in 2024; the Vietnam General Confederation of Labor 2,000 apartments... Provinces and cities are determined to achieve the target, the number of social housing in 2024 is collected by the Ministry of Construction.

The Prime Minister also asked relevant entities to actively participate in the nationwide movement to eliminate temporary housing to be launched in the coming time.

PHAN THAO

Source