On the afternoon of March 6, Prime Minister Pham Minh Chinh chaired a national online conference on removing difficulties and obstacles, promoting the development of social housing. At the conference, delegates will discuss with many leading corporations and enterprises in real estate development in Vietnam - including Viglacera Corporation - to contribute ideas 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 houses for low-income people and industrial park workers in the period of 2021-2030".
National online conference on removing difficulties and obstacles, promoting social housing development (photo by Nhat Bac)
Co-chairing this important conference were Deputy Prime Ministers Tran Hong Ha and Ho Duc Phoc. The conference was held in Hanoi, online to 63 locations in localities across the country.
The conference was attended by leaders of ministries, branches, experts, Real Estate Associations, banks, and large real estate enterprises across the country.
The Prime Minister directed: "Promoting resources for social housing development from enterprises with the spirit of serving the people and the country"
In his opening speech, Prime Minister Pham Minh Chinh said that the development of social housing has been discussed a lot, but the implementation has not been very effective. The clear policy of our Party and State is to develop quickly but sustainably, without sacrificing progress, fairness, and social security to pursue economic growth alone; people have the right to live, the right to freedom, the right to pursue happiness, including the right to housing.
Prime Minister Pham Minh Chinh asked delegates to give specific comments on legal issues and social housing policies (photo by Nhat Bac)
The Prime Minister asked the delegates to focus on frank discussions on a number of issues: Are the social housing construction targets assigned to localities appropriate? What are the policy mechanisms that need to be resolved? How to mobilize resources? The Prime Minister asked the delegates to give specific comments on legal issues to propose solutions at the upcoming National Assembly session.
The Prime Minister proposed organizing a social housing architectural design competition to create housing models that are suitable for the conditions, landscape, culture, and climate of each region. At the same time, it is possible to study the construction of social housing by assembling reinforced concrete components to consider mass production methods.
Regarding resources, the Prime Minister mentioned a number of solutions that have been and are being implemented such as establishing a national housing fund; disbursing a credit package of 140 trillion VND for social housing without counting it into the credit "room" of banks...
Especially regarding procedures, the Prime Minister said that it is necessary to create mechanisms and policies, calling on businesses to be able to do things quickly, cutting down on procedures, with the spirit of serving the people and the country.
The Prime Minister raised the question: Why haven't businesses done it yet? Is it because the government doesn't dare to assign the work? Can we assign it directly to businesses without bidding, as long as we ensure publicity, transparency, and measures to prevent corruption, negativity, and waste? If we bid, we must ensure substance, no formality, no blue or red troops, to avoid a very long process that wastes time and doesn't bring anything.
Positive and frank feedback from the business community
The Prime Minister's heartfelt speeches immediately received positive and frank feedback from the business community. Currently, the social housing development target has been included in the local socio-economic development target system, according to Directive 34 of the Secretariat. According to the report of the Ministry of Construction, up to now, 10 localities have implemented this. About 30 localities have issued plans to implement the Project of 1 million social housing units, with nearly 9,740 hectares of land for the development of this housing segment.
However, the procedures and time required to develop a social housing project are often lengthy, causing slow progress. Mr. Dau Minh Thanh - Chairman of the Board of Members of the Housing and Urban Development Corporation (HUD) proposed that the Government have a mechanism to prioritize the development of social housing projects by shortening the procedures and time for selecting investors.
According to Mr. Dau Minh Thanh - Chairman of the Board of Directors of HUD Corporation, bidding should only be applied to projects that have qualified investors. Investors can be ranked according to a scale of evaluation of capacity profile, experience or project scale (photo by Nhat Bac)
Sharing the same view, Mr. Le Khac Hiep - Vice Chairman of Vingroup Corporation proposed that the Prime Minister allow localities to designate contractors and investors. At the same time, localities are allowed to shorten procedures or do them in parallel. "For example, being able to do planning and construction investment procedures at the same time will shorten a lot of time," said Mr. Le Khac Hiep. "For example, being able to do planning and construction investment procedures at the same time... will shorten a lot of time. If we finish planning and then do investment, finance... it will create many administrative procedures."
Mr. Le Khac Hiep - Vice Chairman of Vingroup Corporation gave an example, being able to do planning and construction investment procedures at the same time will shorten a lot of time. If we finish planning and then do investment, finance... it will create many administrative procedures". (photo by Nhat Bac)
Speaking at the event - Mr. Nguyen Anh Tuan - General Director of Viglacera Corporation - JSC proposed a mechanism to directly hand over the project to a competent unit to implement because "the procedure for selecting an investor takes a lot of time". More specifically, Mr. Nguyen Anh Tuan stated: " Regarding the policy of handing over the project to the investor as the Prime Minister raised the issue, in reality, the houses must be built according to the design documents, the selling price has been approved, and the customers have also been approved. Therefore, there is no need for bidding. It is proposed to hand over directly to a competent unit to do it quickly, eliminating time-consuming procedures".
Mr. Nguyen Anh Tuan - General Director of Viglacera Corporation - JSC made two recommendations from the practical implementation of the task of developing social housing at Viglacera (photo by Nhat Bac)
The representative of Viglacera Corporation continued to state the reality: Regarding housing for workers in industrial parks, the current policy stipulates that only workers in industrial parks where there are projects can rent or buy social housing. Meanwhile, other subjects such as employees of enterprises inside and outside industrial parks who want to rent or buy are not eligible for support policies.
Even industrial park owners want to rent out buildings, then install furniture and let their workers stay for free. This means that workers will be able to live in buildings that industrial park owners rent from social housing investors. However, this is also stuck in regulations, because industrial park owners are not allowed to rent social housing. This is an old regulation, and we hope the Government will soon pay attention to removing it.
In terms of its capacity, Viglacera is capable of providing synchronous construction materials products for both fast construction and cost reduction in accordance with the Prime Minister's direction. Viglacera is ready to coordinate with organizations to deploy scientific and technological solutions, produce product sets for quick installation, which will reduce construction time, limit damage during construction while ensuring the quality of the project. Thereby, accelerating the progress of construction investment, meeting the need for early growth of housing funds for the market.
Mr. Truong Anh Tuan - Chairman of the Board of Directors of Hoang Quan Group hopes that the State Bank needs to take the lead in continuously coordinating with banks to disburse funds for social housing projects (photo by Nhat Bac)
Mr. Truong Anh Tuan - Chairman of the Board of Directors of Hoang Quan Group also spoke frankly about his wish to only appoint contractors for social housing projects under 2,000 billion VND, and only larger projects will be bid. In addition, There should be a National Steering Committee on social housing and low-income housing. Relevant ministries and branches such as the State Bank, the Ministry of Construction, the Ministry of Finance, and the Ministry of Agriculture and Natural Resources should also have a Steering Committee on social housing at the Ministry to handle and resolve specific problems. Hoang Quan Group recommends that the State Bank should take the lead in continuously coordinating with banks to disburse funds for social housing projects. In the long term, there should be data digitization to easily search and classify subjects with social housing.
Mr. Nguyen Xuan Quang - representative of Nam Long Group proposed to adjust sales fees to attract investors (photo by Nhat Bac)
In addition to the bidding procedure, Mr. Nguyen Xuan Quang - representative of Nam Long Group proposed that the State support land clearance for enterprises with their own money. In case enterprises have available land, the State will appraise the price close to the market. This will shorten the time to bring the price closer to reality. Mr. Long stated: Currently, the selling fee of enterprises is regulated at 2% but this fee in the market is up to 5-8%, even higher. Nam Long representative said that adjusting this fee close to the market will attract investors.
Mr. Nguyen Van Luyen - General Director of UDIC Corporation raised 4 problems surrounding issues of land fund, project approval time, 10% profit control, credit mechanism (photo by Nhat Bac)
Mr. Nguyen Van Luyen - General Director of UDIC Corporation mentioned the current situation of the investor's standard profit in the selling price of social housing is currently regulated at a maximum of 10%. This level is quite low compared to the actual market level. UDIC representative said that in the current conditions, materials, raw materials and labor often fluctuate, procedures are prolonged, leading to increased costs, and the profit of enterprises is not guaranteed. Therefore, it is proposed to consider and increase the standard profit for enterprises to 15-20%.
Becamex representative said that it is necessary to soon build a national housing fund linked to the database of population and income, from which we can prepare for construction and development plans, avoiding passivity. In addition, 100% of countries that are successful in building social housing have a 25-year loan policy with a fixed interest rate. This is very necessary for home buyers and investors.
Prime Minister requests to establish National Housing Fund in March
Concluding the online conference on the afternoon of March 6, Prime Minister Pham Minh Chinh affirmed that social housing development is a driving force for socio-economic development, contributing to increased investment, consumption, and ensuring social security. Therefore, he requested the participation of the entire political system. Localities must establish a Steering Committee for social housing development.
To mobilize resources, the Prime Minister requested the establishment of a National Housing Fund. Accordingly, Deputy Prime Minister Ho Duc Phoc was assigned to direct the Ministry of Finance to research and complete it in March.
The Prime Minister pointed out 10 groups of tasks and solutions for ministries, branches and localities. At the same time, he also requested that preferential policies for social housing development be submitted to the Prime Minister in March, and at the latest in April.
According to the Ministry of Construction, Vietnam aims to have 1 million social housing units by 2030. However, to date, only 103 projects have been completed with a scale of more than 66,755 units, less than 7% of the set target. The remaining 137 projects have started construction (114,618 units) and about 415 projects have been approved for investment (412,200 units).
Regarding credit capital for social housing projects, State Bank Governor Nguyen Thi Hong said that this is a long-term source of capital, while banks mobilize from people for short-term. Therefore, the balance between lending and mobilization is very important, because capital from the banking system is only an "additional support solution", not a decisive policy. She suggested using budget capital entrusted through lending banks or establishing a trust fund through credit institutions, helping to lend for long term, with more preferential interest rates.
Previously, General Secretary To Lam mentioned that Vietnam needs to establish a “National Housing Fund” to develop low-cost housing in large cities. This is also a solution to promote urban areas to become the driving force of national growth.
Source: https://www.viglacera.com.vn/vi/portal/news.php/tin-tuc-su-kien/diem-bao/viglacera-cung-nhieu-tap-doan-lon-tham-gia-hoi-nghi-toan-quoc-thao-go-kho-khan-vuong-mac-thuc-day-phat-trien-nha-o-xa-hoi-id-10829.html
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