Binh Dinh has 28 social housing projects approved for investors.

Binh Dinh Provincial People's Committee has just sent report No. 6997/UBND-KT to the Ministry of Construction on reporting data on the implementation of the project "Investing in the construction of at least 1 million social housing apartments for low-income people and industrial park workers" in the province.

Accordingly, from 2021 to present, Binh Dinh province has completed and put into use 3 social housing projects and a part of 1 social housing project, with 1,841 units, total investment of 1,797 billion VND. Currently, construction has started on 3 social housing projects and a part of 1 project, with 3,586 units, total investment of 3,102 billion VND.

In addition, Binh Dinh has bid to select investors, approved investors for 28 projects, about 24,675 apartments, with a total investment of about 13,990 billion VND. In addition, this province has reviewed and arranged 22 locations, land funds for social housing planning, an area of about 111.19 hectares, expected to develop about 16,703 apartments/houses, with a total investment of 8,821 billion VND.

Binh Dinh province is determined to complete about 12,900 social housing units by 2025, 5 years earlier than the plan assigned to the province by the Prime Minister in the project "Investing in the construction of at least 1 million social housing units for low-income earners and industrial park workers" in the period 2021 - 2030.

Binh Dinh is determined to complete about 12,900 social housing units by 2025, five years earlier than the plan assigned by the Prime Minister. Photo: Thanh Tung

However, currently, the management and development of social housing and workers' housing in the province are facing some difficulties. For example, the Ministry of Construction has not yet issued guidelines on the support and incentive mechanism for investors of social housing construction projects to be allocated 20% of the total residential land area invested in building technical infrastructure systems within the project scope (including projects using 20% land fund) to invest in building commercial housing to offset investment costs. As a result, high housing prices have led to beneficiaries of social housing support policies, especially poor and near-poor households, low-income people, and workers having difficulty accessing housing to settle down and work with peace of mind.

From there, Binh Dinh province proposed to have open, suitable mechanisms and policies and simplify procedures to speed up compensation, site clearance, access to loans, support... to speed up the implementation of projects and supply products to the market.

Binh Dinh province recommends that the Government consider regulating a mechanism to support and provide incentives for social housing to ensure that businesses are encouraged to participate in the development of social housing and worker housing, contributing to reducing selling prices, rental prices, and hire-purchase prices of social housing.

At the same time, the Government considers a general policy to simplify the credit loan process, reduce intermediate steps and document components; limit additional requirements from banks related to increasing the counterpart capital limit for project owners who have provided 20% counterpart capital on the total investment capital for the project according to the provisions of law. In addition, no additional collateral is required other than the mortgage of the social housing project that is being funded by the bank.

The State Bank of Vietnam considers simplifying procedures related to lending by commercial banks participating in the VND 120 trillion credit program for investors and home buyers of social housing projects, worker housing, renovation and reconstruction projects of old apartment buildings according to Resolution 33/NQ-CP dated March 11, 2023 of the Government and procedures related to interest rate support from the State budget for loans of enterprises, cooperatives, and business households according to the provisions of Decree 31/2022/ND-CP dated May 20, 2022 of the Government.

Another noteworthy information, according to the leader of the Department of Construction of Binh Dinh province, in this province there are currently 5 social housing and worker housing projects that meet the conditions and criteria to benefit from the 120,000 billion VND credit program.

Specifically, the Tan Dai Minh 2 Social Housing Project (Lamer 2) is invested by Tan Dai Minh Investment Company Limited; the project has a total investment of 769 billion VND, the loan demand is 154 billion VND. The Ecohome Nhon Binh Social Housing Project is invested by Ecohome Nhon Binh Company Limited; the project has a total investment of more than 1,400 billion VND, the loan demand is 280 billion VND.

Next, the An Phu Thinh social housing apartment complex (in An Phu Thinh New Urban Area) is invested by An Phu Thinh Construction Investment Development and Tourism Joint Stock Company; this project has a total investment capital of 682 billion VND, the loan demand is 136 billion VND.

The social housing apartment complex in Area C of the North Ha Thanh River Urban - Commercial Area is invested by Phu Hiep Company Limited; the project has a total investment capital of 364 billion VND, the loan demand is 73 billion VND (all of the above projects are located in Quy Nhon City).

Finally, the social housing project under the planning of the Trade Union Institutional Area of Binh Dinh province is invested by IEC Construction and Electromechanical Investment Joint Stock Company; the project has a total investment capital of 1,128 billion VND, the loan demand is 789 billion VND.

Recently, in a report sent to the Ministry of Finance on the situation of production and business, construction investment, import and export and difficulties and obstacles in the area, the People's Committee of Binh Dinh province said that the State Bank branch in this province has directed commercial bank branches in the area to implement a credit program of 120,000 billion VND according to the instructions of the State Bank of Vietnam. As of August 31, credit institutions in Binh Dinh province are approaching businesses that are investors in need of loans for support.

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