The story of queuing to buy social housing and the commitment of many generations of Ministers of Construction

However, social housing projects are too few, making people's access difficult, and social housing development has not achieved the set goals.

Scene repeated after more than 10 years

In 2010, Hanoians lined up to submit applications to buy the first social housing project in the area - the CT1 Ngo Thi Nham housing project (Ha Dong district). After reviewing the scores of the home purchase applications, the selling unit had to draw lots to choose because the number of people in need was too high and the apartments were limited. Despite queuing, hopes for a support policy to help low-income people have a home were kindled.

The joy of those who won the lottery to buy social housing at CT1 Ngo Thi Nham in the hall. Low-income people have access to social housing at low prices, this is a humane and correct policy.

Hundreds of people waited in front of the lobby of building N09B1 in Dich Vong urban area to submit applications to buy the NHS Trung Van social housing project. (Photo: Thanh Nien Newspaper)

More than 10 years later, the same situation is still happening, the NHS Trung Van social housing project (To Huu street, Nam Tu Liem district) opened for sale, people lined up to submit their home purchase application from 2am.

With a rather modest number of apartments of more than 200, the investor opened for sale 157 social housing apartments and rented out 68 apartments, thousands of applications for purchase, the NHS Trung Van social housing project probably had to filter the applications and draw lots for the right to purchase.

So after more than 10 years, a humane policy to care for the lives of the poor and low-income people in urban areas is still at a standstill?

Commitments of many generations of Ministers of Construction …people are still weary

From 2010 to now, three generations of Ministers of Construction, from the time of former Minister Trinh Dinh Dung, former Minister Pham Hong Ha and the current successor Minister Nguyen Thanh Nghi, the National Housing Strategy or housing programs have all focused on social housing development policies. But it seems that the goal of developing social housing has not achieved good results.

Most recently, in November 2022, answering questions before the National Assembly , Minister of Construction Nguyen Thanh Nghi admitted that despite achieving initial results, the development of social housing has not met expectations: Up to now, the whole country has only 7.79 million m2 of social housing while the requirement is 12.5 million m2. The land fund for social housing also only meets 36.34%.

Minister of Construction, Nguyen Thanh Nghi answered questions before the National Assembly about social housing on November 3, 2022.

The Ministry of Construction also proposed a project to develop 1 million social housing units for low-income people and industrial park workers in the 2021-2030 period, which was approved by the Government (April 2023).

People are waiting for concrete actions, as a result the number of social housing projects and apartments has increased so that people no longer have to wait in line from night to morning to submit applications to buy social housing.

Stuck from policy to practice

Returning to the story of social housing development policies over the past 10 years, the number of projects has actually increased but quite modestly, the only bright spot of this process is the VND30,000 billion support package for buyers, renters, and rent-purchasers of social housing (in 2015-2016). Since the end of the support package, the number of social housing programs has decreased significantly.

For many years, the apartment market in big cities has been lacking in supply, especially low-cost housing. In fact, businesses are not interested in social housing because the project investment procedures are difficult, even more complicated than commercial housing projects, and the profit is much lower than commercial housing projects.

The legal framework ensures access to capital for people and businesses, but the implementation process is not balanced enough. The interest rate for loans for social housing construction is 14%, recently reduced to 12%, still considered "too high, inappropriate".

Dr. Dang Viet Dung, Chairman of Vietnam Construction Association. (Photo: Nguoidothi)

Land funds for social housing still do not meet the demand, and localities have not prioritized land funds for social housing development. Dr. Dang Viet Dung, Chairman of the Vietnam Construction Association, said that some localities have not paid due attention to directing the development of plans and programs for social housing and housing for workers, and have not proactively allocated enough land funds for social housing development when approving urban planning, rural construction planning, industrial park construction planning, and training and research areas according to the provisions of the Housing Law.

" Some localities even only rely on 20% of land for social housing obtained through the development of commercial housing projects and urban development projects, " said Dr. Dang Viet Dung.

According to Professor Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, it is necessary to reform administrative procedures and cut down procedures so that social housing projects can be implemented faster than normal commercial projects in order to attract investors.

“ Only the key points on procedures related to State incentives are needed, other contents operate according to market mechanisms. Regarding tax incentives, it is necessary to discuss with the Ministry of Finance to exempt value added tax and corporate income tax for the social housing development investment sector. In addition, it is necessary to supplement regulations on the quality and quality management of social housing, regulations on preferential policies associated with the quality of construction works ” - Professor Dang Hung Vo expressed his opinion.

Developing social housing is a humane policy, supporting low-income people to access housing, but people expect concrete results, not reports and projects on paper.

Hoai Lam (VOV.vn)

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Source: https://vtc.vn/cau-chuyen-xep-hang-mua-nha-o-xa-hoi-va-cam-ket-cua-nhieu-doi-bo-truong-xay-dung-ar783252.html