Proposal to increase profit margin when investing in social housing construction to 15%

Continuing the working program of the Vietnam Socio -Economic Forum 2023 on the morning of September 19, the Thematic Workshop Session 2 took place with the theme "Improving labor productivity, ensuring social security in the new context".

Responsibility of localities

Moderating the discussion, Deputy Head of the Central Economic Commission Nguyen Duc Hien said that to successfully implement the goal of developing social housing, the role of localities is extremely important.

In recent times, Hanoi has been one of the localities interested in developing social housing by taking the lead in building and promulgating the Housing Development Program according to the provisions of the Housing Law.

The Deputy Head of the Central Economic Commission asked Mr. Mac Dinh Minh - Deputy Director of the Hanoi Department of Construction to say, from the local perspective, what new and breakthrough points should the social housing policy in the draft Housing Law (amended) have to encourage localities and attract the wide participation of economic sectors in the development of social housing?

Real Estate - Proposal to increase profit margin when investing in social housing construction to 15% — Mr. Mac Dinh Minh - Deputy Director of Hanoi Department of Construction.

From a local perspective, Mr. Mac Dinh Minh - Deputy Director of Hanoi Department of Construction said that according to the housing development strategy, the city's goal is to develop 6.8 million square meters. "This is a big target," said Mr. Minh.

To achieve this goal, according to Mr. Minh, it is necessary to propose and advise on policies to attract investors from all economic sectors to participate. In particular, the City recommends that there should be solutions to reform procedures, especially in selecting investors to participate in social housing projects.

Regarding land use fees collected from 20% of land fund for social housing development in commercial housing areas, Hanoi proposed amending Clause 3, Article 81 of the draft Housing Law (amended), allowing this amount to be used through the local housing development fund to develop investment or provide preferential loans for social housing development.

Along with that, Mr. Minh proposed to increase the standard profit of investors participating in social housing construction investment to 15% (previously regulated at 10%).

Proactively allocate land for social housing

At the workshop, Deputy Minister of Construction Nguyen Van Sinh shared new points in the content of regulations on social housing of the draft Law on Housing (amended) compared to the current law.

Mr. Sinh said that the Government has submitted to the National Assembly the draft Law on Housing (amended), which was discussed at the 5th Session and is expected to be approved at the 6th Session. The draft law has 8 policy groups, including policies on social housing development.

The Government directs to ensure the principle of consistency with the Laws on Land, Investment, Construction, Real Estate Business, as well as reform administrative procedures, unlock resources, and have policies to encourage businesses to actively participate in investing in social housing projects.

Real estate - Proposal to increase profit margin when investing in social housing construction to 15% (Figure 2). — Deputy Minister of Construction Nguyen Van Sinh spoke at the Forum.

The Deputy Minister of Construction stated that the Government submitted to the National Assembly additional housing policies for workers in industrial parks, including social housing and accommodation, and housing policies for armed forces...

In particular, reserving land for social housing, the provincial People's Committee is assigned to proactively reserve enough land to develop social housing according to the approved plan, so that land can be reserved in commercial housing projects or independent projects for social housing.

Along with that is a group of preferential policies for investors participating in social housing projects such as exemption of land use fees, loans with preferential interest rates...

Regarding beneficiaries of social housing policies, Mr. Sinh said that the draft law reduces procedures for determining who can buy social housing and removes criteria on residence. Thus, Vietnamese citizens only need to meet income and housing requirements.

In addition, the draft law also reforms administrative procedures on investment, land allocation, investor selection, and determination of selling prices and lease-purchase prices. The Deputy Minister of Construction believes that these amendments will create an open mechanism to promote social housing in the coming time .

See also:

6 typical barriers of Vietnamese enterprises

Credit resources are available to support and expand businesses.

“Vietnamese businesses are resilient, long-lived but slow to grow”

The situation of "having money but not being able to spend it" is still common.

Source