Expecting immediate breakthrough in social housing development

On June 5, the Government Electronic Information Portal held a discussion on "breakthroughs in developing social housing". Delegates proposed many solutions to this issue.

People are hoping for a breakthrough in social housing development.

Information at the seminar showed that in big cities and industrial zones such as Hanoi , Ho Chi Minh City, Binh Duong, Dong Nai, millions of workers, even civil servants, have difficulty accessing housing. With an average salary of about 10-13 million VND/person, while the price of mid-range and high-end housing ranges from 30-35 million VND/m², even up to 50 million VND/m², owning a standard house (priced at about 2.5 - 3 billion VND) becomes out of reach. It is estimated that only about 10% of civil servants, laborers, and workers in urban areas have access to housing.

Expecting a breakthrough in social housing

Despite strong growth in the mid- and high-end housing segment, providing social housing for the majority of low-income people remains a major challenge.

Prime Minister Pham Minh Chinh signed a decision assigning targets for completing social housing in 2025 and the following years until 2030 for localities to add to their socio -economic development targets. Accordingly, the social housing target that localities must complete in the 2025 - 2030 period is 995,445 apartments, contributing to 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 2021 - 2030 period".

Guests attending the panel discussion

One of the important steps is that recently, the National Assembly passed Resolution 201/2025/QH15 on piloting a number of specific policy mechanisms for social housing development.

At the seminar, Deputy Minister of Construction Nguyen Van Sinh said that currently, 1,309 locations with a scale of 9,737 hectares of land have been planned for social housing nationwide. Nationwide, 686 social housing projects have been implemented with a scale of 627,867 units. Thus, the number of completed projects and construction commencements reached 51% of the target set for 2025 (428,000 units).

However, the development of social housing still has some shortcomings and limitations. In particular, the implementation of social housing investment projects still has many problems regarding procedures and processes that must be followed like a normal commercial housing project...

Therefore, delegates all agreed that Resolution 201 of the National Assembly can be considered a breakthrough resolution, aiming to remove the remaining procedures that hinder the investment and development of social housing, as well as solve the difficulties arising from practice. Notably, administrative procedures in the social housing sector will be cut and reformed (reducing about 200 days, equivalent to about 70% of the implementation time compared to current regulations); supplementing support policies on social housing...

Deputy Minister of Construction Nguyen Van Sinh

At the seminar, Vice Chairman of Bac Giang Provincial People's Committee Pham Van Thinh said that Bac Giang plans to build about 70,000 social housing units with about 110,000 billion VND in the period from 2021 to 2030. If Resolution 201 is applied, in July, Bac Giang will select about 15 investors with about 30,000 units; in the first quarter of 2006, all investors will be selected to develop about 70,000 social housing units to achieve and exceed the set target.

Currently, Bac Giang has established a Support Group for social housing projects, meeting once a month with the Vice Chairman of the Provincial People's Committee as the group leader, all problems are resolved in a very short time...

Proposal for social housing buyers to get low-interest, long-term loans

Mr. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association

Sharing at the discussion, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, said that Ho Chi Minh City can only build 6,000 social housing units in the 2021-2024 period. Therefore, he expects that Resolution 201 of the National Assembly will resolve the huge obstacles in the implementation of the current social housing development policy. In the 2021-2024 period, the whole country has only achieved more than 10% of the target of developing at least 1 million social housing units. For Ho Chi Minh City, compared to the additional target assigned by the Prime Minister to build 100,000 social housing units, the city has only achieved 6,000 units in the 2021-2024 period, equivalent to more than 6%.

"Thus, the goal of developing 1 million social housing units under the old mechanism is not feasible, so there must be a special mechanism like Resolution 201 of the National Assembly," Mr. Le Hoang Chau expected.

According to Mr. Le Hoang Chau, the current difficulty is still the preparation of land funds for social housing development, requiring localities to include it in their local socio-economic development plans to carry out site clearance. That is, when there is a National Housing Development Fund, there must also be a local housing development fund to carry out site clearance.

On the other hand, investors must be able to borrow preferential loans from the Social Policy Bank; at the same time, social housing buyers can borrow at an interest rate of 4.8%/year as before, because the current rate of 6.6% is too high, and must borrow within 25 years...

PHAN THAO

Source: https://www.sggp.org.vn/ky-vong-co-dot-pha-ngay-ve-phat-trien-nha-o-xa-hoi-post798274.html