Social housing supply will be better and more accessible

Deputy Minister of Construction Nguyen Van Sinh informed the press. Photo: VGP/Nhat Bac

Answering the question related to the urgent need to build social housing, especially after the fire on Khuong Ha Street (Thanh Xuan, Hanoi ), Deputy Minister of Construction Nguyen Van Sinh said that currently, the law on housing, especially related to the development of social housing, has clearly stipulated the forms of investment in developing social housing projects, including state resources as well as mobilizing other resources, other capital enterprises, without any limitation.

Regarding the fact that many businesses are still not "interested" in investing in projects, Deputy Minister Nguyen Van Sinh emphasized that the law has stipulated the allocation of land funds for investment in social housing development, previously 20% of the area in basic housing projects.

“Currently, the 2014 Housing Law has been amended in the direction of assigning local People's Committees to allocate sufficient land funds according to housing development plans, sufficient land funds in independent areas as well as in commercial housing projects if suitable to conditions and planning. Thus, the land fund for social housing investment in the coming time will be more complete and more accessible” – the Deputy Minister of Construction affirmed.

Referring to incentives for investors building social housing - which has been a topic of great interest recently, Deputy Minister Nguyen Van Sinh said that the regulations are very clear about incentive policies, including exemption from land use tax, exemption from income tax, 10% profit, preferential loans... In the past, many investors have participated.

Regarding solutions to accelerate the construction of social housing in the coming time, Deputy Minister Nguyen Van Sinh said that the Government will submit to the National Assembly the Housing Law (amended), with more active support such as support for exemption of land use fees, corporate income tax, VAT, reserving 20% of land area for investors to invest in commercial and service areas, and receiving support from localities to invest in technical infrastructure in urban areas...

“During the process of amending the law, there were many opinions asking why not raise the profit to 15%? We have surveyed and found that this will increase the selling price of houses for low-income people. In the current period, businesses also find that a profit of 10% is acceptable. What businesses need is administrative procedure reform, and localities must actively participate in solving this problem. At that time, investment activities will be promoted and the participation of businesses will be greater,” the Deputy Minister of Construction explained.

In addition, according to the Deputy Minister, businesses are also provided with access to, support, and preferential interest rate loans... For social housing alone, there is a VND120 trillion support package for investors to borrow at preferential interest rates, 1.5-2% lower. These are timely policies.

According to the assessment of the leaders of the Ministry of Construction, many enterprises have actively invested. It is certain that in the coming period, the supply of social housing will be better. In particular, the Government has recently signed an investment plan for at least 1 million social housing apartments by 2030 with very synchronous solutions, which will be synchronous in terms of institutions, administrative procedures, capital sources, and land.

“In the near future, the 6th session of the 10th National Assembly will pass the Housing Law (amended), in which the group of social housing policies will take effect immediately. I believe that in the coming time, social housing will develop well and meet current needs,” said the Deputy Minister./.

Source dangcongsan

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