Too many problems, in 3 years Hanoi has only completed 4 social housing projects

According to a report by the Hanoi People's Committee, from the beginning of 2021 to the end of April 2023, the city had 4 social housing projects fully completed and 1 project partially completed, with approximately 4,168 apartments.

In addition, there are currently 40 projects underway, including 18 projects expected to be completed between 2021 and 2025 with approximately 2,137 apartments. 22 projects are expected to be completed after 2025 with approximately 22,400 apartments. Of these, 6 projects involve the construction of worker housing with nearly 8,000 apartments.

Due to numerous obstacles over the past three years, Hanoi has only completed four social housing projects (Figure 1). — The Hanoi People's Committee stated that current housing development faces many obstacles and difficulties, especially regarding regulations and legal issues. (Photo: ECH)

According to the Hanoi People's Committee, there are currently four main obstacles and difficulties in housing development.

Firstly, there are planning obstacles. The Hanoi People's Committee stated that the regulations on allocating land for social housing development in Decree 100 have many shortcomings, and many commercial housing development projects in suburban areas are not suitable for social housing, for example, Ba Vi, Ung Hoa, My Duc…

Furthermore, commercial housing projects with a scale exceeding 2 hectares but a small area of land for housing construction are still required by regulations to allocate 20% of the total land area with completed infrastructure for social housing. Therefore, the allocation of land for social housing within these projects is inappropriate and fragmented.

Secondly, the use of funds collected from land use fees to replace 20% of the land in commercial housing projects for the development of social housing with a land use scale of less than 10 hectares is not yet regulated by current law, while the city's financial resources for investing in social housing construction from the budget are limited.

Thirdly, regarding investment procedures, to accelerate the progress of social housing construction, regulations are needed to shorten the time for selecting investors for housing construction projects in general, and social housing construction projects in particular.

In cases where the investor selection process is conducted through bidding, separate bidding procedures should be stipulated, such as simplifying and shortening the sequence and timeframe for social housing projects.

Fourth, regarding the mechanisms and incentives for social housing construction investment projects, the Hanoi People's Committee stated that the 2014 Housing Law and Decree 49/2021/ND-CP stipulate that investors of social housing projects are supported by the provincial People's Committee with full or partial funding for the construction of technical infrastructure within the social housing project.

However, there are no specific regulations outlining the list of technical infrastructure items and works in social housing construction investment projects that are supported by the state budget. This would serve as a basis for state agencies to invest and support investment to attract investors to participate in social housing development.

Based on that, the Hanoi People's Committee proposes that the Ministry of Construction report to the Government to authorize Hanoi to proactively arrange alternative land for the construction of social housing for these projects in independent (concentrated) social housing areas within the city.

At the same time, the city is empowered to adjust the planning of industrial zones and export processing zones to supplement the land fund for building social housing for rent.

Hanoi also requested that central ministries and agencies promptly issue guidelines on the management and use of land use fees payable for the 20% land allocation in commercial housing and urban development projects, as stipulated by regulations.

Regarding difficulties and obstacles related to investment procedures, the Hanoi People's Committee recommends that the Ministry of Construction report to the competent authorities to issue regulations shortening the time for selecting investors for housing construction projects in general, and social housing construction projects in particular.

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