Soon start construction on social housing projects in some localities
Speaking at the Conference on Removing Difficulties and Promoting Social Housing Development chaired by the Prime Minister on the morning of March 16, Mr. Nguyen Viet Quang - Vice Chairman of VinGroup said that recently, Vinhomes Company of the Group VinGroup has started construction of 3 social housing projects in Hai Phong, Thanh Hoa, Quang Tri and Khanh Hoa.
It is expected that after completion, these projects will add more than 10.000 social housing apartments and housing funds in localities. At the same time, VinGroup is also continuing to carry out legal procedures to soon start social housing projects in Hanoi, Hung Yen, Ha Tinh, Ho Chi Minh City and other provinces and cities. .
Through actual implementation, Mr. Quang commented that the Government has many mechanisms and policies to support social housing development, creating a relatively complete legal corridor to support and encourage businesses to participate and social housing development.
Many social housing projects are exempt from land use fees, 50% reduction in value added tax and corporate income tax; Support investment in technical infrastructure inside and outside the project; preferential loans with low interest rates and policies to support customers and individuals in borrowing, buying, and renting social housing.
Mr. Nguyen Viet Quang - Vice Chairman of VinGroup spoke at the Conference.
Besides the positive points, a representative of VinGroup said that the implementation of social housing construction still faces many challenges.
Regarding procedures for implementing social housing projects, the number of social housing procedures is currently greater than that of commercial housing projects.
“General procedures such as planning approval, investment policy approval, bidding to select investors; When handing over land or leasing land, social housing projects require additional procedures to confirm subjects allowed to buy or rent social housing; Procedures for appraisal of selling price and rental price of social housing. This leads to lengthy social housing implementation procedures. The total time to complete social housing project procedures from the beginning of implementation to the start of construction is usually about 2 years," Mr. Quang stated.
Regarding preferential mechanisms Regarding commercial and service items within the scope of social housing projects, a Vingroup representative said that social housing projects are truly modern, civilized urban areas with full amenities to enhance the quality of life. To improve people's lives, in addition to improving the quality of social housing, the synchronous construction of technical infrastructure, social infrastructure, commercial services to serve the people is very necessary, especially especially large-scale social housing.
However, the support policy for investment in construction of these projects is not clear. Therefore, if investors make synchronous investments in these projects, it will easily lead to increased costs and increased selling prices of social housing.
Regarding capital investment in social housing, based on the review, investment capital for high-rise housing construction is currently lower than investment capital for commercial housing. Meanwhile, the cost and actual investment capital of commercial housing are higher than the investment capital according to regulations.
Mr. Quang said that this affects the quality of social housing projects and creates revenue difficulties for investors in social housing projects because the determination of selling price must be based on the basis of investment capital.
Regarding capital sources for investing in construction, buying and renting social housing, in fact, access to loan sources is still not favorable. In addition, the interest rates for preferential loans for construction investment as well as for renting and buying social housing are currently still high. For investors, the interest rate is 8%/year, for customers buying social housing 7,5%/year.
Also sharing about the above issue, Mr. Nguyen Van Thanh Huy - Deputy General Director of Becamex Corporation said that up to this point, the Corporation has built over 45.000 apartments that are both worker housing and social housing. and also clearly determined that in the first period, focus on developing worker housing to stabilize working life in the provinces to work in Binh Duong.
In Binh Duong, workers' housing is mainly for rent, but social housing in Binh Duong aims to stabilize general social security, meaning workers own it. In 2024, Binh Duong province's priority will continue to start construction on 10.000 social housing units.
“In the first quarter, we will immediately start construction on 2000 apartments. Regarding capital sources, the province prioritizes balancing resources, calling for the companionship of commercial banks to deploy and implement these projects," Mr. Huy said.
Loan interest rates are still high
In order to attract investors to participate in social housing investment projects and reduce social housing prices, from a business perspective, Vingroup representatives made a number of recommendations.
First, Consider minimizing procedures related to investing in the construction of social housing projects.
Monday, promulgate a list of technical and social infrastructure items that receive investment support from the budget, land rent exemption and reduction for areas of commercial service works within the scope of social housing projects festival.
Tuesday, Adjust investment capital for social housing projects to suit reality.
Wednesday, Research and adjust loan interest rates for construction investment as well as for buying and renting social housing. Based on the implementation budget, consider or compensate for interest rate differences if the investor sees customers borrowing capital from commercial banks to invest in construction and rent or buy social housing.
Mr. Nguyen Van Thanh Huy - Deputy General Director of Becamex Corporation.
Becamex representative also stated that in the process of implementing social housing projects, Becamex encountered the problem that loan interest rates for workers were still high and secondly, the loan period for workers was still short.
"Through monitoring and research, if we extend the loan period for workers, it will create great conditions for workers to own social housing," a Becamex representative proposed.
