National Housing Development Fund will be established

Deputy Prime Minister Ho Duc Phoc met with ministries and branches to study the establishment of a National Housing Development Fund. Photo: VGP

Reporting at the meeting, Deputy Minister of Finance Ho Sy Hung said that implementing the Prime Minister's directive, the Ministry of Finance had discussed at the technical level with the Ministry of Construction to identify existing problems in the development of social housing. On that basis, the Ministry of Finance has sent a document to the Government leaders to report on the study of establishing a National Housing Development Fund.

Previously, on May 24, 2024, the Secretariat issued Directive No. 34-CT/TW on strengthening the Party's leadership over housing development in the new situation. Implementing the Directive of the Secretariat, the Prime Minister issued Decision No. 927/QD-TTg, assigning: The Ministry of Finance to preside over "researching the formation of a social housing development fund or a suitable financial institution model for long-term, sustainable social housing development"; The Ministry of Construction to preside over "researching the establishment and setting up the operating mechanism of a state-owned enterprise specializing in investing in social housing development".

In order to carry out the assigned tasks, on January 8, 2025, the Ministry of Finance submitted a report to the Government leaders on the Project on studying financial institutions for social housing development. In this report, the Ministry of Finance reviewed all legal provisions on financial mechanisms for social housing development.

Accordingly, at present, both central and local levels have financial institutions and preferential lending policies for social housing development, in addition to credit programs of the commercial banking system. However, the biggest problem in recent times is the limited source of preferential lending capital.

Therefore, to ensure feasible, fast and effective implementation, the Ministry of Finance proposes that instead of establishing a new financial institution, the existing system of financial institutions should be used to implement loans for social housing development and recommends that the central and local governments prioritize resources and support mechanisms for these institutions to expand social housing lending activities...

Based on a review of the entire legal system and financial institutions at the central and local levels, the Ministry of Finance also presented a plan on financial mechanisms to support the development of social housing and orientations for the establishment of a National Housing Development Fund.

At the meeting, representatives of the Ministry of Construction, the State Bank, the Ministry of Justice, and the Government Office exchanged and discussed the political basis, legal basis, and practical basis for establishing the fund; functions, tasks, organizational model, scale, service objects, governing body, fund establishment sources, etc. so that the fund can operate effectively and meet the set goals and requirements.

After listening to the opinions of the ministries and branches, in his concluding remarks at the meeting, Deputy Prime Minister Ho Duc Phoc stated that the establishment of a housing development fund to carry out the task of developing social housing, housing for workers, people under 35 years old to rent or buy houses, etc. has a political basis, a legal basis and a practical basis. Therefore, the fund's name was unified as "National Housing Development Fund".

The National Housing Development Fund is an extra-budgetary state fund established by the state (not overlapping with state budget expenditure tasks).

It is expected that the resources of the National Housing Development Fund will be mobilized from the following sources: State budget; Mobilization from voluntary contributions of domestic and foreign investors; revenue from 20% land fund for building social housing in commercial housing projects according to regulations; mobilized contributions from organizations and individuals; other legal sources.

Deputy Prime Minister Ho Duc Phoc stated: The main function of the National Housing Development Fund is to invest in developing social housing, housing for workers; housing for young people under 35 years old... The National Housing Development Fund has 2 levels. The central level is managed by the Ministry of Construction; at the local level, it is managed by the Provincial People's Committee.

The Deputy Prime Minister assigned the Ministry of Construction to absorb the opinions expressed at the meeting to complete the Project to establish the National Housing Development Fund and the draft Decree to submit to competent authorities for consideration and decision.

Source: https://thoibaonganhang.vn/se-thanh-lap-quy-phat-trien-nha-o-quoc-gia-163137.html