Removing barriers, developing social housing from new resources and policies

(Chinhphu.vn) - With the goal of building 1 million social housing units by 2030, a series of specific policies are being proposed and developed. However, "bottlenecks" in procedures, land funds and capital still slow down the implementation speed, requiring synchronous solutions to remove them.

Workshop "Investment in social housing development: New context, new opportunities" - Photo: VGP/HT

Identifying the bottlenecks of social housing

In January 2023, the Prime Minister approved the Project to build at least 1 million social housing units (NOXH) for low-income people and industrial park workers in the period of 2021-2030. However, after more than three years, according to the Ministry of Construction , only 657 projects have been implemented and the number of completed units only reached 15.6% of the target by 2025.

At the workshop "Investment in social housing development: New context, new opportunities" organized by Nha Doi Tu Magazine on the afternoon of May 27, Ms. Tong Thi Hanh - Director of the Department of Housing and Real Estate Market Management, Ministry of Construction pointed out a number of reasons. First, the implementation organization is still inadequate, businesses face more difficulties when investing in social housing than in commercial housing. Next, investment procedures are lengthy, preferential policies are difficult to access, and the rental housing fund is not yet developed.

Not only that, the habit of owning private homes among the population is also a major barrier to the development of rental housing. Ms. Hanh emphasized that in order for people to feel secure in staying with a rented apartment for a long time, the State needs to create a breakthrough policy system with a long-term perspective. Therefore, in the new draft Resolution of the National Assembly , a notable proposal is to establish a National Housing Fund with the orientation of investing in rental projects, to support groups of people who cannot afford to buy a house.

In addition, the proposed capital for the Fund includes the state budget, resources from businesses, individuals and related organizations. This will be the foundation of a long-term social security policy - a new mechanism that Ms. Hanh believes will create a boost for social housing.

Ms. Tong Thi Hanh - Director of the Department of Housing and Real Estate Market Management, Ministry of Construction - Photo: VGP/HT

Need for substantial planning, open mechanisms and specialized capital funds

Providing a perspective from market reality, Dr. Nguyen Van Khoi - Chairman of the Vietnam Real Estate Association noted that many localities have not included social housing targets in their annual socio -economic development plans, causing progress to stagnate.

Mr. Khoi proposed that localities must clearly identify real housing needs that are suitable for people's income; at the same time, they must plan clean land funds with convenient transportation and social infrastructure.

Not stopping there, Mr. Khoi emphasized the need to add a mechanism to allow the conversion of commercial housing and resettlement housing projects into social housing to increase supply. Although the 2023 Housing Law has preferential provisions for investors, the regulations are still overlapping and lack specific guidance, causing confusion in many localities. Requiring investors to set aside 20% of their land fund for social housing without accompanying substantive support is also reducing investment attractiveness.

From there, Mr. Khoi proposed that Vietnam should maintain the orientation of the Social Housing Fund as in the draft, including support for building rental houses, low-cost houses for sale, and support for businesses and buyers. The proposed capital structure includes 30-35% from the budget, 40% from people and businesses that benefit, and the rest from sources such as collecting money equivalent to land funds or selling public assets.

Sharing the same view, Dr. Can Van Luc - Chief Economist of BIDV commented: Vietnam does not have a specialized National Housing Fund like developed countries. Mr. Luc analyzed that fund models in the international market often have five common points such as: The government plays a role in creating; The fund provides financial support for both the supply and demand sides; capital from the state budget and beneficiaries; support for both social housing and low-cost housing; and has an independent operating agency.

More importantly, Dr. Can Van Luc believes that the Fund should operate on a "revenue-expenditure" model, ensuring cost recovery, sustainability, and not for profit. Support forms must be diverse, from loans, guarantees, interest rate subsidies, land clearance investments, and prioritizing practical items that can be implemented immediately.

From the business perspective, Mr. Vu Quoc Huy - Deputy General Director of Taseco Land believes that simplifying procedures and quickly granting ownership certificates will help low-income people access social housing more easily. He hopes that the new Resolution will truly remove administrative obstacles and create the most favorable conditions for people.

Meanwhile, some other experts emphasize the need to reduce financial requirements for buyers. For example, loan interest rates should be fixed throughout the loan term or only equal to 50–60% of market interest rates; loan terms should be extended to reduce financial pressure on people and businesses.

In particular, when implemented through commercial banks, there should be a clear and transparent interest rate subsidy policy, settled in short cycles to create motivation for implementation. At the same time, the State needs to issue an effective inspection and supervision mechanism to ensure that the Fund is not misused.

Mr. Minh

Source: https://baochinhphu.vn/thao-go-rao-can-phat-trien-nha-o-xa-hoi-tu-nguon-luc-va-chinh-sach-moi-102250527195819057.htm