New policy changes, along with flexibility in investment procedures, are seen as a driving force for breakthroughs in social housing development in Ho Chi Minh City.
On November 21st, speaking at the seminar "Social Housing: Breakthroughs from New Policies" organized by the Nguoi Lao Dong Newspaper, Ms. Pham Thi Thu Ha, Deputy Head of the Social Housing Department - Department of Housing and Real Estate Market Management ( Ministry of Construction ), provided information on some new points in the policy for developing social housing.
Breakthroughs from policy
According to Ms. Ha, the 2023 Housing Law is groundbreaking as it emphasizes the role of local authorities in planning and allocating land for social housing development, aligning with the Investment Law at all stages from policy formulation to investor identification. Provincial People's Committees proactively identify land from commercial projects, outside of projects, or through payment to ensure responsibility for social housing development.
The law also expands investment forms, encourages the development of worker accommodation and housing for the armed forces, and increases incentives for investors. Specifically, investors are exempt from land use fees, enjoy a fixed profit margin of 10%, and can use 20% of the project area for commercial purposes, in accordance with the approved policy.
Furthermore, the law adds the Vietnam General Confederation of Labor and enterprises with foreign direct investment (FDI) to the list of entities investing in social housing. The scope of beneficiaries is expanded, allowing enterprises and cooperatives to rent social housing with relaxed residency and income requirements when purchasing or renting social housing. The maximum income for eligibility is also raised and made more flexible for each group, especially for the armed forces.
One breakthrough is the availability of capital, allowing investors and residents to borrow from banks to build, renovate, or purchase social housing, creating a significant impetus for project development. These changes, along with the plan to build 1 million social housing units and the upcoming National Assembly 's oversight resolution, are expected to soon put the policy into practice and develop sustainable social housing.
From a business perspective, Mr. Tran Quoc Dung, Deputy General Director of Hung Thinh Group, agrees with the groundbreaking new policies for social housing, but he also hopes that the authorities will expedite procedures to shorten the time and reduce costs for investors; creating conditions for investors to access land. Furthermore, for investors who have land and wish to develop social housing projects but are unsure whether it conforms to the planning regulations, the authorities need to provide answers and resolve the planning compliance issue and approve the investment policy so that the project can be implemented soon.
Mr. Truong Anh Tuan, Chairman of Hoang Quan Group, suggested that favorable policies such as loan interest rates for businesses and homebuyers should be retroactively applied. Furthermore, he proposed a mechanism allowing developers with clean land who wish to build social housing to factor the land price, including taxes, into the cost of the project.
Mr. Le Huu Nghia, Director of Le Thanh Real Estate Company, said that businesses want clearer regulations to facilitate implementation and avoid discrepancies between old and new laws in the post-project review phase of social housing development. Regarding credit capital, banks are currently providing very good loan support, but the problem lies in whether the project procedures are approved. Without transparency and clarity, encouraging investment in social housing in the future will face many difficulties.
Representatives from the Editorial Board and delegates exchanged views on the sidelines of a seminar organized by Nguoi Lao Dong Newspaper on November 21. Photo: HOANG TRIEU
Simplify procedures, increase incentives.
From a management perspective, Mr. Nguyen Van Hoan, Deputy Head of the Housing Development and Real Estate Market Department - Ho Chi Minh City Department of Construction, agrees with the need to shorten investment procedures. He said that recently, the Department of Construction has compiled opinions from various units and proposed integrating the three current investment procedures at the Department of Planning and Investment, the Department of Planning and Architecture, and the Department of Natural Resources and Environment to shorten the time, after which the Department of Construction will handle the construction permit issuance procedure.
According to Mr. Huynh Trinh Phong, Head of the Planning and Legal Affairs Department of the Ho Chi Minh City Department of Planning and Architecture, the city currently has two land funds for social housing projects: the 20% land fund in commercial housing projects that are still in arrears, and the second is land that social housing investors find, buy, transfer, or apply for investment in projects themselves.
Currently, the city is focusing on integrating updated social housing projects into the zoning plan. A new step forward is that by clearly defining specific locations and targets, there is no need to adjust local planning or coefficients.
Mr. Phong also suggested that the city review the land fund that has not yet fulfilled its social housing obligations, specifically the 20% land fund within commercial housing projects; find suitable alternative locations; include public land in the social housing land fund and introduce it to investors; and proposed that the city create a dedicated website for social housing so that those in need can search for information, and publicly announce projects so that people can easily access and choose them.
Mr. Tran Quang Thang, Director of the Ho Chi Minh City Institute for Economic and Management Research, hopes that the Government and relevant ministries and agencies will take stronger breakthroughs in promoting social housing development policies. This requires not only innovative thinking but also the collective efforts of the community to turn this humane policy into reality. In addition, city-level departments and agencies need to expedite investment procedures, creating a more favorable environment for projects. Simultaneously, the participation of local experts and organizations in contributing opinions, developing policies, and proposing appropriate solutions should be encouraged.
Nguoi Lao Dong newspaper thanks Vietcombank for accompanying the seminar "Social Housing: Breakthroughs from New Policies".
Overcoming difficulties with various specific solutions.
According to Bui Xuan Cuong, Vice Chairman of the Ho Chi Minh City People's Committee, the city has encountered many difficulties and obstacles in almost all stages of social housing development, from construction planning, land procedures, determining financial obligations, to determining the selling price of social housing. The allocation of land, attracting investment, and mobilizing other financial sources for project implementation are also major issues.
Faced with these bottlenecks, the city has implemented many specific solutions to overcome difficulties and accelerate progress. Regarding planning, Ho Chi Minh City is urgently submitting the Ho Chi Minh City Master Plan to the Prime Minister for approval until 2030, with a vision to 2050. Another very important task is to urgently finalize the revised master plan for Ho Chi Minh City. Currently, the city is focusing on completing it for submission to the Prime Minister in November.
Based on that, the city will concretize the zoning plan, clearly identifying locations for social housing, thereby prioritizing the development of new areas or reusing old locations, ensuring legal compliance with planning regulations during the construction process.
Regarding investment, the process of approving policies and recognizing investors for social housing projects remains complex, requiring coordination among many departments and agencies. To address this issue, Ho Chi Minh City has established a special task force headed by a leader from the Department of Planning and Investment. This task force will focus on resolving investment-related issues, shortening processing times, and gathering inter-agency opinions.
Regarding land, social housing projects are exempt from land use fees, but it is still necessary to expedite the completion of land allocation procedures and allow the conversion of land use purposes from agricultural land to non-agricultural land to implement the projects.
In addition, the Ho Chi Minh City People's Committee has assigned the Department of Construction to coordinate with the Ho Chi Minh City Labor Union to promote the construction of social housing, especially rental and rent-to-own housing models, in order to meet the great needs of workers and laborers.
Focus on developing rental properties.
Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, believes that developing social housing for rent should be considered the main direction. Recent surveys show that the demand for renting social housing among workers and laborers is much higher than the demand for buying. This is consistent with the financial capacity and living conditions of the majority of workers.
According to Mr. Chau, to promote the development of social housing, it is necessary to focus on core elements such as land allocation, credit support, and simplification of investment procedures. Land acquisition costs need to be calculated accurately and comprehensively, and loan interest rates should be reduced to create more favorable conditions. Developing social housing, especially in Ho Chi Minh City, is an urgent task requiring the joint efforts and support of the entire society to achieve the set goals.
Source: https://nld.com.vn/tim-don-bay-de-phat-trien-nha-o-xa-hoi-196241121223038311.htm
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