Need to diversify resources for social housing development

On the evening of May 17, at the Government headquarters, Prime Minister Pham Minh Chinh chaired a meeting with ministries and branches to discuss solutions to remove difficulties and obstacles in investing in social housing development, implementing the Project "Investing in the construction of at least 1 million social housing apartments for low-income people and industrial park workers in the period of 2021-2030." Also attending were Deputy Prime Minister Tran Hong Ha, leaders of ministries, branches and central agencies.

Recently, the Government and the Prime Minister have paid great attention and issued 40 related documents directing the implementation of the Project to build at least 1 million social housing apartments, of which 14 documents have been issued regarding credit for the implementation of the Project. Ministries, agencies and localities have made great efforts to implement the Project, the Prime Minister's conclusion at the conference on removing difficulties and promoting the development of social housing on March 16. The ministries are developing and completing the draft of 14 decrees guiding the Land Law, Housing Law, and Real Estate Business Law, including the Decree detailing a number of articles of the Housing Law on the development and management of social housing.

As a result, nationwide, 503 social housing projects have been implemented with a scale of 418,200 units (an increase of 4 projects, 6,950 units compared to the reporting time on March 15, 2024), of which, the number of completed projects: 75 projects with a scale of 39,884 units (an increase of 3 projects, 1,756 units compared to the reporting time on March 15, 2024); the number of projects that have started construction: 128 projects with a scale of 115,379 units (there are 2 projects, 1,170 units newly started; there are 3 projects, 1,756 units due to moving to the completion stage compared to the reporting time on March 15, 2024; there is 1 project with adjusted data increasing by 1,031 units); Number of projects approved for investment policy: 300 projects with a scale of 262,937 units (4 projects, 5,919 units were newly approved; 2 projects, 1,170 units moved to the construction phase compared to the reporting time of March 15, 2024).

Regarding the support capital of 120,000 billion VND according to Resolution No. 33/NQ-CP dated March 11, 2023 of the Government: currently, in addition to 4 state-owned joint stock commercial banks (BIDV, Vietinbank, Agribank, Vietcombank), TPbank and VPBank have registered to participate in the program with the registered amount of each bank being 5,000 billion VND.

Up to now, only 30/63 Provincial People's Committees have sent documents or announced on the Electronic Information Portal the list of projects participating in the Program with 72 projects; in which some provinces have announced many projects such as Hanoi (6 projects), Ho Chi Minh City (6 projects), Bac Ninh (6 projects), Binh Dinh (5 projects)...

To date, commercial banks have disbursed VND1,144 billion, including VND1,133 billion for investors in 11 projects; VND11 billion for home buyers in 4 projects; of which Agribank has disbursed VND531 billion, Vietinbank has disbursed VND306 billion, BIDV has disbursed VND134 billion, Vietcombank has disbursed VND2 billion, Tien Phong bank has disbursed VND170 billion...

At the meeting, leaders of ministries and branches reported on the progress, difficulties and obstacles in implementing the Project "Investing in the construction of at least 1 million social housing apartments for low-income people and industrial park workers in the period of 2021-2030"; proposed to the Government and the Prime Minister a number of solutions to further accelerate social housing projects, focusing on solutions for accessing credit, land procedures, planning, investment, strengthening decentralization and delegation of authority; improving a number of incentive mechanisms and policies; the Ministry of Construction and localities reviewed the progress of social housing development, reported to the Prime Minister; the Ministry of Construction promptly completed the social housing investment process and submitted it to competent authorities for promulgation.

The State Bank of Vietnam directs commercial banks to study and develop credit packages for social housing buyers; urgently study and establish a social housing investment fund; localities must have plans and plans to allocate land funds for social housing development in suitable, convenient locations with full social infrastructure; allocate targets for completing social housing development investment for each locality.

Concluding the meeting, Prime Minister Pham Minh Chinh emphasized that the development of social housing is a very humane policy of the Party and State, of great significance, contributing to concretizing and institutionalizing the Party's policy on social security, not sacrificing progress, fairness, and social security to pursue purely economic growth, with a consistent viewpoint that takes people as the center, the subject, the goal, the resource, and the driving force for development, leaving no one behind.

In addition, developing social housing also contributes to promoting economic growth; supporting people in difficulty, especially young families, people who have just started families, workers and laborers in industrial parks and big cities, contributing to relieving social tensions.

In recent times, ministries and branches have actively participated in implementing the Party and State's policies and guidelines. Recently, they have had to resolve, build and perfect a series of legal bases related to this issue.

Up to now, the bottlenecks in land, procedures, issues related to real estate, housing... have been basically resolved. Agencies have submitted to the National Assembly for promulgation of laws (Land, Housing, Real Estate Business, Credit Institutions), the laws have basically resolved the bottlenecks and obstacles in procedures, land... for social housing, the issue is to soon put the regulations into practice.

However, it is necessary to diversify resources for social housing development, including resources from the State, people, society, and credit institutions (including state and non-state commercial banks) to support both sellers and buyers. Localities must take drastic and active action with specific programs, plans, and projects. Procedures and conditions for borrowers to invest in social housing and buyers, renters, and hire-purchasers must be simpler.

Regarding specific tasks, with the requirement of greater determination, stronger, more positive, suitable and effective solutions, the Prime Minister requested the Ministry of Justice, the Ministry of Natural Resources and Environment, and the Ministry of Construction to urgently coordinate so that the Government can report to the National Assembly Standing Committee to include in the 2024 law and ordinance making program, submit to the National Assembly for decision on the development and promulgation of a Resolution allowing the Land Law, Housing Law, and Real Estate Business Law to take effect early from July 1, 2024, and early application of regulations on preferential policies for social housing projects (Housing Law), property mortgage rights, and land use rights of social housing projects (Land Law).

The Ministry of Construction, the Ministry of Natural Resources and Environment, and the State Bank focus on and prioritize the development and promulgation of Decrees guiding laws related to social housing in the spirit of cutting administrative procedures, enhancing decentralization, reducing time and costs for implementing social housing projects, and avoiding inconvenience and harassment for people and businesses. The Ministry of Natural Resources and Environment reviews the 20% land fund for social housing.

The Ministry of Construction shall preside over, regularly urge and coordinate with ministries, branches and localities to supervise the implementation of the Project to build at least 1 million social housing apartments and the tasks assigned by the Prime Minister in Notice 123; periodically report to the Prime Minister on the implementation results, focusing on urging localities to implement the target of building social housing in 2024 that has been compiled, announced, reviewed, and synthesized data on the implementation of the Project to have a basis for monitoring, directing and urging; review and perfect policies on renting, renting-purchasing, and purchasing, and promote the experience of implementing the previous VND 30 trillion credit package.

The Ministry must guide localities in developing housing strategies; promptly complete the investment process for building social housing projects, promulgate them according to authority or submit them for promulgation, including studying the parallel and simultaneous implementation of procedures, promulgating unified standards and processes for localities nationwide; studying the conversion of housing use purposes in unused resettlement areas to social housing.

The State Bank is responsible for arranging credit for both buyers and sellers; urgently directs major state-owned commercial banks to join hands with businesses to research, develop, and provide credit packages for buyers, expand credit packages, extend loan terms to 10-15 years, and offer preferential interest rates of 3-5% lower than normal commercial loans; presides over and coordinates with ministries to research and guide commercial banks to create conditions for businesses to mortgage and borrow capital to implement social housing projects more simply and conveniently.

The Ministry of Planning and Investment shall preside over and coordinate with the Ministry of Finance and the State Bank to urgently report to the Prime Minister on additional state budget capital to implement social housing loans through the Vietnam Bank for Social Policies in the 2024-2025 period. The Ministry of Finance shall study the establishment of a social housing fund and propose it before June 30, 2024; develop and guide localities to issue bonds for social housing.

Local Party committees and authorities must be more determined, make more efforts, and be more drastic, especially in centrally-run cities and provinces with strong industrial development, a large number of workers, and a large demand for social housing. Localities must urgently and focus on planning social housing, selecting investors, approving buyers, and approving selling prices. These procedures must be done quickly and conveniently; review and supplement urban and industrial park planning, and reserve enough land for social housing; coordinate with the Ministry of Finance to issue bonds for social housing.

The Prime Minister also requested businesses and project investors to establish progress, prepare sufficient financial resources, apply new technology, shorten construction time, and publicly announce project information for people to know.

Media agencies focus on promoting mechanisms, policies, administrative procedures, praising and encouraging good models and good practices in social housing development.