Social housing

Proposal to increase social housing investor profits to 13%

TB (summary) March 22, 2025 12:39

The Ministry of Construction is seeking opinions on the draft Resolution of the National Assembly on piloting a number of specific mechanisms and policies for social housing development.

Dự án nhà ở xã hội tại phường Long Trường, TP Thủ Đức
Social housing project in Long Truong ward, Thu Duc city, Ho Chi Minh city (illustrative photo)

The Ministry of Construction proposed assigning social housing project investors to select investors without bidding to reduce project implementation time.

The Ministry of Construction said that the selection of investors for social housing construction investment projects is in accordance with the provisions of Article 84 of the 2023 Housing Law. Although the bidding to select investors has been amended and supplemented to ensure consistency and consistency with the law on bidding, businesses still have to carry out administrative procedures and take a lot of time.

STTJob DescriptionImplementing unitImplementation time (days)Note
IApproval of investment policy and announcement of list of business investment projects45
IIPlease pay attentionArticle 37 of Decree 115/2024/ND-CP
IIIOrganizing bidding to select investors160
1Prepare bidding to select investors50
2Organizing bidding to select investors45
3Bid Evaluation20
4Submit, appraise and approve the results of investor selection25
5Negotiate, finalize and sign contracts20
Total bidding time to select investors in case of invitation of interest with 2 or more qualified investors286
Total time in case of unsolicited tender205
Total time in case of approval of investors to implement the project according to the Investment Law (result of invitation for expression of interest has only 1 responding investor)176

Source: Ministry of Construction

In addition, social housing projects must carry out investment approval procedures like commercial housing projects, with the participation and comments of many agencies such as the Ministry of National Defense, Ministry of Public Security, Department of Finance, Department of Agriculture and Environment, Department of Construction... which also wastes businesses' time.

In fact, at many seminars and conferences, the Ministry of Construction received many comments and recommendations from large enterprises, stating that the regulations on procedures and time to develop a social housing project are quite large.

According to estimates, in the case of a social housing project that has an approved construction plan, a housing development program and plan, and is included in the local land use list and plan, the implementation time in sequence - from the step of approving the policy to selecting and signing the project contract with the investor - is nearly 300 days.

In some localities, such as Ho Chi Minh City, if parallel procedures are flexibly implemented and the minimum implementation time as prescribed is applied, the total time for bidding to select investors (in case there are 2 or more qualified investors) will also be over 200 days.

Therefore, the Ministry of Construction assigned the investor of the social housing project not to select an investor through bidding under the authority of the provincial People's Committee.

In addition, the ministry also proposed assigning housing project investors to the people's armed forces under the authority of the Ministry of National Defense and the Ministry of Public Security.

The draft also proposes to increase the profit of social housing investors to 13%. Accordingly, based on the profit of 13% on the total project construction cost, investors will develop a price list for selling, leasing and renting social housing.

Currently, investors in social housing projects are limited to a profit margin of 10%. However, many businesses and experts consider that figure not attractive enough.

Draft Resolution of the National Assembly on piloting a number of specific mechanisms and policies for social housing development:

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Proposal to increase social housing investor profits to 13%