Minister of Construction Nguyen Thanh Nghi said that the implementation of the Project "Investing in the construction of at least 1 million social housing apartments in the 2021-2030 period" faces many difficulties, notably limited land funds, complicated legal procedures and capital sources that have not met the demand.
To resolve the above problems, the Ministry of Construction has proposed and issued many preferential policies on land, tax and credit. It is known that the Ministry of Construction is proposing to issue 100,000 billion VND in government bonds to provide financial support for social housing development.
The draft resolution on this preferential capital source is being consulted by the Ministry from ministries and branches before submitting it to the Government for promulgation. The resolution aims to ensure capital for the project to invest in building at least 1 million social housing units for low-income people and industrial park workers in the 2021-2030 period.
Regarding the proposal to add a credit package of 30,000 billion VND for social housing development, with more incentives for home buyers, Mr. Vuong Duy Dung - Deputy Director of the Department of Housing and Real Estate Market Management (Ministry of Construction) informed: To implement the project of 1 million social housing units, the Ministry of Construction and other ministries have deployed many solutions to implement, including deploying a credit package of 120,000 billion VND for social housing development.
This package is implemented in the spirit of banks proactively balancing, the budget does not support so short-term loan incentives are given, 3 years for investors, 5 years for buyers. This package does not ensure enough incentives for home buyers who are low-income people and industrial park workers.
Therefore, to increase incentives, the Government is assigning the Ministry of Construction to study a VND30,000 billion loan package for social housing purchases, including VND15,000 billion in government bonds and VND15,000 billion from local budgets to support low-income people and workers to buy social housing. Thereby, helping low-income people to access cheap capital to buy houses.
According to Mr. Vuong Duy Dung, the 30,000 billion VND credit package must be implemented in accordance with other laws. The Ministry of Construction is working with the Ministry of Finance and the State Bank to soon implement this credit package.
Over the past year, the Ministry of Construction has also proposed to shorten the time for project appraisal and approval, simplify administrative procedures, and apply a one-stop mechanism to help reduce the time from project initiation to project implementation. At the same time, the Ministry has requested localities to proactively allocate clean land for social housing development, ensuring that people's housing needs are met.
Minister Nguyen Thanh Nghi said that the Ministry of Construction, together with ministries, branches and localities, will focus on implementing Directive 34 of the Secretariat on strengthening the Party's leadership over social housing development in the new situation. At the same time, it will implement the National Assembly's supervisory resolutions on this topic and the programs, projects and directive plans of the Government and the Prime Minister on social housing development.
Focus on leading and directing the development of social housing, identifying social housing development as a political determination, an important task of the entire political system, and one of the key tasks that need to be prioritized in the socio-economic development of localities; include social housing development targets in the system of 5-year and annual socio-economic development targets of each locality. Develop diverse types of social housing to be able to buy, rent, and rent-to-own accommodation, increasing the rate of social housing for rent.
Fully issue guiding documents and newly approved legal regulations related to social housing development.
Capital Law creates favorable conditions for social housing development
According to the report of the Hanoi Department of Construction, in the period of 2021-2030, Hanoi has been implementing 63 social housing investment projects with about 61,900 apartments. In 2024 alone, the city plans to complete about 10,000 social housing apartments in 7 projects, of which 3 projects are under implementation, expected to complete 78,000m2 of floor space with 1,180 apartments; 4 new development projects with 0.7 million square meters of floor space, about 9,000 apartments.
Faced with common difficulties related to mechanisms and policies for social housing development, the Law on the Capital (amended) recently passed by the National Assembly has new points regarding mechanisms and policies for social housing development.
According to Director of Hanoi Department of Construction Vo Nguyen Phong, the amended Law on the Capital helps speed up the progress of investment project preparation and licensing for social housing construction investment projects, increasing the supply of social housing in the capital, meeting the current urgent needs.
Mr. Nguyen Ba Nguyen - Deputy Director of the Hanoi Department of Planning and Architecture commented that with the new policies stipulated in the Housing Law No. 27/2023/QH15 along with the additional regulations included in the Capital Law (amended), it will overcome the shortcomings, creating favorable conditions for the Capital in developing social housing...
With the promotion of decentralization, delegation of authority and specific provisions on social housing in the Capital Law (amended), it will be a huge step forward in policy to create outstanding mechanisms, creating attraction in the process of attracting investment in social housing development in the coming time. HANH AN
