Reporting at the National Assembly's supervision session on the implementation of policies and laws on real estate market management and housing development from 2015 - 2023, the representative of Ho Chi Minh City Department of Construction said, Development Plan Ho Chi Minh City housing period 2021 - 2025 has a list of 68 projects and land plots that are being implemented and expected to develop social housing and worker housing. However, the biggest difficulty today is the lack of investment capital from the state and state budget, so it cannot be fully allocated to build state-owned social housing programs.
The city can only allocate 10% of capital to implement social housing programs. From now until 2025, according to the planned program, 37,700 billion VND is needed, but the city is only able to meet the budget allocation of about 3,770 billion VND. By 2030, the city needs a capital of 86,400 billion VND, but the city can only allocate 8,600 billion VND from the budget. The rest can only be used from social capital sources.
A number that is too different and shows that the goal of building social housing will not be achieved without other sources of support. The most feasible solution is the cooperation of real estate businesses with available land funds that can participate in social housing development.
However, because the project has state incentives, administrative procedures arise to avoid policy profiteering, leading to more expenses than commercial housing projects, which have not attracted investors. Obstacles and difficulties in the project implementation process have not been resolved promptly and must wait for amendments to laws, decrees, and circulars, leading to slow implementation progress.
An enterprise specializing in developing social housing said that currently, social housing investors who borrow money cannot mortgage the project but must mortgage another project, so this is an inadequacy. In addition, incentives for investors are not attractive enough. Currently, the profit regulation for social housing projects is only 10%. while there are many unnamed costs.
Or like social housing projects that enjoy incentives to increase land use coefficient or construction density up to a maximum of 1.5 times, but according to Mr. Le Huu Nghia - Director of Le Thanh Real Estate Company, To enjoy this incentive, businesses spend a lot of time, some projects take several years just to apply for an adjustment in the number of floors. If a housing project lasts too long, it will cause huge damage to the investor.
Besides, businesses are also feeling worried when the new guiding decrees, although removing procedures, reduce previous incentives. For example, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, said that the adjustment to increase the coefficient will help increase the supply of social housing in the project and preferential policies for investors of this type of house. This has been applied for the past 10 years, but in the latest draft Decree on social housing development and management, the Ministry of Construction removed this regulation, causing concern.
Mr. Le Hoang Chau proposed that it is necessary to continue to allow social housing projects to enjoy the above preferential policies because it will help increase investment efficiency and attract resources to this housing segment. According to Mr. Chau, social housing projects can increase by several hundred, even thousands of apartments compared to commercial housing if they increase construction density or land use coefficient. If abandoned, businesses with available land funds will prioritize building commercial housing, because it is easier to do and has higher economic efficiency, instead of choosing social housing, which is bound by many regulations.
