Currently, the procedures related to investment in the development of social housing projects are equivalent to commercial housing projects, with many more detailed reviews. This makes businesses more difficult, and the project implementation time is extended.
Having broken ground since August 2022, the MR1 social housing project in Tan Thuan Tay Residential Area (District 7) headed by Xuan Mai Saigon Construction Investment Joint Stock Company is expected to provide 712 apartments to about 1,400 workers with average income with full amenities. However, since the groundbreaking ceremony, up to now, this land has been used as a parking lot, without any signs of a housing project about to be implemented.
Also in mid-2022, the Ho Chi Minh City Department of Construction and the investor Thien Phat Company held a groundbreaking ceremony and forced a trial deposit for the Workers' accommodation project at Linh Trung II Export Processing Zone, with a scale of 360 apartments, capable of accommodating 1,000 workers, with a total estimated investment of about 408 billion VND. This project was then stuck in place when it had not yet completed the construction procedures. This enterprise said that it has spent money to do fire prevention procedures, amend project designs and apply for procedures to issue certificates for 50-year leased land, but to date there are still problems.
The Le Thanh Tan Kien social housing project of Le Thanh Company in Tan Kien Commune (Binh Chanh District, Ho Chi Minh City) also held a grand groundbreaking ceremony more than last year, but until now, it is still stuck with procedures so it cannot be built. Although the investor has bought the land fund himself and has available capital, wanting to build social housing is still complicated in the procedures.
One of the biggest bottlenecks, according to Mr. Le Hoang Chau - Chairman of the Ho Chi Minh City Real Estate Association (HoREA), is the implementation of laws in implementing administrative processes and procedures for social housing projects, especially the lack of coordination and shirking responsibility between departments, branches, districts, and towns, leading to slow settlement of administrative procedures for social housing projects, taking a lot of time and discouraging businesses.
Mr. Le Hoang Chau said that HoREA has just sent a document to the Central Policy and Strategy Committee to propose a pilot program allowing the People's Committees of provinces and centrally run cities to be allowed to appoint investors for social housing construction investment projects, in case of using public land.
This comes from the fact that for social housing projects using public land, the 2023 Housing Law stipulates that bidding must be conducted to select investors. Mr. Le Hoang Chau, Chairman of HoREA, said that if 2 or more investors are interested in submitting applications, it will take a lot of time, because it will take a lot of time to organize bidding to select investors, at least more than 500 days.
Meanwhile, the 2023 Housing Law does not allow the provincial People's Committee to appoint investors for social housing projects. The prolonged bidding process requires the efforts of state agencies and investors.
Therefore, Mr. Chau believes that the competent authority should develop a "Pilot Resolution of the National Assembly" allowing the Provincial People's Committee to appoint investors for social housing construction investment projects in cases of public land use.
The appointment of a bidding process means that there is no need to conduct bidding to select investors according to the provisions of the Housing Law and the law on bidding.
If approved, this proposal will shorten the time for implementing administrative processes and procedures and reduce compliance costs for both the State and investors.
