There are many obstacles in developing social housing
According to the Vietnam Association of Realtors (VARS), up to now, the results of implementing the 1 million social housing project are still far from the set target. VARS stated that the implementation of social housing policies still revealed some shortcomings and limitations that have not been overcome and resolved.
Accordingly, many localities have not yet arranged a reasonable land fund for social housing development. Some places have arranged land funds but lack infrastructure, which is not suitable for project implementation. Not to mention, the lack of a mechanism to attract land funds from the private sector to participate in the development of social housing continues to be an unresolved barrier.
In addition, investment procedures and selection of social housing investors are still complicated. Procedures for approving investors and implementing social housing projects are not much different from commercial housing projects, and are even more complicated, being "examined" more carefully due to having to go through specific appraisal steps. While profits are low, leading to investors not being interested in participating in development.
VARS believes that currently, the capital source and credit mechanism for social housing are not suitable. The development of social housing mainly relies on the self-made capital of enterprises and banks through credit loans. Despite many efforts to reduce interest rates, the interest rate of the VND120 trillion credit package for this particular segment is still high, short-term and not suitable for both investors and low-income home buyers.
The implementation of the Project also encountered difficulties due to the lack of support mechanisms in the locality. Many localities have not proactively included social housing development targets in the stage housing development plan, and have not issued specific mechanisms to support businesses in investing in social housing.
In particular, many localities still lack determination in implementing the Project. The work of identifying beneficiaries in some localities is still confusing and lacks detailed instructions. Some groups of seasonal workers, soldiers, people with salaries close to the prescribed threshold... have not yet accessed the policy.
At the same time, although the 2023 Housing Law and its guiding documents have had many positive adjustments and strong solutions for the social housing segment, there are still points that are not really suitable for reality such as the lack of detailed instructions in confirming eligible subjects for buying and renting social housing.
Many workers, even though they have urgent housing needs, cannot access social housing at their workplace or work because they do not meet the conditions for confirming their permanent or temporary residence status according to regulations; some groups of people are really disadvantaged but are excluded due to income criteria; the requirement for capital to have a minimum when borrowing to buy a house - 20% is a big challenge for low-income people, especially unskilled workers, young workers who have not accumulated; there is a serious shortage of social housing products for rent; there is no separate policy for the seasonal labor group.
New thinking is needed to remove existing concerns
To remove existing concerns, VARS proposes that localities need to plan and arrange specific and reasonable land funds for social housing development, including this target in the 5-year and annual housing development program.
To encourage businesses to participate in investing in social housing development, it is necessary to shorten the investment approval process, simplify procedures for selecting investors through a transparent and public bidding mechanism.
Regarding capital sources, it is necessary to build central and local social housing development funds, using land fund revenue, budgets, and contributions from businesses and industrial parks.
Localities must proactively issue support policies suitable to the specific needs of real estate: developing rental housing, diversifying models, selecting the right groups of subjects with real needs. And strengthen inspection, supervision and strictly handle acts of policy profiteering, harassment, and making implementation difficult.
Regarding output policies, it is necessary to be transparent and simplify procedures for determining beneficiaries, moving from the pre-inspection to post-inspection mechanism. There is a policy to support leasing - leasing for groups of workers who do not have enough financial capacity to buy a house. Build a national database system on social housing to ensure fairness, transparency and synchronization in access.
