On the afternoon of April 21, Central Party Committee member and Deputy Prime Minister Ho Duc Phoc met with relevant ministries and branches on studying the establishment of a housing development fund (including social housing; housing for workers; housing for young people under 35 years old to rent or buy...).
On January 8, 2025, the Ministry of Finance submitted a report to the Government leaders on the Project to study financial institutions for social housing development. In this submission, the Ministry of Finance reviewed all legal provisions on financial mechanisms for social housing development.
Accordingly, currently at the central and local levels, there are financial institutions as well as preferential lending policies for the development of social housing, in addition to credit programs of the commercial banking system.
However, the biggest problem in recent times is the limited preferential lending capital.
Therefore, to ensure feasible, fast and effective implementation, the Ministry of Finance proposes that instead of establishing new financial institutions, it should use the existing system of financial institutions to implement social housing development loans and recommend that the central and local governments prioritize resources and support mechanisms for these institutions to expand social housing lending activities.
The report of the Ministry of Finance also clearly states the current situation of difficulties related to the development of social housing and international experience.
Based on reviewing the entire legal system and financial institutions at the central and local levels, the Ministry of Finance submitted a plan on a financial mechanism to support the development of social housing and the orientation to establish a national housing development fund.
Concluding the meeting, Deputy Prime Minister Ho Duc Phoc stated that the establishment of a housing development fund to carry out the task of developing social housing, housing for workers, people under 35 years old who rent to buy, buy houses... has a political basis, legal basis and practical basis. Therefore, the fund's name is unified as "National Housing Development Fund".
The National Housing Development Fund is a state fund outside the budget, established by the state (not coincident with the task of state budget expenditure).
It is expected that the resources of the National Housing Development Fund will be mobilized from the following sources: State budget; Mobilized from voluntary contributions from domestic and foreign investors; revenue from 20% of land fund to build social housing in commercial housing projects according to regulations; sources mobilized from contributions from organizations and individuals; other legal sources.
Regarding the functions, tasks, scope, and management model of the National Housing Development Fund, the Deputy Prime Minister stated that the main function of the National Housing Development Fund is to invest in developing social housing, workers' housing; housing for young people under 35 years old.
The National Housing Development Fund has 2 levels. The central level is managed by the Ministry of Construction; locally, the provincial People's Committee is managed.
The Deputy Prime Minister assigned the Ministry of Construction to absorb the opinions expressed at the meeting to complete the Project to establish a National Housing Development Fund and the draft Decree to submit to competent authorities for consideration and decision.
