The government plans to have a pilot policy to develop social housing.

This is one of the solutions to comprehensively remove difficulties and restructure housing products mentioned in the draft Resolution to remove difficulties forreal estate marketThis draft was released after the conference to solve difficulties for the real estate market held by the Government on February 17.

The Government said it will study and propose the National Assembly to issue a separate resolution on piloting a number of policies to promote the development of social housing. Accordingly, the proposed policies will resolve bottlenecks in land allocation for construction investment in the direction of land allocation without collecting land use fees, and investors are allowed to transfer social housing associated with the transfer of land use rights.

The Provincial People's Committee will be responsible for arranging and ensuring land funds for social housing development in the area. Local authorities and the Vietnam General Confederation of Labor are allowed to participate in investment and construction.social housingin industrial park

The selection of investors will be through bidding or acceptance of investment policy. Investors of social housing projects will be approved for investment policy if they have land use rights in accordance with the planning, land use plan, urban construction planning, and social housing development program of the locality.

Le Thanh An Lac social housing area, Binh Tan district, Ho Chi Minh City. Photo:Quynh Tran

The social housing investor will be allocated the entire floor area of ​​the project to serve as a service floor - commercial business, public services (health, culture, sports...), separately accounted for and enjoy all profits from this area. With the area used for social housing, the investor will enjoy the standard profit according to the provisions of the Housing Law.

The investor of a social housing project shall develop a price plan and submit it to the competent authority for appraisal at the time the housing is eligible for sale, lease or hire purchase. In particular, the selling, leasing or hire purchase price of social housing is calculated based on determining sufficient housing maintenance costs, costs to recover construction investment capital, loan interest (if any), reasonable costs of the enterprise, standard profits according to regulations and excluding incentives from the State.

To have capital to develop 1 million social housing units by 2030, the Government will propose that the National Assembly allocate a credit package of about VND110,000 billion (about 10% of capital demand for the period 2022 - 2030) to commercial banks to lend to social housing projects and workers' housing projects in the form of refinancing. This form is similar to the VND30,000 billion package implemented in the previous period 2013-2016.

Of which, project investors will receive preferential loans of 50% of the above credit package, equivalent to VND55,000 billion. The remaining credit, VND55,000 billion, will be for home buyers.

Commenting on this credit package, at the conference on removing obstacles and promoting the development of the real estate market on February 17, Dr. Can Van Luc, Chief Economist of BIDV Bank, said that the Government should learn from the Singapore and South Korean models to develop social housing and learn from the shortcomings when implementing the previous VND30,000 billion package.

Although it is necessary to have a separate credit package for social housing and workers' housing, State Bank Governor Nguyen Thi Hong said that the capital source for this package needs to be carefully considered. Ms. Hong said that 4 state-owned commercial banks have agreed to allocate a credit package of 120,000 billion VND for this sector, with lending interest rates 1.5-2% lower than the average market interest rate for home builders and home buyers.

Also according to the draft Resolution, the Government proposes comprehensive solutions to remove legal and capital obstacles - the two biggest bottlenecks of the market today.

Regarding capital, businesses and real estate projects serving consumption, production, industry, and resort tourism facing difficulties will be considered for deferment of principal and interest payments.

In addition, real estate projects with feasible loan plans, customers with financial potential, and the ability to repay debts in full and on time will be considered for continued credit. Priority will be given to lending to real estate projects serving consumption and with good liquidity such as social housing, renovation of apartment buildings, office buildings for rent, and industrial real estate.

The Government also requested the State Bank to direct commercial banks to take measures to reduce lending interest rates to support the real estate market.

Regarding bonds, the Government assigned the Ministry of Finance to guide capital mobilization, including bond issuance, by real estate enterprises on the stock market and control this mobilization to avoid speculation, manipulation, and price inflation. However, the Government noted that control measures must not prevent capable enterprises with good business performance from mobilizing capital for recovery and development.

The Ministry of Finance is also assigned to inspect the issuance, investment and provision of corporate bond services, especially individual bonds of real estate enterprises and credit institutions, and enterprises with large issuance volumes and without collateral.

For localities, the Government assigned them to urgently review and make a list of housing and real estate projects; establish and approve land use planning, develop 5-year and annual housing development plans to serve as a basis for approving project policies and increasing supply to the market.

Localities increase land use rights auctions, bidding for projects using land, approving investment policies, selecting investors, especially determining land prices, calculating land use fees, and taxing land for project implementation to increase market supply./.