Removing difficulties and obstacles, promoting the construction of 1 million social housing apartments

Also attending the meeting were Deputy Prime Minister Tran Hong Ha, Minister and Head of the Government Office Tran Van Son, Governor of the State Bank Nguyen Thi Hong, Minister of Finance Ho Duc Phoc, Minister of Construction Nguyen Thanh Nghi, Minister of Natural Resources and Environment Dang Quoc Khanh, President of the Vietnam General Confederation of Labor Nguyen Dinh Khang, and leaders of ministries, branches, and central agencies.

According to reports and opinions at the meeting, recently, the Government and the Prime Minister have paid great attention and issued 40 related documents directing the implementation of the Project to build at least 1 million social housing apartments, of which 14 documents were issued regarding credit for the implementation of the Project.

Ministries, branches, agencies and localities have made many efforts to implement the Project and the Prime Minister's conclusions at the Conference on removing difficulties and promoting the development of social housing on March 16, 2024 (according to Notice 123 of the Government Office dated March 27, 2024).

Ministries are developing and completing draft 14 Decrees guiding the Land Law, Housing Law, and Real Estate Business Law, including a Decree detailing a number of articles of the Housing Law on the development and management of social housing.

Regarding the results of implementing social housing projects from 2021 to present, through the synthesis of reports from localities, nationwide, 503 social housing projects have been implemented with a scale of 418,200 units (an increase of 4 projects, 6,950 units compared to the reporting time on March 15, 2024).

Of which, the number of completed projects is 75 projects with a scale of 39,884 units (an increase of 3 projects, 1,756 units compared to the reporting time on March 15, 2024). The number of projects that have started construction is 128 projects with a scale of 115,379 units.

The number of projects approved for investment policy is 300 projects with a scale of 262,937 apartments (there are 4 projects, 5,919 apartments newly approved).

Regarding the support capital of 120,000 billion VND according to Resolution No. 33/NQ-CP dated March 11, 2023 of the Government, the Ministry of Construction has reformed administrative procedures, adjusted and shortened the conditions for social housing project investors to borrow capital of 120,000 billion VND.

Currently, in addition to the four state-owned commercial banks (BIDV, Vietinbank, Agribank, Vietcombank), TPBank and VPBank have also registered to participate in the program with the registration amount of each bank being 5,000 billion VND.

Through synthesis, 30/63 People's Committees of provinces and cities have sent documents or announced on the electronic information portal the list of projects participating in the program with 72 projects; in which some provinces have announced many projects such as Hanoi (6 projects), Ho Chi Minh City (6 projects), Bac Ninh (6 projects), Binh Dinh (5 projects)...

To date, commercial banks have disbursed VND1,144 billion, including VND1,133 billion to investors in 11 projects; VND11 billion to home buyers in 4 projects.

However, many large provinces and cities with many industrial zones such as Hanoi, Ho Chi Minh City, Da Nang, Can Tho, Long An have low social housing implementation rates compared to the Project's targets. The disbursement of the 120,000 billion VND credit package for social housing is still slow. Enterprises investing in social housing have difficulty accessing land.

In his concluding remarks, Prime Minister Pham Minh Chinh emphasized that the development of social housing is a very humane policy of the Party and State, of great significance, contributing to concretizing and institutionalizing the Party's policy on social security, not sacrificing progress, fairness, and social security to pursue purely economic growth, with a consistent viewpoint that takes people as the center, the subject, the goal, the resource, and the driving force for development, leaving no one behind.

Developing social housing also contributes to promoting economic growth; supporting the disadvantaged, especially young families, people starting new families, workers in industrial zones and big cities, helping to relieve social tensions.

Ministries and sectors have actively participated, however, recently they have had to resolve, build and complete a series of legal bases related to this issue. Up to now, the agencies have submitted to the National Assembly to promulgate laws (Land, Housing, Real Estate Business, Credit Institutions), the laws have basically removed bottlenecks and obstacles in procedures, land... for social housing, the problem is to soon put the regulations into practice.

Along with that, it is necessary to diversify resources for social housing development, including resources from the State, people, society, credit institutions (including state and non-state commercial banks) to support both sellers and buyers. Localities must take drastic and active part with specific programs, plans and projects. Procedures and conditions for borrowers to invest in social housing and buyers, renters and hire-purchasers must be simpler.

Regarding specific tasks, with the requirement of greater determination, stronger, more positive, suitable and effective solutions, the Prime Minister requested the Ministry of Justice, the Ministry of Natural Resources and Environment, and the Ministry of Construction to urgently coordinate so that the Government can report to the National Assembly Standing Committee to include in the 2024 law and ordinance making program, submit to the National Assembly for decision on the development and promulgation of a Resolution allowing the Land Law, Housing Law, and Real Estate Business Law to take effect early from July 1, 2024, and early application of regulations on preferential policies for social housing projects (Housing Law), property mortgage rights, and land use rights of social housing projects (Land Law).

The Ministry of Construction, the Ministry of Natural Resources and Environment, and the State Bank focus on and prioritize the development and promulgation of Decrees guiding laws related to social housing in the spirit of cutting administrative procedures, enhancing decentralization, reducing time and costs for implementing social housing projects, and avoiding inconvenience and harassment for people and businesses. The Ministry of Natural Resources and Environment reviews the 20% land fund for social housing.

The Ministry of Construction shall preside over, regularly urge and coordinate with ministries, branches and localities to supervise the implementation of the Project to build at least 1 million social housing apartments and the tasks assigned by the Prime Minister in Notice 123; periodically report to the Prime Minister on the implementation results, focusing on urging localities to implement the target of building social housing in 2024 that has been synthesized, announced, reviewed, and synthesized data on the implementation of the Project to have a basis for monitoring, directing and urging; review and complete policies on renting, leasing, purchasing, promoting experience in implementing the previous credit package of 30,000 billion VND; guide localities in developing housing strategies; promptly complete the investment process for building social housing projects, promulgate according to authority or submit for promulgation, in which study the parallel implementation, simultaneously implementing procedures, promulgating standards and unified processes for localities across the country; Research on converting the purpose of housing in unused resettlement areas to social housing.

The State Bank is responsible for arranging credit for both buyers and sellers; urgently directs major state-owned commercial banks to join hands with businesses, research, develop, and provide credit packages for buyers, expand credit packages, extend loan terms to 10-15 years, with preferential interest rates 3-5% lower than normal commercial loans; presides over and coordinates with ministries to research and guide commercial banks to create conditions for businesses to mortgage and borrow capital to implement social housing projects more simply and conveniently.

The Ministry of Planning and Investment shall preside over and coordinate with the Ministry of Finance and the State Bank to urgently report to the Prime Minister to supplement the state budget capital to implement social housing loans through the Vietnam Bank for Social Policies for the 2024-2025 period.

The Ministry of Finance will study the establishment of a social housing fund and propose it before June 30, 2024; develop and guide localities to issue bonds for social housing.

Local Party committees and authorities must be more determined, make more efforts, and be more drastic, especially in centrally-run cities and provinces with strong industrial development, a large number of workers, and a large demand for social housing. Localities must urgently focus on planning social housing, selecting investors, approving buyers, and approving selling prices. These procedures must be done quickly and conveniently; review and supplement urban and industrial park planning, and reserve enough land for social housing; and coordinate with the Ministry of Finance to issue bonds for social housing.

The Prime Minister also requested businesses and project investors to establish schedules, prepare sufficient financial resources, apply new technology, shorten construction time; and publicly announce project information for the public to know. Media agencies should focus on disseminating mechanisms, policies, and administrative procedures, praising and encouraging good models and good practices.