Prime Minister: Urgently develop investment projects to build at least 1 million social housing apartments

Prime Minister Pham Minh Chinh requested to urgently develop an investment project to build at least 1 million social housing apartments for workers and low-income people from now until 2030 - Photo: VGP/Nhat Bac

On the morning of August 1, at the Government headquarters, Prime Minister Pham Minh Chinh chaired a conference to promote the development of social housing for workers and low-income people.

After listening to the reports and speeches, concluding the Conference, the Prime Minister highly appreciated the very specific and complete reports of the Ministry of Construction and ministries, branches and localities on the current status of implementation results, limitations, shortcomings, causes and experiences in implementing policies on developing social housing for low-income people, workers and laborers in industrial parks and export processing zones; proposed solutions to promote the development of social housing for these subjects.

The conference also received many enthusiastic and practical comments and proposals from large real estate investment and trading enterprises to be able to immediately invest in building a large housing fund for workers and the poor.

The Prime Minister assigned the Government Office to coordinate with the Ministry of Construction and relevant ministries and branches to complete and submit to the Prime Minister for promulgation appropriate documents, including specific directions and solutions for amending and proposing amendments to current regulations, continuing to address the urgent housing needs of workers and low-income people.

The Prime Minister affirmed that over the past time, under the leadership of the Party and State, the direction and administration of the Government and the Prime Minister, together with the active participation of the entire political system, all levels and sectors, especially the role of localities and enterprises, hundreds of social housing and worker housing projects (7.8 million m2) have been completed, helping hundreds of thousands of low-income households and hundreds of thousands of workers improve their housing and have safe accommodation.

However, the process of implementing social housing policies has also revealed some shortcomings and limitations that need to be objectively and frankly recognized in order to focus on overcoming them as soon as possible.

Specifically, the mechanism and policies for developing social housing and housing for workers still have some contents that do not meet practical needs and have not been supplemented, amended, or completed in a timely manner, such as the subjects of participation and beneficiaries; investment and construction procedures, and purchase and sale management. The implementation of preferential policies for social housing must be carried out through many steps, so the time for implementing investment procedures is prolonged, the space for creativity and development of social housing is still narrow compared to the requirements; reasonable costs for developing social housing have not been calculated correctly and fully, preferential policies for investors of social housing projects and housing for workers are not attractive enough, close to reality, do not attract and encourage investors, etc.

The State budget is still in difficulty, has not been able to arrange preferential capital for loans to develop social housing; there is also no mechanism to mobilize public-private partnership resources effectively and systematically.

Many localities, especially leaders, have not paid attention to developing social housing, housing for workers and laborers in industrial parks; have not fully implemented planning and land allocation for social housing; have not included housing development targets, especially social housing and housing for workers in the 5-year and annual socio-economic development plans. In fact, with the same mechanism and policies, where leaders are truly interested and work with emotion, concrete results will be achieved.

Besides many businesses that are very interested and doing well, many manufacturing and business enterprises in industrial parks have not paid attention to housing for their workers and laborers...

The Head of Government also emphasized that we must acknowledge the role of the people in developing boarding houses, ensuring housing for workers in places with a large number of workers, but State management has not paid attention, there are still legal gaps in this field. In the coming time, it is necessary to promote this role of the people, on the basis of respecting market rules but with State intervention and regulation when necessary to ensure social security, progress and social and environmental justice.

Prime Minister Pham Minh Chinh chaired a conference to promote the development of social housing for workers and low-income earners. Deputy Prime Minister Le Van Thanh also chaired the conference - Photo: VGP/Nhat Bac

The Prime Minister clearly stated major viewpoints and orientations in developing social housing and housing for workers.

Firstly, developing social housing and workers' housing is one of the important contents of the socio-economic development policy. Developing social housing for low-income people and workers is the responsibility, obligation and ethics of the entire political system, of those in charge of state management, of enterprises and of the people, especially the heads of ministries, branches, and Chairmen of People's Committees of provinces and cities must pay attention to promoting and developing social housing in a practical, healthy and sustainable manner.

Second, the State encourages economic sectors to develop social housing, housing for workers, housing for low-income people, and disadvantaged groups according to market mechanisms, and at the same time has policies to support housing for low-income urban people and industrial park workers in order to contribute to political stability, ensure social security, "not sacrifice progress and social justice to pursue economic growth alone".

Third, developing social housing and workers' housing in localities is linked to the development of the housing real estate market, in accordance with the housing development program and plan in each stage of the locality and in compliance with the law on housing, planning and plans approved by competent authorities, ensuring synchronization of technical and social infrastructure, in accordance with local conditions.

Fourth, ministries, branches, and Chairmen of People's Committees of provinces and cities must have high determination, make great efforts, take drastic actions, focus on key points, complete each task, learn from experience while doing, gradually expand, not be perfectionist, not hasty to promote more comprehensive development of the social housing sector. This is the political task of local Party committees, authorities, agencies in the political system and the participation of businesses and people with high social responsibility.

Fifth, in parallel with the development of social housing, it is necessary to develop and perfect regulations on the development of boarding houses with appropriate standards and conditions on space, hygiene, and environment, which are increasingly civilized. Continue to perfect mechanisms and policies so that foreign investors can participate more actively and effectively in the development of social housing for workers and laborers.

Developing affordable social housing

Stating the goal of developing social housing that is affordable for workers, laborers, low-income earners, and people in difficult circumstances, the Prime Minister assigned the Ministry of Construction to preside over and develop an investment project to build at least 1 million social housing apartments for workers and low-income earners from now until 2030, to be completed this August.

To develop and implement this project, the Chairmen of the People's Committees of provinces and cities must report before August 15 on ongoing social housing projects, land locations that have been approved for social housing construction but have not yet been implemented, and develop implementation plans for the coming time with specific numbers of projects and apartments from now until 2030 to ensure local needs. The Government will study, synthesize, and assign specific plans.

"Right at this conference, businesses have registered to invest and build over 1.2 million apartments from now until 2030. We need to match words with actions so as not to let people lose confidence," the Prime Minister requested.

The conference was connected online from the Government headquarters to the People's Committees of a number of provinces and centrally-run cities - Photo: VGP/Nhat Bac

The Prime Minister also assigned the Ministry of Construction to preside over and coordinate with ministries, agencies and localities to remove obstacles, amend and perfect regulations for effective implementation, promote the development of social housing, housing for industrial park workers, housing for experts; study mechanisms and policies for the development of boarding houses in the above orientation; first of all, regulations under the authority of the Government, ministries, branches and localities.

In particular, research on the regulation of a unified management agency in localities on this issue. Research on the arrangement of land funds for social housing in commercial housing projects in a flexible, feasible, effective and appropriate manner. Minimize cumbersome, cumbersome and unnecessary administrative procedures, creating the most favorable conditions for businesses to have the motivation, emotions and inspiration to develop social housing.

Ministries, branches and localities focus on synchronously implementing tasks and solutions in Resolution No. 11/NQ-CP of the Government on the Socio-Economic Recovery and Development Program, including the content on social housing development.

The Prime Minister assigned the Ministry of Planning and Investment to preside over and coordinate with ministries and branches to synthesize, propose and allocate capital from the central budget according to the medium-term and annual plan through the Social Policy Bank and credit institutions designated by the State to implement social housing support policies. Direct, urge and guide localities to remove difficulties and obstacles in investment procedures, approve investment policies for social housing and worker housing projects to increase supply to the market.

The Ministry of Finance shall study and amend the tax law to conform to the housing law in cases of tax incentives for investors of social housing projects for rent only. Take the lead and coordinate with the Vietnam Bank for Social Policies to promptly submit to the Prime Minister for promulgation a decision on the plan to guarantee the issuance of bonds by the Vietnam Bank for Social Policies to lend to individuals and households to buy or rent-purchase social housing and housing for workers. Study the policy on the obligations of enterprises employing many workers in industrial parks responsible for supporting housing for workers and laborers working in those enterprises.

The Ministry of Natural Resources and Environment shall preside over and coordinate with the Ministry of Construction to guide localities in planning and land use plans, ensuring sufficient land funds for implementing social housing projects. Preside over and coordinate with the Ministry of Finance and the Ministry of Construction to study preferential policies on exemption of land use fees for social housing projects and workers' housing projects during the process of drafting the Land Law (amended).

The State Bank of Vietnam directs designated commercial banks to pay attention to creating conditions for enterprises investing in social housing and workers' housing that are eligible to receive preferential loans according to the provisions of Decree No. 31/2022/ND-CP; and to study lending for the development of dormitories for workers.

The Vietnam Bank for Social Policies continues to implement preferential loan programs for individuals and households to buy, lease-purchase social housing, housing for workers; build new or renovate, repair houses according to the social housing policy as prescribed in Decrees No. 100/2015/ND-CP and No. 49/2021/ND-CP and the support package for individual customers to borrow to buy, lease-purchase social housing, housing for workers in Resolution 11/NQ-CP.

The Ministry of Labor, War Invalids and Social Affairs organizes the implementation of housing support policies for workers in accordance with the provisions of law.

The Vietnam General Confederation of Labor presides over and closely coordinates with relevant ministries and branches in implementing Decision No. 655/QD-TTg dated May 12, 2017 and Decision No. 1729/QD-TTg dated November 4, 2020 of the Prime Minister on investment in building trade union institutions in industrial parks and export processing zones.

LocalitiesDevelop, adjust and supplement the local housing development program according to the provisions of the Housing Law, in accordance with the National Housing Development Strategy for the 2021-2030 period, with a vision to 2045 (approved by the Prime Minister in Decision No. 2161/QD-TTg dated December 22, 2021) as a basis for investment approval; include housing development targets, especially social housing and housing development targets for workers, in the 5-year and annual socio-economic development plans.

Strictly implement regulations on planning and land allocation for social housing development. When planning new urban areas and new industrial zones, it is necessary to include planning for social housing and workers' housing to ensure social infrastructure and technical infrastructure according to regulations.

Plan and arrange social housing projects and independent worker housing projects in suitable, convenient locations, with large scale, full technical and social infrastructure, especially in big cities such as Hanoi, Ho Chi Minh City, etc.

For social housing projects that have approved investment policies, it is necessary to urgently carry out procedures to select investors for implementation.

For provinces and cities with many industrial parks and a large concentration of workers such as Thai Nguyen, Bac Ninh, Bac Giang, Dong Nai, Binh Duong...: Based on the legal provisions on housing and Decree No. 35/2022/NQ-CP dated May 28, 2022 of the Government, reserve land funds and call on industrial park infrastructure investors, manufacturing enterprises and real estate enterprises to participate in investing and developing workers' housing and accommodation for workers to rent.

Urge investors of commercial housing projects and urban areas to invest in building social housing on 20% of the land fund of these projects according to the approved schedule.

Early establishment, approval and public announcement of the list of investment projects for the construction of independent social housing, which must select investors through bidding, so that interested businesses can study and propose participation.

There are specific mechanisms and solutions to shorten administrative procedures for project establishment, approval, land allocation, land lease, site clearance, construction investment procedures, etc. to support, encourage and attract businesses, especially large and reputable businesses in the real estate sector, to promptly deploy project investment and construction.