A working group from the Ministry of Construction, led by Deputy Minister Nguyen Van Sinh, concluded the supervisory visit to five key social housing projects in Ho Chi Minh City on October 7, addressing ongoing challenges and pressing for accelerated development.
Developers seek government intervention on obstacles
The delegation's inspections revealed several critical bottlenecks. At the housing project for HCMC Police soldiers in Dong Hung Thuan Ward which is a 19-story, 776-apartment block currently under construction by Phu Cuong Investment Joint Stock Company, the developer formally requested exemption from land use fees. The company also sought adjustments to the project's investment approval decision, covering the project name, objectives, scale, and total investment.
Similarly, issues were raised during the visit to the K-Home New City social housing project in Binh Duong Ward, a Kim Oanh Group development featuring 1,376 townhouses and 1,654 apartments. Despite the project nearing completion, the developer reported that bank loans have only reached VND200 billion (US$7,571,479) at commercial rates.
Furthermore, while the company plans to hand over units between this month and the first quarter of next year, customers have yet to secure social housing purchase loans. Kim Oanh Group appealed to authorities to urgently facilitate customer access to home loans, enabling them to finalize payments to the investor.
HCMC commits to ambitious targets and planning adjustments
In a subsequent meeting with the ministry delegation, Head Pham Dang Ho of the Urban Development Division under the HCMC Department of Construction, provided an update on the city's ambitious plans. HCMC aims to develop 199,400 social housing units by 2030. This target includes completing 13,040 units by 2025 and an additional 181,257 units between 2026 and 2030.
To meet these goals, the city has streamlined administrative procedures related to construction and business activities. Vice Chairman of the HCMC People's Committee Bui Xuan Cuong confirmed that the city's previous master plan had allocated 1,400 hectares for social housing. Following the recent merger with neighboring areas, HCMC, along with Binh Duong and Ba Ria-Vung Tau, has secured additional land for social housing development. Vice Chairman Bui Xuan Cuong indicated that the city will clarify legal land use rights and adjust land use plans and zoning to significantly increase the number of projects in the near future.
Closing the meeting, Deputy Minister Nguyen Van Sinh directed HCMC to intensify its efforts. He called on the city to strengthen inspection work and press investors to expedite project progress, emphasizing the need for prompt resolution of any difficulties.
Furthermore, Deputy Minister Nguyen Van Sinh urged HCMC to conduct a comprehensive review and adjustment of its social housing development programs, ensuring that housing locations align fully with the actual needs of residents and that investment policies for new projects are swiftly approved.
With numerous social housing projects nearing readiness for use, the Deputy Minister stressed that relevant agencies must ensure the purchase and sale process remains public, transparent, and strictly adheres to eligibility criteria. Finally, he emphasized the importance of controlling social housing prices to the general market level, guaranteeing that all genuinely in-need citizens can access affordable housing.
