This housing development fund would focus on social housing, rental options for workers, and housing opportunities for individuals under 35, whether for rent or purchase.
At the meeting, Deputy Minister of Finance Ho Sy Hung stated that the Ministry had held technical-level discussions with the Ministry of Construction to identify ongoing challenges in social housing development. Based on these discussions, the Ministry of Finance submitted a proposal to Government leaders recommending the establishment of a national housing development fund.
Rather than creating a new financial institution, the Ministry proposed using the existing financial institutions to provide loans for social housing. It also recommended that both central and local governments prioritize resources and support mechanisms to enable these institutions to expand their social housing lending activities.
The Ministry of Finance has presented a plan on financial mechanisms to support the development of social housing and orientations for the establishment of a national housing development fund. This plan is based on a comprehensive review of the legal system and financial institutions at the central and local levels.
Speaking at the meeting, Deputy Prime Minister Ho Duc Phoc emphasized that the creation of a housing development fund aimed at promoting social housing, as well as housing for workers and individuals under 35 seeking to rent or purchase homes, is supported by political, legal, and practical foundations. Consequently, the national housing development fund is a non-budgetary state fund and established by the State.
It is expected that the fund's resources will be mobilized from the state budget, voluntary contributions from domestic and foreign investors, revenue from the 20 percent land fund to build social housing in commercial housing projects according to the present regulations.
According to Deputy Prime Minister Ho Duc Phoc, the primary purpose of the national housing development fund is to finance the construction of social housing, rental housing for workers, and housing for young people under 35 years old.
The national housing development fund operates at two tiers; a central level under the purview of the Ministry of Construction and a local level administered by provincial People's Committees.
The Deputy Prime Minister tasked the Ministry of Construction with incorporating the feedback gathered during the meeting to finalize the project aimed at creating the national housing development fund, along with the draft decree, for submission to the relevant authority for review and decision-making.
