The information about the Government’s conference to promote social housing development was released to be enthusiastically received by people as this is an opportunity to look back at the problems in order to find solutions to remove them, develop housing, and meet people's desire for a place to live.
In August 2024, the Le Thanh - Tan Kien social housing project, developed by Le Thanh Construction Trading Company, celebrated its groundbreaking ceremony. During the event, the investor expressed enthusiasm, stating that only a few straightforward technical steps remained before construction could commence, and that the project would be finished within a few months. This project is notable as it is the sole social housing project in Ho Chi Minh City last year.
However, to date, the project has yet to achieve significant progress.
Director Le Huu Nghia of Le Thanh Company expressed his frustration regarding the project, which has been pending approval for the detailed planning at a scale of 1/500, as well as the issuance of the construction permit. These legal processes have been prolonged since 2018, primarily due to the necessity of consultations with various relevant departments and agencies. According to him, the Ministry of Construction should have a decision or guide localities to allow parallel procedures to be carried out so that businesses can reduce waiting time.
According to the Government's project, at least 1 million social housing apartments will be built across the country from 2021 to 2030. Ho Chi Minh City has set a target of building 69,700-93,000 apartments during this period.
However, to date, the city has only implemented 10 projects, of which 6 projects have been completed with a total of nearly 6,000 apartments.
Ho Chi Minh City is currently developing four projects, including three social housing initiatives and one worker accommodation project, according to Director Nguyen Hoang Quan of the city's Department of Construction. Additionally, six other projects, totaling 6,054 apartments, have yet to receive investment approval.
According to the Ministry of Construction, by the end of 2024, the country completed 28 social housing projects, providing 20,284 units for low-income earners and industrial park workers. Additionally, 23 projects with 25,399 units have been licensed and started construction, and 113 projects with 142,450 units have been approved for investment.
These figures have not yet met the year's target and are far from the target of the 1 million social housing apartment project for the 2021-2030 period. In addition to the slow pace of implementation, the project is also hampered by insufficient financial resources.
The Government's VND120,000 billion credit package has been the primary support for this market segment in recent years. Currently, commercial banks have committed to providing loans of about VND4,000 billion, with new loan sales reaching VND2,162 billion for investors in 17 projects and VND198 billion for home buyers in 15 projects.
The development of social housing is evident to be facing many challenges.
Economist Nguyen Minh Phong commented that in 2024, the market had high expectations for improving the supply of social housing, but the actual result was only 21,000 units while the target was 130,000 units. Therefore, to complete the target of more than 100,000 social housing units in 2025, more drastic measures are needed.
Associate Professor Dinh Trong Thinh, a lecturer at the Academy of Finance, stated that reaching the goal of 1 million social housing units presents a significant challenge. While numerous issues concerning mechanisms and policies have been addressed, obstacles persist, particularly regarding funding sources and administrative processes.
Deputy Minister of Construction Nguyen Viet Hung disclosed that the difficulties in implementing social housing projects have been identified, analyzed and will be resolved by state management agencies. In addition to completing over 100,000 social housing units in 2025, ministries and localities need to implement more fundamental and synchronous solutions to gradually realize the goal of building 1 million social housing condos in the 2021-2030 period.
In the coming time, the Ministry of Construction will coordinate with ministries and localities to review and complete institutions and laws related to the real estate market to ensure feasibility and simplify administrative procedures.
The Ministry and relevant agencies will work with local authorities to enhance planning, secure sufficient land resources, provide funding for site clearance, and facilitate access to capital sources to support the development of social housing.
The Ministry of Construction recommended that the Ministry of Natural Resources and Environment assume a leading role in guiding local authorities in the development of comprehensive land use plans, with a specific focus on securing adequate land resources for the implementation of social housing projects and the provision of suitable accommodation for workers in industrial zones.
Furthermore, the Ministry of Construction proposed that the Ministry of Finance conduct a thorough investigation into the feasibility of establishing a dedicated social housing development fund or exploring alternative financial models to ensure the long-term sustainability of social housing development initiatives.
ACB offers home loans to young people with annual interest rates from 5.5 percent
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