return icon Vietnamnet.vn

Target of 1 million social housing units difficult to reach

The goal of developing 1 million social housing units may not be feasible.

In early April, Hoa Binh Company organized an inauguration ceremony to introduce a sample social housing apartment in Hanoi. The company planned to kick off a project in Vinh Hung, Hanoi that month. However, to date, the project is stalled because of procedural problems.

Vuong Quoc Toan, president of Lan Hung Group, said in many cases, projects cannot be implemented because of problems in procedures, thus causing difficulties. However, social housing is a market segment with high demand, so it needs assistance for development.

Under current regulations, if businesses want to sell social housing, they have to send lists to local construction departments for examination and feedback.

“As far as I know, there are 1,800 dossiers on the table of management agencies awaiting examination. The question is when the dossiers will be approved,” he said.

“As a result, businesses still cannot sell social housing. It sometimes takes 2-3 years, thus making it difficult to recover capital and seriously affect business performance,” he said.

Le Hoang Chau, chair of the HCM City Real Estate Association (HOREA), said that administrative procedures are too complicated and require a long time for project implementation. In some cases, it takes up to 3-5 years to implement a social housing project.

The enterprises that develop social housing projects still cannot borrow preferential loans at an interest rate of 4.8 percent.

To date, 301 social housing projects in urban areas and housing projects in IZs have been completed, with 155,800 units, while another 401 projects are  under execution with 454,360 units. The results still cannot satisfy requirements, and to date, only 7.79 million sqm out of 12.5 million sqm have been completed.

In 2016-2020, no social housing project and housing for industrial zone (IZ) workers could access preferential loans. Businesses are worried that the goal that the Ministry of Construction (MOC) set recently that Vietnam develop 1 million social housing products in 2021-2030 will be challenging.

Lawyer Nguyen Vinh Quynh from Minh Bach Law Firm said that real estate firms have to spend five years to complete a social housing project, so the annual maximum profit of a social housing project is just 2 percent, a low level for a real estate project. 

Quynh said it is necessary to unify the regulations in legal documents about the types of land for social housing. Improvement is needed, such as capital, simplified administrative procedures, and increase in maximum profits.

Meanwhile, Chau believed that it is necessary to arrange capital from the State budget for every five years to implement the social housing policy.

Anh Phuong

MORE NEWS

FDI hoped to help realty market develop sustainably in long term

Vietnam’s real estate sector last year attracted an additional 1.85 billion USD in foreign direct investment (FDI), retaining its second place among industries drawing FDI with combined investment of 4.45 billion USD.

Party chief’s book on fight against corruption and negative phenomena released

A ceremony was held in Hanoi on February 2 to release the book by General Secretary of the Communist Party of Vietnam (CPV) Nguyen Phu Trong.

Make in Vietnam drives ICT firms into international markets

Global expansion has become a trend in domestic ICT enterprises in recent years.

Schools launch digital-related majors to meet students’ needs

In 2023, many universities have launched new subjects associated with the digital era to meet students’ needs.

Southeast region prepares for new FDI wave

The southeast region is preparing conditions in infrastructure, administrative procedures and human resources to welcome a new wave of foreign direct investment (FDI), as investors have flocked to the region from the beginning of this year.

VIETNAM NEWS HEADLINES FEBRUARY 2/2023

PM chairs monthly teleconference with localities

Experts call for stricter penalties as drink driving soars over Tet

The maximum punishment for car drivers with alcohol concentration levels exceeding 0.4mg per litre of breath, or 80mg in 100 ml of blood, is a fine of VND40 million (US$1,693) and a two-year suspension of their driving licences.

Over 32% of apparel firms remain closed in Hanoi

Nearly a third of textile and garment firms have yet to reopen in Hanoi although the Lunar New Year holiday has ended.

Domestic tourism hits five-year high

Domestic tourism numbers hit 13 million in January, the highest in the last five years, according to the Vietnam National Administration of Tourism.

VIETNAM BUSINESS NEWS FEBRUARY 2/2023

Businesses exporting medicinal herbs to China required to register

Cashless payments on the rise: convenience and security for expats in Vietnam

As digital payment methods surge in popularity, expats in Vietnam are not alone in embracing the change to cashless transactions.

My Dinh Stadium needs money for more upgrading

Having been upgraded with a package worth VND408 billion, My Dinh Stadium is still in poor condition.

Vietnam needs more submarine cables to ensure internet services

Vietnam will need at least two or three more submarine cables to ensure proper internet services for the country's development in the next five years, according to Vu The Binh, Secretary-General of the Vietnam Internet Association.

Government convenes January meeting

The Government convened its first regular monthly meeting for 2023 in Ha Noi on Thursday under the chair of Prime Minister Pham Minh Chinh.

Scammers steal information, money on first days of Year of the Cat

The first days of the New Year are the time for scammers to increase their activities. The most common tricks are stealing information and money from victims’ accounts.
back_to_top