Proposal to discipline local leaders 'inactive' on social housing

Social housing still has development bottlenecks

According to a report from the Ministry of Construction , after 3 years of implementing the investment project, at least one million social houses, up to now the country has had 692 projects implemented with more than 633,000 houses. Of which, 146 projects were completed with more than 103,000 houses.

In the first 7 months of this year alone, nearly 37,000 units were completed, equal to 80% of last year's results and 7 times higher than in 2022. Currently, 402 projects have been approved in principle with more than 400,000 units, equivalent to nearly 60% of the target set for 2030.

Many localities such as Hai Phong city, Bac Ninh province, Bac Giang , Nghe An have actively participated, achieving a high rate compared to the set target. However, some localities have not really paid due attention, leading to no projects being started or having projects started but the completion rate is still low.

According to experts from the Vietnam Real Estate Market Research and Evaluation Institute (VARS IRE), the social housing market is falling into the paradox of "both shortage and unsaleability". Supply is not enough to meet the needs of low-income people, but many projects for sale are difficult to sell due to three major bottlenecks.

Many localities are slow to develop social housing.

According to VARS IRE, the first bottleneck lies in land funds. Many localities allocate land for social housing in areas far from the center, with unsynchronized infrastructure, few schools and hospitals, so even with low prices, the project is difficult to attract buyers. The implementation of the 20% land fund obligation in commercial projects and urban areas is still loose, causing the market to lack real supply.

Second, the demand assessment is not accurate. Statistics from VARS IRE show that millions of urban workers still do not have stable housing, but some social housing projects are unsold when offered for sale. The reason is that the approval procedures are complicated, the regulations are strict, while the project location is not suitable.

In addition, the market is also plagued by speculation and illegal transfers. Some buyers do not buy to live in but resell, distorting the market and depriving those with real needs of opportunities.

Propose many solutions

VARS IRE believes that the management agency needs to seriously consider, evaluate and apply disciplinary sanctions to leaders of some localities that have not properly fulfilled their responsibilities in developing social housing in the past. Review commercial projects of 2 hectares or more to clarify the obligation of 20% land fund for social housing; should assign an independent research unit to survey the demand to avoid supply-demand imbalance, and adjust the management mechanism flexibly, both transparently reviewing and helping investors approach the right people in need.

Agreeing with this assessment, the Ho Chi Minh City Real Estate Association also recommended optimizing administrative procedures in the implementation and sale of social housing, and changing the development mindset. Social housing cannot stop at the criteria of low price but must take into account location, quality of life and amenities. Lessons from thousands of resettlement apartments abandoned for many years are the clearest proof of this waste.

To complete the set goals, recently, the dispatch of the Minister of Construction issued a series of specific instructions, requesting the Chairmen of the People's Committees of provinces and cities to focus on urgently implementing key solutions.

The Ministry of Construction emphasized the need for localities to focus on leadership and direction more strongly, and at the same time immediately add the target of completing social housing according to Decision 444 to the system of socio -economic development indicators, along with prioritizing resources for implementation. The establishment of a provincial Steering Committee is also considered an urgent task to directly inspect, urge and remove obstacles.

For ongoing projects, especially those registered for completion this year, there needs to be close review and supervision to speed up progress. At the same time, new projects, including the implementation of social housing on the 20% land fund of commercial housing projects, need to be promoted to start construction early this year.

Special attention is also paid to the management and effective exploitation of land funds, requiring localities to promptly complete investment procedures for planned land areas, and at the same time review, update and supplement land use planning and plans to ensure adequate land allocation according to targets.