Vietnam: Guidance on the implementation of social housing obligations for investors in commercial housing and metro area construction investment projects with a land use scale of less than 10 hectares?
- Shall investors stated in investment decisions of competent authorities reserve appropriate land funds for developing social housing in Vietnam?
- Guidelines for the implementation of social housing obligations for investors of urban development projects with a land use scale of less than 10 hectares?
- Determine the amount to be paid in case the project investor is approved to perform social housing obligations in the form of cash payment?
Shall investors stated in investment decisions of competent authorities reserve appropriate land funds for developing social housing in Vietnam?
According to Clause 5, Article 72 of the 2009 Law on Urban Planning of Vietnam, the management and development of new urban centers and new urban areas are as follows:
Management of development of new urban centers and urban quarters
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5. When implementing projects to construct new urban quarters, residential quarters and housing quarters, People's Committees at all levels and investors stated in investment decisions of competent authorities shall reserve appropriate land funds for developing social housing in Vietnam in accordance with law.
At the same time, based on Clause 6, Article 4 of Decree No. 11/2013/ND-CP stipulating land reserved for urban development as follows:
Land reserved for urban development
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6. Land for construction of public housing and resettlement housing must be identified as soon as formulating and approving the subdivision planning scheme and detailed planning.
Thus, according to regulations, when implementing projects to construct new urban quarters, residential quarters and housing quarters, People's Committees at all levels and investors stated in investment decisions of competent authorities shall reserve appropriate land funds for developing social housing in accordance with law.
Vietnam: Guidance on the implementation of social housing obligations for investors in commercial housing and metro area construction investment projects with a land use scale of less than 10 hectares? (Image from the Internet)
Guidelines for the implementation of social housing obligations for investors of urban development projects with a land use scale of less than 10 hectares?
According to the provisions at point a, clause 2, Article 6 of Decree No. 188/2013/ND-CP on planning and allocation of land for social housing development projects:
Planning and allocation of land for social housing development projects
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2. Allocation of land for social housing in commercial housing projects a new urban area projects:
a) Investors in commercial housing or new urban areas, regardless of land area (including BT and BOT projects) in urban areas class 3 or above, must put aside 20% of the total area of land in the project or the total area of floor plan that is approved by competent authorities and, where infrastructure is available for building social housing.
Investors in commercial housing and new urban areas shall directly make investments in social housing on such 20% land area (unless it is withdrawn by the State to build social housing from government budget and the investor does not wish to invest in social housing, such land shall be transferred to the People’s Committee of the province where the project is situated).
At the same time, according to Clause 1, Article 5 of Decree No. 100/2015/ND-CP (amended by Clause 22, Article 1 of Decree No. 49/2021/ND-CP) stipulating as follows:
Land area for social housing development with regard to commercial housing and metro area construction investment projects
1. Investors in commercial housing and metro area construction investment projects, regardless of land area (including construction projects under BT contracts and BOT contracts) in class 3 urban areas or above must use at least 20% of the land area of the detailed planning scheme or total area for construction of infrastructure approved by a competent authority to build social houses.
Investors in commercial housing and metro area construction investment projects shall directly make investment in construction of social houses of the 20% land area (unless this area is withdrawn by the State to build social houses funded by state budget and the investors do not wish to participate).
Official Dispatch No. 4437/BXD-QLN in 2022 guides as follows:
- Pursuant to Clause 2, Article 16 of the 2014 Law on Housing of Vietnam
- Pursuant to Clause 4, Article 1 of Decree No. 49/2021/ND-CP
Based on the above regulations, the Ministry of Construction of Vietnam proposed the People's Committee of Vinh Phuc province to compare the above regulations with the time of investment approval/approval of investment policy/decision on project investment policy, recognition of investors in commercial housing development projects, urban development investment projects with a land use scale of less than 10 hectares within the locality (during the period of Decree No. 188/2013/ND-CP and Decree No. 100/2015/ND-CP takes effect) to require investors of these projects to fulfill their social housing obligations in accordance with law.
Determine the amount to be paid in case the project investor is approved to perform social housing obligations in the form of cash payment?
According to the provisions at Point b, Clause 2, Article 6 of Decree No. 188/2013/ND-CP stipulating as follows:
Planning and allocation of land for social housing development projects
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2. Allocation of land for social housing in commercial housing projects a new urban area projects:
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b) If the project for commercial housing or new urban area uses fewer than 10 hectares of land, instead of putting aside 20% of land to build social housing as prescribed in Point a Clause 2 of this Article, the investor may transfer a number of houses, the value of which is equivalent to the value of 20% of land according to the land price bracket imposed by the People’s Committee of the province at that time, to the State as social housing, or pay an amount of money equivalent to the value of 20% of land according to the land price bracket imposed by the People’s Committee of the province in order to build up the local social housing fund.
At the same time, Clause 2, Article 5 of Decree No. 100/2015/ND-CP (a phrase replaced by Clause 22, Article 1 of Decree No. 49/2021/ND-CP) stipulates as follows:
Land area for social housing development with regard to commercial housing and metro area construction investment projects
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2. If a commercial housing project or urban development project uses less than 10 hectares of land, the investor may decide between using 20% of the land area for construction of social houses as set out in Clause 1 of this Article, or convert a quantity of houses equivalent to 20% of the land area (according to land price) into social houses, or pay an amount of money equivalent to 20% of the land area (according to the land price).
In addition, based on the provisions of Clause 3, Article 2 of Decree No. 49/2021/ND-CP stipulating as follows:
Implementation clause
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3. Ministers, heads of ministerial-level agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces and central-affiliated cities and relevant regulatory bodies, organizations and individuals shall implement this Decree.
In Official Dispatch No. 4437/BXD-QLN in 2022, the Ministry of Construction of Vietnam guides as follows:
In case the project investor is approved to perform social housing obligations in the form of cash payment, the determination of payable amount shall comply with current land law provisions. In case there are still problems, the People's Committee of Vinh Phuc province is requested to ask the Ministry of Natural Resources and Environment for specific guidance according to its competence.
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