Is there an official letter guiding the support of preferential loans for social housing development in the credit program of about VND 120,000 billion of the Ministry of Construction in Vietnam?

What criteria must individuals meet when taking preferential loans for social housing development in the credit program of about VND 120,000 billion of the Ministry of Construction in Vietnam?

In Subsection 3.1, Section 3 of Official Letter 1551/BXD-QLN in 2023, conditions for individuals to receive preferential loans for social housing development in the credit program of about VND 120,000 billion of the Ministry of Construction are as follows:

In addition to ensuring the conditions and criteria according to the provisions of the law on credit guided by the State Bank, the beneficiaries of the credit program of VND 120,000 billion must also meet the following conditions and criteria:

3.1. For the subject is an individual

- For buyers of social housing, housing for workers (social housing in industrial zones) must have a social housing purchase contract with the investor in accordance with the housing law.

- For subjects eligible for resettlement in an apartment building renovation or rebuilding project, they must have a contract to buy, house and construct resettlement according to the provisions of the law on housing. 

3.2. For the subject is the Project Investor

Investors of social housing, worker housing, apartment renovation and reconstruction projects must be included in the list of social housing and worker housing projects (social housing in industrial parks), renovation and reconstruction of apartment buildings announced by the provincial People's Committee and must ensure the following conditions:

- For projects on construction of social housing and housing for workers: the investment policy has been decided by a competent authority in accordance with the law on investment and the law on housing; has had a decision on land allocation or has obtained the right to use land in accordance with the law on land and has completed the compensation and site clearance; have been granted construction permits or are exempt from construction permits in accordance with the construction law;

- For projects on renovation and reconstruction of apartments; has approved the investment policy of the competent state agency according to the provisions of law; other information in accordance with relevant laws.

Thus, individuals taking preferential loans for social housing development in the credit program of about VND 120,000 billion of the Ministry of Construction in Vietnam need to meet the following criteria:

- Must have a social housing purchase contract with the investor in accordance with the law on housing, for buyers of social housing, housing for workers (social housing in industrial parks).

- There must be a contract to buy, house, and construction work to be relocated according to the housing law, for subjects to be resettled in an apartment building renovation or reconstruction project.

Who is eligible for preferential loans for social housing development by the Ministry of Construction in the credit program of about VND 120,000 billion in Vietnam?

In Subsection 2.1, Section 2 of Official Letter 1551/BXD-QLN in 2023, individuals who are eligible for preferential loans for social housing development in the credit program of about VND 120,000 billion of the Ministry of Construction include:

2.1. For individual subjects

- In case of buying social housing or worker housing (social housing in industrial zones) according to the provisions of Clause 1, Article 50 of the Law on Housing 2014 , the subjects eligible for loan are those specified in Clause 1, Article 50 of the Law on Housing; Clauses 1, 4, 5, 6, 7, 8 and 10, Article 49 of the Law on Housing:

+ People with meritorious services to the revolution according to the provisions of the law on preferential treatment for people with meritorious services to the revolution;

+ Low-income people, poor and near-poor households in urban areas;

+ Employees are working at enterprises inside and outside the industrial park;

+ Officers, professional non-commissioned officers, professional and technical non-commissioned officers, professional soldiers, workers in agencies and units of the People's Police and the People's Army;

+ Cadres, civil servants and public employees in accordance with the law on cadres, civil servants and public employees.

+ Subjects who have returned official residences as prescribed in Clause 5, Article 81 of the Law on Housing ;

+ Households and individuals subject to land recovery and having to clear or demolish their houses in accordance with law but have not yet been compensated by the State with houses or residential land.

- In case of buying houses in apartment building renovation and rebuilding projects, the provisions of Clause 2, Article 26 of Decree No. 69/2021/ND-CP dated July 15, 2021 of the Government on the creating and rebuilding apartment buildings, specifically: apartment house owners who are arranged to be resettled and have to pay more money for the difference in area may get loans from credit institutions or financial institutions that are operating action in Vietnam.

2.2. Investors of social housing projects, workers' housing projects (social housing in industrial parks), renovation and reconstruction projects of apartment buildings in accordance with the law on housing.

What are rules for the implementation of incentive policies on social housing in Vietnam?

In Clause 1, Article 52 of the Law on Housing 2014, rules for the implementation of incentive policies on social housing are as follows:

1. The policy on social housing support must follow the rules below:

a) There is a combination between the State, communities, relatives and beneficiaries of the policies during the implementation of the policy;

b) The policy must be publicized and transparent, under close inspection of the competent agency and communities;

c) The policy only applies to entities meeting all requirements as prescribed;

d) In case an entity benefits from more than one policy, he/she shall only benefit from the best policy; in case there are many entities meeting the same requirements, the disabled or women shall be given priority;

dd) In case a household has more than one entity benefiting from the policies, there is only one policy applying to that household.

2. The People’s Committee of the province shall implement and inspect the policies on social housing in the province.

Thus, the implementation of policies on social housing support in Vietnam must meet the following principles:

- There is a combination between the State, communities, relatives and beneficiaries of the policies during the implementation of the policy;

- The policy must be publicized and transparent, under close inspection of the competent agency and communities;

- The policy only applies to entities meeting all requirements as prescribed;

- In case an entity benefits from more than one policy, he/she shall only benefit from the best policy; in case there are many entities meeting the same requirements, the disabled or women shall be given priority;

- In case a household has more than one entity benefiting from the policies, there is only one policy applying to that household.

Best regards!