What is supplement of principles for selection of investors in social housing construction projects according to the bidding method in Vietnam?

What is supplement of principles for selection of investors in social housing construction projects according to the bidding method in Vietnam?

On April 28, 2023, the Minister of Construction issued Circular 03/2023/TT-BXD amending Circular 09/2021/TT-BXD on social housing development and management.

In Article 3 of Circular 09/2021/TT-BXD, there are regulations on principles for selection of investors in social housing construction projects according to the bidding method as follows:

1. Investment projects on social housing construction subject to the mandatory requirements for selection of investors according to the bidding method must satisfy the conditions specified in Clauses 2, 3, 5 and 6 of Article 11 in the Government’s Decree No. 25/2020/ND-CP dated February 28, 2020, elaborating on the implementation of a number of articles of the Bidding Law on investor selection (amended and supplemented in Clause 4 of Article 108 in the Government’s Decree No. 31/2021/ND -CP dated March 26, 2021, elaborating and providing guidance on the implementation of the Investment Law) and the followings:

a) Do not use capital prescribed in clause 1 of Article 53 in the Housing Law for investment in social housing construction projects;

b) Do not fall into the cases specified in point c and d of clause 2 of Article 57 in the Housing Law (except the case stipulated in clause 3 of Article 8 herein);

c) Have received Decisions on approval of policies for investment in projects in accordance with laws on investment;

d) Have detailed construction plans already approved by competent state authorities.

2. The detailed processes and procedures for selection of investors in social housing investment and construction projects according to the bidding method are subject to the bidding law on selection of investors executing investment projects using land.

3. Investors winning bids become investors/owners of social housing investment and construction projects.

In Article 1 of Circular 03/2023/TT-BXD, there are amendments and supplements to the principles for selection of investors in social housing construction projects according to the bidding method as follows:

d. Have a detailed construction planning which is already approved by a competent authority in accordance with law.

In case there is no approved detailed construction planning, as for an area which requires the zoning planning, an approved zoning planning is required, as for an area which requires no zoning planning, an approved general planning is required. Furthermore, the land area where the housing project is expected to be built must have the detailed planning approved by the competent authority based on the National Technical Regulations on construction planning, technical and social infrastructure conditions of the region to stipulate the planning land use indicators and related requirements on the connection of social and technical infrastructure.

Thus, the selection of the investor of a social housing construction investment project in the form of bidding must satisfy the following principles in Vietnam:

- Do not use the capital sources specified in Clause 1, Article 53 of the Law on Housing to invest in the construction of works;

- Not falling into the cases specified at Points c and d, Clause 2, Article 57 of the Law on Housing;

- There has been a decision approving the investment policy of the project in accordance with the law on investment;

- Having a detailed construction planning approved by a competent authority;

In case, there is no approved detailed construction planning, it must be in the area where the zoning planning has been approved, for the area where the zoning planning is required, or for which the general planning has been approved with areas that do not require zoning planning.

At the same time, the land area expected to implement the housing project must have the detailed planning approved by the competent authority based on the National Technical Regulations on construction planning, technical and social infrastructure conditions. Associations of the region to stipulate planned land use norms and related requirements on connection of social and technical infrastructure.

What types of land are built for social housing in Vietnam?

In Article 56 of the Law on Housing 2014, there are regulations on land for construction of social housing as follows:

1. When approving an planning for urban area construction, a planning for rural area construction, or a planning for industrial zone and/or training research zone construction, the People’s Committee in charge of planning approval shall determine the area of pieces of land used for social housing construction.

2. The area of land and information about location used for social housing development shall be announced on the website of the People’s Committee of the province and the housing authority of province.

3. Land used for social housing development includes:

a) Land allocated by the State for housing construction for lease, lease purchase and/or sale;

b) Land leased by the State for housing construction for lease;

c) The area of residential land in the projects for commercial housing construction which is reserved for social housing as prescribed in Clause 2 Article 16 of this Law;

d) Lawful residential land of organizations, households and/or individuals used for social housing construction.

Thus, land for construction of social housing in Vietnam will include:

- Land allocated by the State for the construction of houses for lease, lease purchase and sale;

- Land leased by the State to build houses for lease;

- The residential land area in the commercial housing construction investment project that the investor must set aside for the construction of social housing as prescribed in Clause 2, Article 16 of the Law on Housing 2014.

- Lawful residential land of organizations, households and individuals used for construction of social houses.

What are requirements regarding types of housing and housing area standards of social housing in Vietnam?

In Article 55 of the Law on Housing 2014, there are regulations on types of houses and standards of social housing area as follows:

1. They are apartment buildings or separate houses in conformity with the specific planning for construction approved by the competent agency.

2. With respect to separate houses, they must be designed and built according to standards of construction and housing area standards of social housing.

3. With respect to apartment buildings, they must be designed and built in self-contained style, and in conformity with standards of construction and housing area standards of social housing.

Thus, social housing must meet the following conditions and standards in Vietnam:

- Conform to the detailed construction planning approved by the competent state agency.

- For social housing that is a separate house: it must be designed and built according to construction standards, regulations, and area standards of social housing.

- For housing being an apartment building: it must be designed and built in a self-contained fashion, ensuring standards, construction regulations, and area standards for social housing.

Best Regards!