Instructions for determining the list of projects, subjects, conditions, and criteria for preferential loans for social housing development in Vietnam

Instructions for determining the list of projects, subjects, conditions, and criteria for preferential loans for social housing development in Vietnam (Internet image) 

Regarding this matter, LawNet would like to answer as follows: 

On April 23, 2024, the Ministry of Construction issued Official Dispatch 1699/BXD-QLN guiding the determination of the list of projects, subjects, conditions, and criteria for preferential loans for social housing development, workers' housing, renovation, and reconstruction of apartments.

Instructions for determining the list of projects, subjects, conditions, and criteria for preferential loans for social housing development in Vietnam

The Ministry of Construction of Vietnam provides the following guidance on determining the list of projects, subjects, conditions, and criteria for preferential loans for social housing development, workers' housing, renovation, and reconstruction of apartments:

(1) Regarding subjects

- For individuals:

+ In the case of purchasing social housing, workers' housing (social housing in industrial zones), as regulated in Clause 1, Article 50 of the Law on Housing 2014, the eligible borrowers are individuals specified in Clauses 1, 4, 5, 6, 7, 8, and 10 of Article 49 of the Law on Housing 2014

(i) People with meritorious services to the Resolution prescribed in law on preferential treatment for people with meritorious services to the Resolution;

(ii) Individuals living in low income, poverty, or near poverty in urban areas;

(iii)  Employees working in enterprises inside or outside the industrial zones;

(iv) Commissioned officers, professional and technical non-commissioned officers, standing army, and workers in the agencies of People’s Police and People’s Army;

(v) Officials and public employees prescribed in law on officials and public employees;

(vi) Entities who have returned official residence as prescribed in Clause 5 Article 81 of the Law on Housing 2014;

(vii) Households or individuals subject to land withdrawal and land clearance as prescribed without any compensation in the form of housing or residential land paid by the State.

+ In the case of purchasing houses in renovation and reconstruction projects for apartments, if apartment owners arranged for relocation must pay for the difference in area, they may take loans from credit institutions and financial institutions currently active in Vietnam, as specified in Clause 2, Article 26 of Decree 69/2021/ND-CP.

- For project developers of social housing, workers' housing (social housing in industrial zones), renovation, and reconstruction of apartments as regulated by housing legislation.

(2) Regarding conditions and criteria

In addition to meeting the conditions and criteria prescribed by credit laws guided by the State Bank of Vietnam, the eligible borrowers under the 120 trillion VND credit program must also meet the following conditions and criteria:

- For individuals:

+ For individuals purchasing social housing, workers' housing (social housing in industrial zones), they must have a housing purchase contract with the project developer as regulated by housing laws.

+ For individuals arranged for resettlement in renovation and reconstruction projects for apartments, they must have a contract to purchase housing, construction works for resettlement as regulated by housing laws.

- For project developers:

Project developers of social housing, workers' housing, renovation, and reconstruction of apartments must be included in the list of social housing projects, workers' housing (social housing in industrial zones), renovation, and reconstruction of apartments announced by the provincial People's Committee and must meet the following conditions:

+ For social housing projects, workers' housing: They must have been granted the authority to decide on investment policies according to investment laws and housing laws; They must have been selected as project developers according to housing laws and have been granted land allocation or land use rights according to land laws.

+ For renovation and reconstruction projects for apartments: They must have obtained approval for investment policies from competent state agencies according to laws and have been selected as project developers according to housing laws.

(3) Regarding the determination of the list of projects

Based on Resolution 33/NQ-CP dated March 11, 2023, the Ministry of Construction delegates the provincial People's Committees to be responsible for reviewing, inspecting the legal procedures, and preparing the lists of projects for social housing development, workers' housing (social housing in industrial zones), renovation, and reconstruction of condominiums to be publicly announced on the electronic portal of the provincial People's Committees. The published content and information should include all relevant legal procedures as specified in Section 3.2 of this document (with the attached announcement appendix from the provincial People's Committees), for banks to apply for loans under the 120 trillion VND credit program, and to send documents to the State Bank of Vietnam and the Ministry of Construction for monitoring and consolidation.

During the implementation process, if any difficulties or obstacles arise in relation to the determination of the list of projects, subjects, conditions, and criteria for beneficiaries of the program, it is recommended that relevant localities, organizations, and individuals promptly report to the Ministry of Construction for guidance and implementation according to their jurisdiction.

This document replaces Document No. 1551/BXD-QLN, dated April 20, 2023, issued by the Ministry of Construction regarding the guidelines for determining the list of projects, subjects, conditions, and criteria for preferential loans for social housing development, workers' housing, renovation, and reconstruction of apartments.

More details can be found in Official Dispatch 1699/BXD-QLN dated April 23, 2024.

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