Striving to 2030: To complete more than 1 million units of social housing for low-income citizen in Vietnam

Striving to 2030: To complete more than 1 million units of social housing for low-income citizen in Vietnam (Internet image)

April 3, 2023, the Prime Minister of Vietnam issued Decision 338/QD-TTg approving the project "Investing in the construction of at least 01 million social housing apartments for low-income people and industrial park workers in the 2021-2030 period".

The Government of Vietnam has set social development goals for low-income people and industrial park workers as follows:

Striving to 2030: To complete more than 1 million units of social housing for low-income citizen in Vietnam

Specifically, the specific goal of the Project in Decision 338/QD-TTg is to strive so that by 2030, the total number of apartments in localities will be about 1,062,200. In which, in the period of 2021–2025, about 428,000 apartments will be completed; in the period of 2025–2030, about 634,200 apartments will be completed.

In addition to specific goals, the Government also sets general goals in social development for low-income people and industrial park workers as follows:

- Development of social housing, housing for workers with prices suitable to the affordability of middle- and low-income households in urban areas and of workers and workers in industrial parks and export processing zones.

- The State encourages all economic sectors to develop housing to create conditions for people to have accommodation according to market mechanisms and meet all people's needs; at the same time, it has policies to support housing for social policy beneficiaries, low-income people, and the poor who face housing difficulties in order to contribute to political stability, ensure social security, and develop urban and rural areas in the direction of civilization and modernity.

Continuing to improve institutions and laws on social housing for low-income citizen in Vietnam

This is one of the solutions to meet the goals of the Project in the period of 2021–2030 for the whole country to complete the investment of at least 01 million social housing units.

Specifically, some of the key contents in this solution are as follows:

(1) Regarding the land fund for social housing, housing for workers

- Amending and supplementing regulations on land reserved for social housing development in the following directions:

+ When formulating and approving urban planning, rural construction planning, industrial park development planning, research, and training zones, the People's Committee competent to approve the planning must plan and clearly identify the land area reserved for the construction of social housing within the province and district level;...

+ Considering the social housing development target as a 5-year, annual socio-economic development target of the locality.

- Supplementing regulations on the planning and arrangement of land fund for the development of worker accommodation in the direction that when making and approving the planning of industrial parks, the land fund must be arranged in the commercial and service land area of the industrial park to make accommodation, service works, and public utilities to serve employees working at enterprises in that industrial park.

(2) About credit for social housing development

- Determining that investment in social housing development for low-income workers is an investment item in the local medium- and long-term capital.

- Amending and supplementing regulations on capital sources for housing development through regulations on new capital sources and optimization of existing capital sources in order to limit dependence on capital sources from the state budget; towards:

To supplement the mobilization of capital from local development investment funds for social housing development; limit the purpose of using state budget capital for infrastructure development in accordance with the provisions of the Law on Public Investment, and supplement the form of capital mobilization from abroad for social housing development.

- In the near future, focus on coordinating with the State Bank of Vietnam to implement a credit program of approximately VND 120,000 billion in specific credit packages for investors and home buyers of social housing projects, workers' houses to borrow at a lower interest rate of approximately 1.5-2% compared to the average medium and long-term VND lending interest rates of state-owned commercial banks (including Agribank, BIDV, Vietcombank, Vietinbank) in the market from time to time and to non-state commercial banks that are eligible for each specific credit package as directed in Resolution 33/NQ-CP in 2023.

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(See more details in Section III, Part IV of Decision 338/QD-TTg)

Decision 338/QD-TTg takes effect from the date of signing and promulgation.

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