Response to issues regarding incentive policies on social housing for freelancers in Vietnam

Response to issues regarding incentive policies on social housing for freelancers in Vietnam (Internet image)

The Ministry of Construction of Vietnam issued Official Dispatch 5470/BXD-QLN dated December 1, 2022 on problems with preferential loans to buy social housing.

Below is the response to issues regarding incentive policies on social housing for freelancers in Vietnam

1. What is social housing?

Pursuant to Clause 7 of Article 1 of the Law on Housing 2014, social house means any house provided for entities benefiting from the policies on housing support carried out by the State as prescribed in the Law on Housing 2014.

2. Entities eligible for incentive policies on social housing in Vietnam

Pursuant to Article 49 of the Law on Housing 2014, if the entities below satisfy requirements prescribed in Article 51 of the Law on Housing 2014, they shall be eligible for incentive policies on social housing:

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

- Households living in poverty or near poverty in rural areas;

- Households that are often affected by natural disasters or climate changes in rural areas;

- Individuals living in low income, poverty or near poverty in the urban areas;

- Employees working in enterprises inside or outside the industrial zones;

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

- Officials and civil servants prescribed in law on officials and civil servants;

- Entities who have returned official residence as prescribed Clause 5 Article 81 of the Law on Housing 2014;

- Students of institutes, universities, colleges, vocational training institutions; students of the public ethnic boarding schools using social housing during their duration of study;

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

3. Response to issues regarding incentive policies on social housing for freelancers in Vietnam

The Ministry of Construction of Vietnam received Document 9753/NHCS-TDSV on problems with preferential loans to buy social housing according to Decree 100/2015/ND-CP and Decree 49/2021/ND-CP (amending Decree 100/2015/ND-CP) on development and management of social housing.

After studying, the Ministry of Construction has the following comments:

- According to the provisions at point c, clause 10, Article 1 of Decree 49/2021/ND-CP (amending Decree 100/2015/ND-CP), then:

Eligibility conditions for households and individuals to borrow capital to buy or rent-purchase social housing are to have a contract to purchase or rent-purchase social housing with the investor in accordance with this Decree and the Law on Housing.

- At Point b, Section 4, Clause 16, Article 1 of Decree 49/2021/ND-CP stipulating documents proving residence conditions to enjoy the social housing support policy, specifically as follows:

In case the subjects registering to buy, rent, or lease-purchase social housing do not have permanent residence as prescribed at Point a, Clause 16, Article 1 of Decree 49/2021/ND-CP, then:

There must be a copy of the certificate of temporary residence registration and the certificate of social insurance payment for 01 year or more in the province or centrally run city where the social housing investment project is located.

- At Point b, Clause 2, Article 1 of Decree 49/2021/ND-CP stipulates:

Low-income people are those who work at agencies, units, and enterprises of all economic sectors or are self-employed in urban areas and whose income is not subject to regular income tax according to the provisions of the housing law and the law of personal income tax.

- Pursuant to the above provisions, if a self-employed person does not have a permanent residence, then:

Must have a copy of the certificate of temporary residence registration and the certificate of social insurance payment for 01 year or more in the province or centrally run city where the social housing investment project is located; he/she is eligible to buy, rent, lease-purchase social housing and receive preferential loans to buy, lease-purchase social housing if they fully satisfy the conditions specified in Clause 16, Article 1 of Decree 49/2021/ND-CP .

More details can be found in Official Dispatch 5470/BXD-QLN dated December 1, 2022

Ngoc Nhi

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