Vietnam Aims To Build 1 Million Social Housing Apartments By 2030
Vietnam targets to build at least 1 million social housing apartments by 2030.In 2023, a total of 28 housing projects with 13,864 apartments for low-income earners and workers at industrial parks were completed, while 16 other projects were kicked off. As many as 531 billion VND (21.7 million USD) under the 120 trillion VND credit package for social housing development has been disbursed, according to Director General of the State Bank of Vietnam (SBV)’s Department of Credit for Economic Sectors Ha Thu Giang. Accordingly, the southern province of Binh Duong registered the biggest number of projects to be completed this year with 20 projects and 4,500 apartments. The northern province of Bac Ninh registered the biggest number of apartments to be completed with 6,000 in five projects. Ho Chi Minh City registered six projects with more than 3,700 apartments and Hai Phong city, eight projects with 3,925 apartments.
The SBV will continue to direct credit institutions to drastically implement credit programmes and policies under the direction of the Government and Prime Minister, including the 120 trillion VND package, as well as coordinate with ministries and agencies to remove obstacles during the implementation process.
The development of social housing projects will open up opportunities to solve the mismatch between supply and demand and increase liquidity, . The three obstacles that hinder the work are land fund shortage, limited credit supply from the State Budget, and inconsistent construction procedures that prolong the implementation of these projects.
The revised Housing Law and the Law on Real Estate Business have added preferential policies for investors as well as simplified procedures and conditions to buy, rent social housing but the revised Land Law and Housing Law will take effect from January 1, 2025. Therefore, it is necessary to speed up the promulgation of decrees approved by the Land Law and Housing Law so that investors can easily conduct procedures and access land and capital, he said.
The 120 trillion VND support package was first implemented in April last year which aimed to provide loans with rates 1.5 -2% lower than the medium and long-term lending rates in the market to developers of social housing projects and home buyers, following the Government’s Resolution No 33/NQ-CP dated March 11 regarding solutions to remove difficulties and promote the safe, healthy and sustainable development of the real estate market. Four State-owned commercial banks will join in the disbursement of the package which will run until 2030.
Tags : Vietnam targets safe healthy sustainable development real estate market Housing Law Real Estate Business