A national conference on social housing development will be held this month to address existing challenges and achieve the goal of completing 130,000 social housing units for low-income earners and workers in industrial zones by 2024.

This initiative is part of the breakthrough solutions highlighted by Deputy Minister of Construction Bui Xuan Dung during the regular government meeting on August 5.

A social housing project in Dang Xa, Gia Lam District. Photo: Mai Van/ The Hanoi Times

The Ministry of Construction reported that, with almost 3100 housing units built this year, the target of 130,000 for 2024 appears out of reach without accelerated efforts in ongoing projects and concerted efforts by various ministries and local authorities.

Hanoi and Ho Chi Minh City, the two major cities of Vietnam, are urged to speed up the development of social housing to meet the targets set. Local authorities must supervise and ensure the quality of social housing projects, including the necessary technical and social infrastructure, Dung stressed. 

Each locality needs to streamline administrative procedures for project approvals, land allocation, and business support to facilitate housing supply. These efforts should be aligned with the plan to build at least one million social housing units for low-income individuals and workers in industrial zones between 2021 and 2030.

In addition, the State Bank of Vietnam is being urged to encourage commercial banks to relax credit limits, allow longer loan terms and lower interest rates on loans for home purchases.

Thirty-four out of 64 provinces have announced 78 projects eligible for preferential loans from the VND120 trillion (US$7.6 billion) credit support package for social housing. Local banks have lent over VND1.34 trillion ($53.3 million), including VND1.29 trillion ($51.3 million) to developers and VND49 billion ($1.9 million) to home buyers.

In the first half of 2024, eight projects were completed, with a total of 3,136 units. There are currently 619 social housing projects underway across the country, with over 560,000 units planned.

The Vietnamese government is implementing Resolution No. 33 by launching a credit package for investors and homebuyers in social housing projects, offering interest rates 1.5% to 2% lower than the average long-term rates of state-owned commercial banks.

Deputy Minister of Construction Bui Xuan Dung announced that the State Bank is currently consulting various ministries on adjustments to the package, which will cut interest rates for individual borrowers by 3% to 5% while maintaining a 1% to 2% reduction for developers.

At the government meeting on the same day, Prime Minister Pham Minh Chinh endorsed the State Bank's proposals and urged swift approval of the resolution to adjust the preferential lending program.

In the first half of 2024, eight projects totaling 3,136 units have been completed, five new projects with over 8,400 units are underway, and nine projects with nearly 8,800 units have been approved for investment.

From 2021 to July 31, 2024, about 619 social housing projects with over  560,000 units have started construction across the country. Among them, 79 projects have been completed with more than 4,600 units, while 128 projects are under execution, expected to add over  110,000 units. In addition, 412 projects with nearly 410,000 units have received investment approval.