Vingroup boss: "We will soon start construction on a series of social housing projects in Hanoi, Ho Chi Minh City, Hung Yen, Ha Tinh"

At the Conference, Vice Chairman of Vingroup said that recently, the Government has had many mechanisms and policies to support the development of social housing, creating a relatively complete legal corridor to support and encourage businesses. participating in and developing social housing.

Speaking at the Conference to remove difficulties and promote social housing development taking place on the morning of March 16, Mr. Nguyen Viet Quang - Vice Chairman of Vingroup said: Recently, Vinhomes Company of Vingroup Group has started construction of 4 social housing projects in Hai Phong, Thanh Hoa, Quang Tri and Khanh Hoa. Once completed, these projects will add more than 10,000 social housing apartments and housing funds in localities. At the same time, Vingroup is also continuing to carry out legal procedures to be able to soon start social housing projects in Hanoi, Hung Yen, Ha Tinh, Ho Chi Minh City and other provinces and cities. .

Mr. Quang said that recently, the Government has had many mechanisms and policies to support the development of social housing, creating a relatively complete legal corridor to support and encourage businesses to participate. and social housing development. Many social housing projects are exempt from land use fees, 50% reduction in value added tax and corporate income tax; Support investment in technical infrastructure inside and outside the project; preferential loans with low interest rates and policies to support customers and individuals in borrowing, buying, and renting social housing

Through actual implementation, the Vice Chairman of Vingroup gave some opinions as follows:

Firstly, in terms of procedures for implementing social housing projects, the number of social housing procedures is currently more than that of commercial housing projects. Specifically, general procedures such as planning approval, investment policy approval, bidding to select investors; When handing over land or leasing land, social housing projects require additional procedures to confirm subjects allowed to buy or rent social housing; Procedures for appraisal of selling price and rental price of social housing. This leads to lengthy social housing implementation procedures. The total time to complete social housing project procedures from start to finish is usually about 2 years.

Second, on the preferential mechanism for commercial and service items within the scope of social housing projects. In order for social housing projects to truly be modern, civilized urban areas with full amenities to improve people's lives, in addition to improving the quality of social housing, the synchronous construction of Technical infrastructure, social infrastructure, commercial services to serve the people are essential. Especially large-scale social housing. However, the support policy for investment in construction of these projects is not clear. Therefore, if investors make synchronous investments in these projects, it will easily lead to increased costs and increased selling prices of social housing.

Third, about capital investment in social housing. Based on the review, investment capital for high-rise housing construction according to Decision No. 610/QD-BSD dated February 13, 2022 is currently lower than investment capital for commercial housing. Meanwhile, the cost and actual investment capital of commercial housing are higher than the investment capital according to regulations. This affects the quality of social housing projects and creates difficulties in revenue for investors in social housing projects because the determination of selling price must be based on the basis of investment capital.

Fourth, regarding capital sources for investing in construction, purchasing, and renting social housing, in reality, access to loan sources is still not convenient. In addition, the interest rates for preferential loans for construction investment as well as for renting and buying social housing are currently still high. For investors, the interest rate is 8%/year, for customers buying social housing 7.5%/year.

To attract investors to participate in social housing investment projects and reduce social housing prices, Vingroup offers a number of proposals.

First of all, consider minimizing procedures related to investing in the construction of social housing projects.

Second, consider promulgating a list of technical and social infrastructure items that receive investment support from the budget, land rent exemption and reduction for areas of commercial service works within the scope of the project. social housing project.

Third, consider adjusting investment capital for social housing projects to suit reality.

Credit to Cam Floral House.