Special mechanisms for social housing development

The Resolution takes effect on June 1, 2025, except for provisions delegated to the Government for detailed regulation. The pilot’s duration of the Resolution is five years.

Minister Tran Hong Minh presented a report explaining and incorporating feedback.

Before the Resolution was officially adopted by the National Assembly, Minister of Construction Tran Hong Minh presented a report explaining and incorporating feedback.

According to Minister Tran Hong Minh, the regulations concerning the National Housing Fund have been revised as follows: the National Housing Fund is a state financial fund outside the state budget, has legal entity status, and operates on a non-profit basis. The National Housing Fund comprises the Central Housing Fund established by the Government and Local Housing Funds established by provincial-level People's Committees.

The National Housing Fund is focused on forming a rental housing stock with the aim of conserving land resources.

Multiple individuals may alternately use the housing stock, ensuring long-term and stable housing for those unable to afford to purchase social housing.

Currently, most rental housing stocks from enterprises in various projects are sold after a certain period, which undermines stability for rental housing beneficiaries.

At the same time, the Fund’s spending tasks, scale, and other aspects will be specified in the Government’s Decree detailing the implementation of this Resolution, ensuring that expenditures align with the Fund’s purpose and operations.

Regarding social housing support policies, the Government proposed to include provisions on eligibility for housing support policies for individuals affected by the reorganization and restructuring of administrative units.

Local authorities are also empowered to assess and determine eligibility for social housing support based on relocation periods, transportation infrastructure conditions, and regional characteristics, ensuring convenient accommodation near workplaces.

The list of eligible entities has been expanded to include: enterprises, state agencies, political organizations, and socio-political organizations that may rent social housing to accommodate their officials, civil servants, public employees, and workers, thereby enhancing stability and peace of mind for the workforce.

Notably, to create even more favorable mechanisms for attracting enterprises to invest in social housing construction, the Minister of Construction stated that the draft Resolution has streamlined and reformed administrative procedures, shifting from pre-approval controls to post-implementation oversight, coupled with enhanced supervision.

Elimination of bidding procedures to select investors and approval of investment policies under the Investment Law; instead, investors will be directly assigned without bidding. This reduces about 200 days, equivalent to 70% of the current time requirement.

Elimination of the requirement to prepare, appraise, and approve detailed planning tasks, cutting 65 days (a 100% reduction).

Removal of feasibility study report appraisal by specialized construction agencies, saving 15 to 35 days, depending on project scale (100%).

No requirement for open bidding for construction contractor selection; instead, simplified direct contractor appointment procedures are allowed. This cuts 45 to 105 days, depending on whether the bidding is domestic or international (75-90%).

Exemption from construction permits for standard or typical designs, saving 20 to 30 days, depending on type and class of the construction (100%).

No requirement for provincial-level appraisal of social housing sale or lease-purchase prices; instead, the investor determines and approves prices. Upon completion and handover, the investor must conduct audits, finalization and submit documentation to provincial authorities for inspection. This cuts at least 30 days (100%) compared to current regulations.

Additionally, the Resolution adds to the Government’s responsibility to establish regulations for preventing loopholes, corruption, misconduct, waste, and policy exploitation; and to provide measures for inspecting, monitoring, and ensuring the quality of social housing.

Hải Ninh