Inadequate, no different from “beer with peanuts”
At the Conference on amendments to “Land Law – Housing Law – Law on Real Estate Business, for housing development and real estate market” organized by Vietnam Real Estate Association (VNREA), the Experts and representatives of businesses have had opinions about the regulation that commercial housing developers must spend 20% for social housing (social housing) of the Housing Law.
Assoc.Prof.Dr. Hoang Van Cuong, Member of the National Assembly, member of the National Assembly’s Finance and Budget Committee shared that the current regulation that commercial housing developers must spend 20% for social housing is extremely inadequate, no different. beer with peanuts”. This regulation comes from the desire for fairness in life, so that the poor can live like the rich, but this is impossible.
Mr. Luyen Van Phuong, Deputy Director of Hanoi Department of Construction also said that the current regulations on social housing are very inadequate. Hanoi is proposing to build centralized social housing, statistics show that the demand is about 6.8 million m2 of social housing floor by 2030. But the total floor area of housing that has been implemented is only about 1.2 million. m2 floor.
In addition, only the State management agencies should arrange the planning, not the investors arranged in the projects, clearly the mechanism for selecting investors. Because the projects have already passed the auction, and then have to spend 20% for social housing, the State has to calculate to return it to investors, which is very inadequate.
Mr. Luyen Van Phuong, Deputy Director of Hanoi Department of Construction shared his opinion at the Conference.
Assoc. Dr. Doan Hong Nhung, deputy head of the Legal Department of the Vietnam Real Estate Association, also said that the regulation on land fund of 20% to build social houses in projects is really inflexible and difficult to be feasible in business practice.
On the business side, Mr. Vuong Quoc Toan, representative of Lan Hung Real Estate Group, shared: “We have a number of proposals to amend the law related to social housing development.
Firstly, we should amend the regulation to deduct 20% of the land fund to build social housing in commercial housing projects. This is a regulation that has too many shortcomings, we recommend that it should be removed as soon as possible.
Second, the regulation of 20% of rental housing currently has no tenants. Therefore, we should modify in the direction of reducing it to 5 – 10%. This will help reduce budget waste, and projects that no one rents should be sold to businesses. Like our business, we are currently entangled with thousands of rental apartments that no one rents.
Third, in Article 49 of the Law on Housing, it is stipulated that many subjects such as civil servants, public employees, people with meritorious services, etc., are eligible to buy social housing. To avoid difficulties when selling businesses, we suggest unifying the name, using only the name of social housing for low-income people, but not distinguishing specific objects.
Regarding the above opinion, Mr. Nguyen Manh Khoi – Deputy Director of the Department of Housing and Real Estate Market Management, Ministry of Construction shared, in the near future we will rename the social housing including social housing for low-income people in Vietnam. urban areas, for workers in industrial zones and has a separate object, the people’s armed forces.
Mr. Nguyen Manh Khoi – Deputy Director of Housing and Real Estate Market Management Department, Ministry of Construction spoke at the Conference.
Also related to the compulsory spending of 20% of the total residential land area to build social housing in a commercial housing project, urban area, said Mr. Nguyen Le My Hung, Deputy Director of HCMC Project Management Division. In Ho Chi Minh City, Novaland Group proposed, the investor of a commercial housing investment project has the option to spend 20% of the land fund in the project to build social housing or convert the land fund 20 % for social housing development to another area legally owned by the investor to develop an independent social housing project to ensure adequate land fund for social housing development and practice. fulfill the obligations of the investor.
Before the opinions of experts, representatives of businesses, Mr. Khoi on behalf of the Housing and Real Estate Market Management Department, the Ministry of Construction thanked the sharing of experts, managers, business leaders. Karma. Regarding the Law on Housing, the Law on Real Estate Business, the view of the Ministry of Construction is that we need to submit it to the National Assembly in parallel with the Land Law so that the conflicting and overlapping issues are amended at the same time and synchronized.
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