The Supply of Social Housing Has Not Grown as Expected

The development of social housing is one of the essential factors in meeting the housing needs of citizens and ensuring social welfare. However, the government's target for 2024, which aims to complete 130,000 social housing units, is facing numerous challenges and obstacles in terms of policy, finance, and planning. This issue not only concerns providing housing for low-income groups but also affects the overall stability of the economy and society. Despite social housing projects being viewed as an important solution for promoting sustainable development, the actual implementation progress has shown significant deficiencies.

Based on the evaluation of monitoring results of the implementation of real estate market management policies and laws as well as the development of social housing during the period from 2015 to 2023, the National Assembly monitoring team confirmed that although some localities have allocated land for the construction of social housing, most of them have not secured the necessary independent land supply. Instead, the development of social housing mainly relies on a 20% land allocation from commercial residential projects, which weakens the stability and sustainability of social housing projects. Relying on these land sources not only increases the difficulty of planning management but also reduces the feasibility of the projects, as many investors do not prioritize allocating enough land for social housing.

According to data from the Ministry of Construction, from 2021 to the third quarter of 2024, there have been 622 social housing projects launched nationwide with a total scale of 565,177 units. However, only 79 projects have been completed, providing 42,414 housing units. The proportion of housing that has been started and completed has only reached about 35.6% of the target of the "2021-2030 plan to build at least 1 million social housing units for low-income groups and industrial park workers." These figures reveal a significant gap between expectations and reality. Furthermore, uneven project progress across regions has led to widening discrepancies between supply and demand, especially in densely populated areas with high housing demand.

Key challenges include the lack of independent land, complicated legal procedures, and insufficient coordination between government agencies and investors. The lack of independent land resources has made the development of social housing projects constrained and lacking in initiative. Furthermore, the legal procedures are overly cumbersome and complex, involving multiple steps such as basic design approvals, construction permits, and fire safety approvals, which often take months or even years to complete. These processes not only increase project costs but also extend implementation timelines, significantly reducing the ability to meet citizens' housing needs.

Additionally, the lack of coordination between government agencies and investors is another major issue. Management agencies and investors need closer cooperation to address issues such as land clearance, capital allocation, and infrastructure development. Financial shortages are a major barrier, and in many cases, commercial banks are reluctant to provide funding for social housing projects due to concerns about low profitability and high risks. Although the government has provided financial support, it is still insufficient to ensure the viability of many projects, leading to delays or slow progress in construction.

To improve the current situation, the Ministry of Construction has required localities to focus on supplementing and amending planning to ensure sufficient land allocation for social housing development. Furthermore, the Ministry has promoted measures to maintain social housing prices within a reasonable range and continued to reform administrative procedures to increase supply. In particular, prioritizing the review and identification of suitable locations for social housing development within urban planning reform is crucial. Moreover, simplifying the approval process and supporting investors in accessing funding are important measures to ensure project progress and quality.

One strategic solution is to diversify the types of social housing, from rental housing to rent-to-own, to meet the needs of different groups, including industrial park workers and low-income residents in urban areas. Expanding these forms will help increase flexibility in housing choices for citizens and alleviate the financial burden for those unable to buy houses. At the same time, the Ministry of Construction also suggests that investors be more proactive in completing legal procedures, ensuring financial readiness so that construction can commence immediately after approval.

The promotion of social housing supply also heavily depends on funding support policies. Although the government has proposed low-interest preferential loan packages for social housing projects, there are still many obstacles in accessing these funds. Banks should implement more flexible policies to create favorable conditions for investors. At the same time, support measures from the government, such as exemptions and reductions in land rent and taxes, also need to be more effectively implemented to encourage investor participation.

Looking to the future, the Ministry of Construction and related agencies are committed to continuing close coordination to achieve the set goals, accelerate the progress of social housing projects, and ensure their quality while maintaining prices at reasonable levels to ensure accessibility for citizens. The combination of administrative reform, financial support, and effective planning is key to promoting the supply of social housing, meeting the increasing demand of citizens, and fostering the stability of the real estate market and sustainable economic development of the nation.