Realizing huge demand of house of people in the city, the city adopted “open” policy to call for social contribution in building social houses.
In a meeting on the city’s socio-economic condition in first five months of the year, agencies blamed the shortage of land fund and capital for the hiccup of the building program.
As per the law on housing effective in 2014 and the government’s resolution No. 100/2015 on developing and managing social house, commercial house in urban areas, it is required to have 20 percent of land fund for social housing projects.
In industrial parks, the government said that abundant land in the parks will be allowed to build house for workers. However, a few investors follow the regulation to build apartments.
Capital for social house is taken from state budget, national bonds and development support fund. From 2013 to 2016, the government approved social housing program by launching a home credit package worth VND30 trillion (US$1.3 billion) with preferential interest to support enterprises to build social houses.
As per the Department of Construction, by 2020, the city will remove and build at last 50 percent of dilapidated apartments which were built before 1975. However, in ten past years, the city had removed 32 old condos to build new ones.
In 2017, HCMC authorities plan to continue renovating 10 other condo buildings and pay site clearance compensation of five apartment buildings.
Some enterprises complained they are unable to access to policies of rebuilding old condos. A businessman said that his company presented a project to rebuild an old condo to related agencies seven years ago yet it has not been approved.
In its letter to answer HoREA’s petition on fund for social housing program, the Ministry of Construction said that the National Assembly Committee approved to give additional VND2 trillion for building house for those who partook in the country’s revolution and for banks to link with the program.