MINISTRY OF TRAINING MINISTRY OF AND EDUCATION HOME AFFAIRS NATIONAL ACADEMY OF PUBLIC ADMINISTRATION NGUYEN THI THANH THAO STATE MANAGEMENT OF URBAN HOUSING IN VIET NAM Specialization Public Manageme[.]
MINISTRY OF TRAINING AND EDUCATION MINISTRY OF HOME AFFAIRS NATIONAL ACADEMY OF PUBLIC ADMINISTRATION NGUYEN THI THANH THAO STATE MANAGEMENT OF URBAN HOUSING IN VIET NAM Specialization: Public Management Code: 34 04 03 SUMMARY OF THE DOCTORAL DISSERTATION HA NOI, 2023 The doctoral dissertation was completed at: National Academy of Public Administration Supervisors: Prof.Dr Dinh Van Tien Dr Le Anh Xuan Reviewer 1: …………………………………………………… Reviewer 2: …………………………………………………… Reviewer 3: …………………………………………………… The doctoral dissertation is defended before the Doctoral Dissertation Assessment Council at the institutional level Venue: Room for Doctoral Dissertation Defense……, National Academy of Public Administration 77, Nguyen Chi Thanh, Dong Da, Ha Noi Time: At: On: (day) (month), 2023 The doctoral dissertation can be found at: - National Library of Vietnam; - Library of the National Academy of Public Administration INTRODUCTION The necessity of the topic Urban housing is an important material condition for urban economic development and urban labor reproduction It affects social activities and relations in the urban areas The Universal Declaration of Human Rights adopted in 1948 and the International Covenant on Economic, Social and Cultural Rights in 1966 recognized that “the right to adequate housing” was one of the basic human rights Countries in the world recognized this right in their Constitutions and affirmed the State shall ensure that everyone had affordable housing In the context of the rapid growth of the urban areas, more and more people move to the urban areas Migration results in an increase in population in the urban areas and greater demand for housing Difficulty in finding housing may make households homeless and the urban areas face unstable development Stability and sustainable development of the urban areas requires government interventions to ensure that everyone has a place to live in the urban areas Viet Nam has rapid urbanization (the urbanization rate increased rapidly from 19.6% to around 39.3% in 2020, to 40.4% in 2021; expected to reach 45% by 2025 and 50% by 2030) The population density in big cities is increasing (in 2020, the population of the country was 97.58 million people, of which urban population was 35.93 million, accounting for 36.82% of the total population, increased by 6% compared to that in 2010); therefore, the demand for housing in the urban areas is continuously increasing The Communist Party of Viet Nam and the State have paid attention to people's housing Many schemes and policies related to housing were adopted to promote housing development and take care of people's housing The Constitution (2013) stated consistently: “Everyone enjoys the right to have a legal domicile The State shall exercise a policy of housing development and create conditions so that everyone shall have housing” The national strategy for housing development for the period of 2021 - 2030, with a vision to 2045 presented the view: “Having an adequate and safe domicile is one of the basic rights and a necessary condition for comprehensive human development… Housing development is the responsibility of the State, society, and the people It is one of the important contents of the socio-economic development policies ensuring social security and urban development towards civilization and modernity…” Urban housing tends to expand and grow in both quantity and quality However, housing problems still exist such as a lack of housing (According to the Ministry of Construction, around a third of residents in big cities such as Ha Noi and Ho Chi Minh City faced housing difficulties and 90% of people aged 18-35 had no home According to the 2019 Population and Housing Census, 1,244 households did not have houses to live in and nearly 195,000 households were living in simple houses) Houses in many areas were of poor quality Unauthorized, illegal housing construction and encroachment on government land still took place The current state management of urban housing has many shortcomings and low effectiveness Government intervention is required to manage and control urban housing development Housing is attached to the residential land which is stipulated by the Constitution as the public territory of the country It is an organic relationship between housing and the residential land in the master urban planning State management is needed and the state must regulate housing at a macro level State management of urban housing directs and regulates urban housing development, solves housing issues and meets housing needs, and ensures the stability and sustainability of the housing market Currently, the theories of state management of urban housing in our country have not been fully developed; there is a lack of theories on institutions, organizational apparatus, people, and financial norms in the state management of urban housing In response to the lack of these theoretical issues, it is necessary to develop a theory for state management of urban housing in Viet Nam Housing in general and urban housing in particular have been studied in a number of domestic and overseas research works However, these studies did not focus on the state management of urban housing and failed to clarify the content and influencing factors as well as assess thoroughly the current situation of state management of urban housing and propose solutions to improve the state management of urban housing nationwide Based on the above-mentioned reasoning, the doctoral candidate chose the topic "State management of urban housing in Viet Nam" for research in the doctoral dissertation in Public Management Research purpose and tasks 2.1 Research purpose: To build a complete theoretical system for the state management of urban housing; to assess the current situation of the state management of urban housing in Viet Nam and propose solutions to complete the state management of urban housing in Viet Nam 2.2 Research tasks - To literature review of the research works related to the doctoral dissertation; - To systematize and develop a scientific basis of state management of urban housing; - To analyze the current situation of the state management of urban housing in Viet Nam Based on the scientific analysis, the author assessed the achievements, weaknesses and reasons of the current situation of the state management of urban housing in Viet Nam; - Based on the assessment of the current situation, to forecast demand for housing and provide guiding viewpoints To propose solutions and recommendations to the authorities at different levels to complete the state management of urban housing in Viet Nam Research object and scope 3.1 Research object: The state management of urban housing 3.2 Research scope - Space scope: The dissertation studied the state management of urban housing in Viet Nam - Time scope: The dissertation studied the state management of urban housing from 2014 (the time of promulgation of the 2014 Law on Housing) to 2021 and a vision to 2030 - Content scope: The dissertation focused on the key contents of the state management of urban housing in Viet Nam, specifically: (1) Formulating and promulgating institutions and policies on state management of urban housing; (2) Organizing the mechanisms and training the contingent of cadres and civil servants involved in the state management of urban housing; (3) Managing and controlling urban housing ownership, construction, business, and development; (4) Mobilizing resources for urban housing investment and development; (5) Inspecting, settling complaints, disputes, and denunciations, and handling violations in the field of urban housing; (6) Building and operating the database and information system of urban housing; (7) Conducting international cooperation in the urban housing management and development Methodology and research methods 4.1 Methodology: The doctoral dissertation was based on the methodology of dialectical materialism and historical materialism of Marxism-Leninism The assessment of the current situation was based on the guidelines and policies of the Communist Party of Viet Nam and legislation on state management of urban housing The doctoral dissertation used the public management theories and applied in the direction of linking theories with practices 4.2 Research methods Research methods have been used in the doctoral dissertation such as: desk review, systematic analysis, and sociological survey Research questions and hypotheses 5.1 Research questions How complete is the theoretical system of the state management of urban housing? What is the current situation of the state management of urban housing in Viet Nam? What solutions are needed to complete the state management of urban housing in Viet Nam? 5.2 Research hypotheses - Hypothesis 1: The state management of urban housing plays an important role in the current socio-economic development and there is no complete theoretical system for the state management of urban housing If the theoretical system for the state management of urban housing is fully developed, the state management of urban housing will be effective and efficient - Hypothesis 2: The state management of urban housing in Viet Nam has currently gained positive achievements and revealed many weaknesses One of the biggest weaknesses is the failure to meet the housing demand of urban residents and a lack of urban housing The reason for this weakness comes from the institutional system, the organization of the mechanisms, capacity of cadres and civil servants, the inspection and examination, and a lack of resources in the state management of urban housing - Hypothesis 3: It is necessary to develop synchronous and comprehensive solutions to complete the state management of urban housing in Viet Nam The effectiveness of the state management of urban housing is currently average; if the state management of urban housing is completed in terms of legal documents and policies, the organization of the management mechanisms, the development of the contingent of cadres and civil servants, the strengthened inspection and examination of urban housing, the effectiveness of the state management of urban housing will be ensured Mobilization of resources in society for urban housing development and information technology application in urban housing management will contribute to the realization of the goals of the state management of urban housing in Viet Nam which are to meet the demand for housing, ensure social security, and maintain sustainable development of the urban areas New contributions of the dissertation - The dissertation reviewed domestic and overseas research works related to the state management of urban housing - The dissertation systemized and supplemented the theoretical basis of the state management of urban housing, specifically: clarifying the connotation of the concept of state management of urban housing, the content of state management of urban housing, and the factors influencing state management of urban housing - The dissertation summarized the experiences of selected countries and drew some implications for the state management of urban housing in Viet Nam - The dissertation comprehensively assessed the current situation of the state management of urban housing in Viet Nam and identified the achievements and weaknesses, reasons of weaknesses in the state management of urban housing in Viet Nam - The dissertation forecasted the socio-economic context and demand for urban housing in the coming time by 2030 and synthesized general views on completing the state management of urban housing - The dissertation proposed solutions to complete the state management of urban housing in Viet Nam: 1) Completing the institutions and policies on state management of urban housing; (2) Strengthening the apparatus of the state management of urban housing; (3) Improving the capacity of cadres and civil servants of state management of urban housing; (4) Strengthening the resource mobilization for urban housing development; (5) Accelerating the inspection, examination, supervision, and handling of violations of urban housing; (6) Completing the database and information system of housing and real estate market; (7) Strengthening management and control of urban housing ownership, construction, and business; (8) Developing specific regulations on housing for large urban areas Significance of the dissertation 7.1 Theoretical significance The dissertation was an in-depth research work on the state management of urban housing The new contributions presented in Section showed that in terms of theory, the dissertation supplemented and clarified some theoretical issues of the public management and urban management sciences Moreover, the dissertation was a source of arguments to supplement and complete the theories and viewpoints of the Party and the State's direction on the state management of urban housing in Viet Nam to meet the goal of sustainable development 7.2 Practical significance - Specific research results of the dissertation could be used as a reference for related studies and provide inputs for the urban governments in the effective urban housing development and management to realize the development goals - The data in the dissertation could be used as illustrative examples in teaching public management in general and the issues related to the state management of urban areas; - The analysis and assessment of the current situation and specific solutions proposed in the dissertation could be referred to by the state management agencies for urban housing in formulating guidelines, completing policies and legislation, promulgating administrative management decisions, and improving the state management of urban housing in Viet Nam Structure of the dissertation In addition to the introduction, conclusion, references, and appendices, the dissertation "State management of urban housing in Viet Nam" was structured into four chapters: Chapter Literature review of the research works related to the dissertation Chapter Scientific basis of the state management of urban housing Chapter The current situation of the state management of urban housing in Viet Nam Chapter Viewpoints and solutions to improve the state management of urban housing in Viet Nam Chapter LITERATURE REVIEW OF THE RESEARCH WORKS RELATED TO THE DISSERTATION Domestic and overseas research works related to the dissertation were reviewed and categorized into two groups, including: i) research works on urban housing; and ii) research works on the state management of urban housing The dissertation identified the issues which were studied and the "gaps" to be studied further, specifically: In terms of theoretical issues Firstly, the contents of the state management of urban housing were not consistent in the reviewed studies Secondly, there was no research work on tools and methods of the state management of urban housing and the factors influencing the state management of urban housing Thirdly, there was a lack of research work that comprehensively studied the state management of urban housing and analyzed the contents of the state management of urban housing such as institutions, organizational apparatus, human resources, finance, inspection, examination In terms of practical issues Only few studies assessed the current situation of the main contents of the urban housing state management regarding institutions, organizational apparatus, human resources, finance, inspection, examination and handling of violations The related research works mostly focused on a single aspect of urban housing such as social housing, tax policy, finance, development investment, or orientation of the supply - demand market Moreover, the current data of the state The objects of the state management of urban housing are urban housing, organizations and individuals participating in the activities related to the use, sale, construction, and development of urban housing Specifically, they are urban housing, urban residents, and investors The goal of the state management of urban housing is to meet the housing needs of urban residents; ensure the maintenance, rational and economical use, and continuous development of the urban housing fund Methods used in the state management of urban housing: Administrative management methods, economic methods, methods of communication and education Tools of the state management of urban housing are policies, laws, and plans 2.2 Contents of the state management of urban housing The following is the contents of the state management of urban housing: i) Formulating and promulgating institutions and policies on state management of urban housing; ii) Organizational apparatus of the state management of urban housing; training of the cadres and civil servants involved in the state management of urban housing; iii) Managing and controlling urban housing ownership, construction, business, and development; iv) Mobilizing resources for urban housing investment and development; v) Inspecting, settling complaints, disputes, and denunciations, and handling violations in the field of urban housing; vi) Building and operating the database and information system of urban housing; vii) Conducting international cooperation in the urban housing management and development 2.3 Factors influencing the state management of urban housing There are objective and subjective factors influencing the state management of urban housing Objective factors include economic, political, social factors; development of science - technology; real estate market and land fund factor; urban characteristics 11 Subjective factors include people's awareness and responsibility in complying with the law, investor’s capacity, uniformity and feasibility of the current policies and laws, capacity of cadres and civil servants, capability of attracting and effectively using financial resources 2.4 Urban housing management experience of selected countries and implications for Viet Nam The dissertation explored the urban housing management experience of South Korea, Singapore, and China The following is the implications for Viet Nam: First, governments of the selected countries paid special attention to solving the issue of housing for all segments in society Second, governments timely issued documents on housing management and provided complete information on housing management Third, housing development and management policies must be consistent with the master construction planning Fourth, developing a system of housing regulations and standards for management Fifth, establishing specialized organizations or units in charge of housing guaranteed by the State, which helps assure the people Sixth, implementing policies on the database and information system of urban housing to realize the objective of interoperability between central and local management agencies Seventh, the selected countries formed and developed housing funds Eighth, calling for investment to develop diverse types of housing Chapter THE CURRENT SITUATION OF THE STATE MANAGEMENT OF URBAN HOUSING IN VIET NAM 3.1 Overview of urban housing in Viet Nam 3.1.1 The current situation of urban housing ownership The majority of households live in houses/apartments of their own ownership Renting/borrowing houses is increasing, especially in the urban areas 12 3.1.2 Type of housing: The percentage of households living in solid or semi-solid houses in the urban areas is higher than that in the rural areas, which is 98.2% and 90.3% respectively Households mostly live in separate houses Apartment buildings are increasingly preferred by households in urban areas 3.1.3 Number of urban housing: In 2021, new licensed real estate projects continue to decrease compared to that in 2020, which limited the supply of real estate and housing, especially housing for low-income people 3.1.4 Housing prices: Despite the deflation caused by the pandemic, housing prices continued to increase 3.1.5 Quality of urban housing: The average living standard per capita was increasing but failed to reach the target set out in the Strategies for Housing Development; poor quality housing still existed 3.1.6 Meeting the needs for urban housing About 70% of urban residents did not afford houses of the commercial housing projects with minimum quality and at the lowest market prices Affordable housing was in a serious shortage Notably, social housing in the urban areas only met about 30% of the demand 3.2 The current situation of the state management of urban housing in Viet Nam 3.2.1 Formulating and promulgating institutions and policies on state management of urban housing - Promulgating institutions of state management of urban housing: (1) Promulgating and organizing the implementation of the legislation on urban housing management; (2) Formulating and promulgating technical standards and regulations; (3) Communicating and disseminating legal normative documents and implementing the public administration reform - Formulating and directing the implementation of policies on urban housing development and management: (1) The Government promulgated the national strategies for housing development by 2020 with a vision to 13 2030, for the period of 2021-2030 and a vision to 2045, which stated the promotion of social housing to meet the housing needs of the people facing with difficulties in housing such as low-income urban residents, industrial park workers, cadres, civil servants, public employees, and so on (2) Developing and implementing projects for urban housing development and management; (3) Local authorities promulgated programs and plans for local housing development 3.2.2 Organizational apparatus and training of cadres and civil servants involved in the state management of urban housing - Organizational apparatus of the state management of urban housing: Government, Ministry of Construction, relevant ministries and agencies, People's Committees at all levels - Training cadres and civil servants on the state management of urban housing to improve their capacity: the training was getting more attention from the Ministry of Construction, the Department of Housing and Real Estate Market Management, and urban governments 3.2.3 Managing and controlling the urban housing ownership, construction, business, and development - Management of urban housing records and state-owned housing funds: (1) While housing records were managed in two forms: paper-based (classification and numbering) and electronic-based (a specific identification number), the paper-based management was the main form (2) Management of the state-owned housing fund: the official residence fund is currently managed by various agencies - Housing registration and issuance of certificates of homeownership: there were cases when buyers lived for many years in the houses of the housing development projects in big cities but were not yet granted a certificate or had to return the granted certificate - Permitting or suspending the housing construction and renovation not complying with the regulations: (1) The implementation of Directive No 08/CT-TTg resulted in continuous improvement of the Dealing with 14 Construction Permit indicator of Viet Nam (2) Renovation and reconstruction of apartment buildings in the urban areas: The renovation and reconstruction of apartment buildings gained good achievements in some localities such as Hai Phong and Nghe An but undertook a slow pace in other localities such as Ha Noi and Ho Chi Minh City - Urban housing business management: The control of real estate trading floors, organizations, and individuals practicing real estate brokerage was strengthened The acts of change-hands selling, "manipulating prices" and disturbing information on the real estate market were corrected 3.2.4 Mobilizing resources for investment and development of urban housing - Policy decisions on investment projects on urban housing construction; appraisal, approval, adjustment, suspension of implementation of the investment projects for urban housing construction: The quality of project appraisal, design and construction estimates was improved However, the procedure for investment projects for urban housing construction was complicated with involvement of various agencies and time consuming, which caused difficulties for investors and could incur additional costs - Mobilizing investment in housing construction for the groups of policy beneficiaries or the poor with low income in the urban areas: (1) The main source of capital for the real estate market was bank credit and other sources such as personal investment, remittances, capital from the stocks and bonds issued by listed companies, and FDI capital (2) The investment in social housing construction achieved important initial results but failed to meet the demand, which was due to the lack of credit sources for preferential loans and the lack of a land fund 3.2.5 Inspection, settlement of complaints, disputes and denunciations, and handling of violations in the field of urban housing - The housing inspection of the Ministry of Construction in 2021 achieved the following results: 06 inspection conclusions on the state management of construction and construction investment, 18 inspection 15 conclusions on management and use of the funds for maintenance of the shared areas of the apartment building - In 2021, the Ministry leaders and the Citizen Reception Office of the Inspectorate, Ministry of Construction had 81 citizen receptions; received and dealt with 507 petitions; received and settled 05 complaints and 02 denunciation cases within their jurisdiction 3.2.6 Developing and operating the database and information system of urban housing The Ministry of Construction completed the information technology technical infrastructure and shared software system connecting to localities to serve the management, operation, and exploitation of the information systems of housing and the real estate market The provincial Departments of Construction were granted two management accounts, which allowed them to create accounts for district authorities Other departments and agencies had to report according to the provisions of Decree 117 and Circular 27 However, the software adoption in localities faced difficulties 3.2.7 International cooperation in urban housing development and management There were two prominent efforts of international cooperation in housing: The Component Project "Support to build storm and flood resistant houses" under the Project "Improving the resilience of vulnerable coastal communities to climate change related impacts in Viet Nam" was non-refundable assistance, funded by the Green Climate Fund (GCF) through the United Nations Development Program (UNDP); The project “Establishment of the 2021-2030 Comprehensive Social Housing Policy in Viet Nam” was jointly implemented by the Ministry of Construction and the Korea International Cooperation Agency (KOICA) 3.3 Achievements and weaknesses of the state management of urban housing in Viet Nam at present 3.3.1 Achievements 16 Firstly, the system of laws and policies on urban housing development and management was relatively complete and continuously supplemented and improved; Secondly, the Law on Housing and related laws were timely communicated and and disseminated widely in diverse forms; Thirdly, more attention was given to the training to improve the capacity of cadres and civil servants involved in the state management of urban housing; Fourthly, the policy decisions on investment and appraisal of the urban housing construction projects followed a procedure and brought about positive impacts; Fifthly, the database and information system of urban housing and real estate market was increasingly upgraded, completed and widely used by authorities at all levels; Sixthly, the examination, inspection, and settlement of violations related to urban housing and urban construction received good feedback from the people; Seventhly, international cooperation in urban housing management was conducted effectively and in a proactive manner 3.3.2 Weaknesses First, programs and plans for housing development in general and urban housing development in particular were late developed and slowly implemented, which failed to achieve the set targets Second, there was an absence of focused, unified institutions of state management of urban housing Third, state-owned housing was not managed strictly Fourth, the apparatus of the state management of urban housing remained fragmented and not consistent Fifth, there was a shortage of cadres and civil servants assuming the state management of urban housing 17 Sixth, urban housing records were managed improperly The procedures of granting certificates of homeownership and urban housing construction permits were complicated and cumbersome, which caused long waiting time and frustration in society Unauthorized and illegal housing construction was a common problem Seventh, the mobilization of financial resources for urban housing faced difficulties and the financial resources were in shortage 3.3.3 Reasons of weaknesses Objective reasons: The impact of the Covid-19 pandemic; strong urbanization process; demographic characteristics of the urban population; the income of urban residents in general was lower than the purchase price of urban housing Subjective reasons: First, the current amendment and supplement of related laws resulted in the scattering of provisions for the responsibilities of relevant ministries and agencies which were stated in different documents The scattering caused overlaps and contradictions in the state management of urban housing Second, the state management agencies were not fully aware of the important significance and role of the control and management of urban housing in the locality Third, the poor organizational and management capacity made the apparatus not capable of performing well the assigned functions and tasks Fourth, the capacity of the cadres and civil servants was limited Fifth, the investor's resources were limited Sixth, public awareness of legislation was limited Seventh, there was a contradiction between the existing resources of the urban areas and the needs for urban housing development Eighth, the market mechanism was not applied completely in urban housing development and management Ninth, the State Bank of Viet Nam stipulated limitations on credit granted for real estate 18 ... situation of the state management of urban housing in Viet Nam and propose solutions to complete the state management of urban housing in Viet Nam 2.2 Research tasks - To literature review of the research... housing in Viet Nam Based on the scientific analysis, the author assessed the achievements, weaknesses and reasons of the current situation of the state management of urban housing in Viet Nam; - Based... situation of the state management of urban housing in Viet Nam? What solutions are needed to complete the state management of urban housing in Viet Nam? 5.2 Research hypotheses - Hypothesis 1: The state