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Analyze and evaluate the efficacy of thesocial housing development program in dongnai province from 2016 to 2020

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Cấu trúc

  • 1. The reason for the topic selection (7)
  • 2. Objectives of the essay (7)
  • 3. Research methods & data source (8)
  • 4. Research object and scope (8)
  • 5. Structure of the essay (8)
  • CHAPTER 1. THEORETICAL BASIS (9)
    • 1.1. The concept of public expenditure and the evaluation of public expenditure (9)
      • 1.1.1. The concept of public expenditure (9)
      • 1.1.2. The concept of evaluating public expenditures (10)
    • 1.2. The concept of social housing and the development of social housing (10)
      • 1.2.1. Social housing concept (10)
      • 1.2.2. Social housing development (11)
  • CHAPTER 2. ANALYSIS AND EVALUATION OF THE EFFECTIVENESS OF (13)
    • 2.1. About the program (13)
    • 2.2. Program analysis (13)
      • 2.2.1. The necessity of the program (13)
      • 2.2.2. Objectives of the program (14)
    • 2.3. Market failure in Dong Nai housing development (15)
      • 2.3.1. Imperfect competition (15)
      • 2.3.2. Information asymmetry (16)
      • 2.3.3. Externalities (17)
      • 2.3.4. Incomplete Markets (17)
    • 2.4. Government interventions (18)
    • 2.5. Evaluate the effectiveness of the program (20)
      • 2.5.1. The overall evaluation of the program's outcomes (20)
      • 2.5.2. Evaluation of economic and social efficiency (22)
      • 2.5.3. Limits of the program (24)
  • CHAPTER 3. CONCLUSIONS & RECOMMENDATIONS (26)
    • 3.1. Land solutions and house model regulations (26)
      • 3.1.1. Recommendations of Tran Ngoc Thanh Quyen (26)
      • 3.1.2. Recommendations of Luong Thi Ngan (27)
    • 3.2. Recommendations on capital and administrative procedures (28)
      • 3.2.1. Recommendations of Vo Thi Minh Hieu (28)
      • 3.2.2. Recommendations of Nguyen Ngoc Kim Ngan (28)

Nội dung

Name Student ID Task Evaluate Vo Thi Minh Hieu K194030358 Program analysis, Evaluation ofeconomic and social efficiency, Land solutions and house modelregulations, ConclusionLuong Thi Ng

The reason for the topic selection

Housing is regarded as one of a person's most basic needs It plays an essential part in the reproduction of labor by providing both tangible and immaterial satisfaction to users, so favorably contributing to the country's socio-economic progress During the country's period of urbanization, the wealth disparity has hindered many workers from having a home in which to have a stable life Therefore, our government is concerned about the subject of social housing for people and is regularly revising development strategies In many localities, this issue is considered a political task because the houses are not only meaningful in terms of social security but also in terms of political security. Dong Nai has several advantages in terms of both natural and human resources due to its location in the Southeast area, enabling it to develop agriculture, industry, and services, contributing significantly to the regional economy As a result, this is an area with a high pace of urbanization According to the Dong Nai Statistics Department,approximately 1 million employees from other provinces and cities presently work in the area, accounting for more than 60% of all migrant workers Because the majority of workers are low-income, this indicates an increase in demand for owning and renting social housing With such a high demand for housing, Dong Nai province has always been active in providing accommodation for employees, and the program has yielded numerous beneficial results for migrant workers and students after the implementation of the program However, there are still restrictions in the program implementation process that are impeding the local's socio-economic development As a result, the group chose the topic "Analyze and evaluate the efficacy of the social housing development program inDong Nai province from 2016 to 2020" to consider the program's effective and ineffective aspects and recommend strategies to improve it in subsequent phases.

Objectives of the essay

Analyze the effectiveness of the program by evaluating the development of social housing developments in Dong Nai over a 5-year period From there, identify the reasons for the program's ineffectiveness and give recommendations for improving the

1 effectiveness of the goal program of social housing construction in the locality in the coming years.

Research methods & data source

Data collection methods: The essay uses secondary data collected from government documents, local portals, online newspapers, and other sources about practicality in the development of social housing projects for residents in the area. Data analysis methods: After being scientifically and statistically processed in line with the research, the data will be studied and presented in tables and graphs to evaluate the program's efficiency.

The secondary data source of the essay is mainly taken from Dong Nai Newspaper website, Dong Nai Department of Construction

Research object and scope

Research object: The province of Dong Nai's social housing building program for the years 2016 to 2020 is based on Decision No 4197/QD-UBND.

Scope of content: research on the content, implementation process, and results of the program implementation

Spatial scope: research in Dong Nai province

Scope of time: research in the period 2016-2020

Structure of the essay

Chapter 2 Analysis and evaluation of the effectiveness of the social housing development program in Dong Nai province in the period 2016 - 2020

THEORETICAL BASIS

The concept of public expenditure and the evaluation of public expenditure

1.1.1 The concept of public expenditure

Public expenditure is a concept belonging to an economic category that has existed for a long time Public expenditure appears to be associated with the birth, existence, and development of the state Through different periods and stages of socio-economic development, the concept of “public expenditure” has also changed to a certain extent In fact, when discussing the concept of “public expenditure” there are many different views and interpretations.

“Public expenditures are expenditures made by the state in order to perform the inherent functions of the state in providing public goods and serving socio-economic benefits for the community” (Duong Thi Binh Minh, 2005) This stems from the state's function of comprehensively managing the socio-economic environment Public spending reflects government policies by providing financial resources for the implementation of those policies.

According to Assoc., Dr Su Dinh Thanh, “public expenditure reflects the value of goods purchased by the government to provide public goods for society to perform the functions of the state Public expenditure implements the policy of income redistribution.” The characteristic of public expenditure is its non-reimbursable or non- reimbursable nature, reflected in the fact that the results of public expenditure do not correspond to expenditures in terms of quantity, quality, time, and place Many government expenditures have long-term benefits that are difficult to quantify using the corresponding value criteria Public expenditure is a tool of the government to provide public goods for society, build infrastructure, allocate resources, distribute income, stabilize the macro-economy, and attract investment capital, private sector and economic restructuring

Thus, public expenditures are mainly those parts of the state budget that have been approved by the National Assembly Public expenditure creates a redistribution across sectors of the economy The government plays a central role in the income redistribution process Through public spending, the government provides society with the income it has

3 taken away by providing necessary public goods that the private sector is unable to provide or inefficiently provides.

1.1.2 The concept of evaluating public expenditures

Public expenditure assessment is the assessment of budget policy making and institutional building It is a key tool in analyzing public sector problems and explaining why it is necessary for the public sector to finance socio-economic activities (Public Finance Theory, Assoc.Prof.Dr Dinh Thanh & Dr Bui Thi Mai Hoai, 2006).

The need to assess public expenditure: state budget balance is one of the most basic components of national finance and is a prerequisite to ensuring healthy stability for the economy national finance, in which public spending is an important indicator that directly affects the state of the budget balance The basic purpose of public expenditure assessment is to help the government use public financial resources more efficiently by prioritizing expenditures to bring about practical benefits for economic development and society.

The content of the public expenditure assessment:

Overall, public expenditure assessment is an analytical process on two aspects:

Qualitative aspect: evaluates the selection of public goods that the government should provide to society.

Quantitative aspect: considers the costs of providing public goods and the benefits that public goods bring.

On the basis of analyzing costs and benefits between public goods provided by the government, the government will have a basis for comparison and judgment to choose the right type.

The concept of social housing and the development of social housing

The concept “social housing” was first used in a legal document in 2005, when the

“Law on Housing” defined it as “housing invested by the state, an organization, or an individual construction investment for lease or hire purchase by the entities indicated in Articles 53 and 54 of this Law.” “Social housing” is defined as “housing with state support for recipients of housing support policies in accordance with the Housing Law 2014”, according to the Law on Housing (2014).

However, author Hoang Vu Linh Chi defines social housing as “a type of housing owned by government agencies (can be central or local) or non-profit organizations built with the purpose of providing affordable housing to certain groups prioritized in society and allowed to rent or live in at a low price compared to the market price” in a research paper titled “Social Housing Policy of Vietnam.”

Therefore, the concept of social housing legalized in subsequent legal documents has an indirect definition, which can be understood as a type of housing built for disadvantaged groups in society, approved by the State Government The country gives priority to 10 types of subjects, of which the largest number are: poor and near-poor households in rural areas; low-income people; poor and near-poor households in urban areas; employees working inside and outside the industrial park; cadres, civil servants, and public employees; pupils and students.

Social housing development is the investment, construction, renovation and increase of housing area to provide for social objects, increase beneficiaries according to local regulations with the participation of more and more investors participating in the social housing development investment market Development of social housing is one of the important solutions to promote the development of the housing market, and at the same time provide housing support for social policy beneficiaries, low-income people and the poor housing difficulties in order to contribute to political stability and social security. Contents of social housing development:

Development of social housing in terms of quantity: the development of social housing in quantity can be understood as the development of the construction floor area, the

5 development of the average floor area/household (or person), increasing the number of objects beneficiaries of social housing or the number of investors participating in the housing development investment market.

Development of the type of social housing supply: is to expand and diversify the types of housing supply so that more individuals can participate in the housing supply process, thereby increasing the budget housing development for society Currently, there are two basic types of supply: social housing built by the State with state budget capital for rent and social housing built with non-budget capital Government.

Development of social housing services: is to expand and diversify services provided so that beneficiaries of social housing increase opportunities to access housing services. Currently, there are three forms of housing service provision including: sale, lease, lease- purchase according to local policies and subjects.

Improving the quality of social housing: is increasing the satisfaction level of beneficiaries of social housing through the following activities: improving the quality of design and construction to improve the quality of housing, thereby improving satisfaction through enjoying related services such as facilities, surroundings,

ANALYSIS AND EVALUATION OF THE EFFECTIVENESS OF

About the program

The National Housing Development Strategy to 2020 and Vision to 2030 was approved by the Prime Minister on November 30, 2011, based on Resolution No. 117/2014/NQ-HDND dated 11/07/ 2014 of the Provincial People's Council on the adjustment of Resolution No 114/2008/NQ-HDND dated July 24, 2008 of the Provincial People's Council on the housing development program in Dong Nai province until 2010 and orientation to In 2020, the People's Committee of Dong Nai province decided to

"Promulgate the plan for social housing development in Dong Nai province for the period

2016 - 2020" according to Decision 4197/QD-UBND The issued decision clearly states two main plans including the Social Housing Development Plan to 2020 and the InnDevelopment Plan Social housing development plan to 2020 with the total number of apartments in 5 years is 20,000 units, total capital is 12,280 billion VND The motel development plan forecast that by 2020, the number of motels will be 20,000 establishments with 150,000 rooms According to the plan, 80% of motels will meet the minimum standards prescribed by the Government and the province by 2020.

Program analysis

2.2.1 The necessity of the program

Vietnam is gradually developing quite quickly on the momentum of economic growth in the region and in the world, leading to problems with urban development and infrastructure, especially the lack of housing for people According to the General Statistics Office, as of 2016, the total urban population is 32.6 million people (accounting for 34.6% population), in which, workers are a large force, playing an important role in the development of industry, especially the manufacturing - processing industry of the country.

Dong Nai is one of the provinces with strong development in the fields of industry and services, providing jobs and a great source of income for people Therefore, a large number of immigrants come here to find opportunities for themselves, causing a serious

7 housing shortage The lack of housing for people is likened to a "debt" of the government to workers in the area According to statistics, there are up to 400,000 workers in the province, specifically, the province has only 3,500 social housing and 1,600 housing for workers, so only a few can find housing for themselves The rest have to live in makeshift inns On average, each motel room will have 5-6 people, the area falls in the range of 12-

14 square meters, there are places where there is still a lack of sunlight and very bad living conditions Mr Cao Tien Dung - Chairman of Dong Nai Provincial People's Committee had honest sharing when going to the rescue, grasping the problem situation in the area: people had to live in rickety, lack of light inns for many months, Many…

In addition, because it is not possible to rent or buy social housing, workers have to rent accommodation to stay Most of the hostels lack living space and living conditions, so it is easy to spread diseases This emphasis is on SARS-COV-2, which caused an outbreak and difficult to control Recently, because of the serious epidemic situation and no income during a long period of job loss due to social distancing, many workers have chosen to "leave the city to return to their hometown", causing especially serious impacts to the context of the country's economy, especially the processing and export industries.

Therefore, the authorized levels and leaders in Dong Nai province need to quickly step up measures to soon implement the social housing project for officials, employees, employees, people have difficult circumstances… fully, in accordance with the criteria, items and decisions set forth by the State.

At the issues raised, the ultimate goal is still to serve the people and develop the country Understanding that, Dong Nai province has set the implementation goal for this project towards the interests of the people above all, specifically:

Regarding the demand for social housing in the area:

According to the data on the Department of Construction of Dong Nai province recorded through the implementation of census surveys in the province, especially in industrial - export processing zones, showing a relatively high housing demand From

2016 to 2020, the demand of working people for housing increases from 164,000 people to 190 thousand people According to predictions, this number will continue to increase in the future.

Purpose of building social housing project:

The development of social housing is also a strategy to encourage individuals to settle down and stay in the area in order to engage in productive activities, as well as to stay with the province in general and enterprises in particular Furthermore, the social housing project, which prioritizes the use of state resources, intends to focus on the construction of state-owned social housing for rent or sale in order to entice private investors (individuals, organizations) to help build and finish the program.

The goal is set out in the Resolution No 117/2014/NQ-HDND of the Provincial People's Council on July 11, 2014 on adjusting the Resolution 114/2008/NQ-HDND of the Provincial People's Council on the Housing Development Program in Dong Nai province until 2010 and orientation to 2020; Decision 4197/QD-UBND dated December

8, 2016 of the Provincial People's Committee approving the social housing development plan in Dong Nai province in the 2016-2020 period as follows: in the period 2014-2020, 21,500 houses will be built in society; Specifically, from 2014-2015 to build 1,500 apartments and from 2016 to 2020 to build 20,000 apartments.

With the current goal, it is necessary to determine that social housing development is not only a form of business, but also an activity in which enterprises show their interest,share with the state, in developing problems social security issue Therefore, the State needs to be responsible for supporting investment enterprises in terms of land funds, loans and contract procedures to shorten investment processes and procedures, thus attracting more businesses to participate into this field.

Market failure in Dong Nai housing development

The first market failure is that the real estate and specifically the housing is imperfect competition market.

Accompanying the development of Dong Nai urban area is the formation of new residential areas with a variety of housing types to meet the needs and abilities of all classes of residents Aside from the architecture, the house's value will be determined by the value of the land as well as the infrastructure or living environment in which it is situated As can be seen from the above, this is a market with a wide range of products.

A series of large projects on technological infrastructure have also been implemented as a result of the industrial park's advantage, making the land here a favorite location for many investors in recent years A string of transactions including the purchasing, selling, and transferring of projects has sparked a land and housing craze, driving up the cost of owning a home for consumers In addition, due to the value attached to the land, the housing supply will be constrained as the population grows, but the land area will remain fixed Finally, there is poor liquidity due to strict state management, so the transaction process is time-consuming.

The housing market, based on the aforementioned considerations, is an imperfectly competitive market Although this market has the potential to generate a lot of profit for businesses, it also has a lot of barriers to entry Furthermore, the fact that prices can readily alter in response to market fluctuations makes it difficult for people with low financial resources to pay.

The housing market is one of the markets where there is often asymmetric information for buyers because many people still do not understand the legal issues in transactions In recent years, Dong Nai is often mentioned with many "ghost projects", ranging from partitioning agricultural land into lots to selling to people in places where migrant workers abound These are the people who are easily duped and robbed of property because they have little knowledge of the issue of converting residential land in the area, and they simply buy because it is reasonable The effects of reverse selection

10 occurred at that time, causing them to become embroiled in legal issues after constructing residences.

Housing has a great contribution to the regeneration of society's labor force, a good place to live will promote the development of comprehensive health for the owner. Employees have had full health and attention for their work since then, resulting in positive externalities for businesses and society as a whole On the other hand, having to live in temporary, hazardous housing puts the owner to several hazards such as health and security issues, resulting in a reduction in the quality of labor.

Images of a sequence of residences beside rivers, canals, and canals in big cities are probably familiar to us The presence of these houses not only detracts from the city's aesthetic appeal but also has health & security implications for both residents and the community As previously stated, the problem of building houses on agricultural land has placed a significant strain on land management in Dong Nai These agricultural land parcels eventually become unplanned residential neighborhoods, resulting in a slew of negative implications for the environment and the real estate market, as well as having a significant impact on local construction plans.

An incomplete market, according to the textbook "Economics of the Public Sector," is one in which the market "fails to offer an item or service despite the cost of providing it being less than what individuals are willing to pay" Like many other developing cities, the housing market in Dong Nai is showing signs of a supply-demand mismatch, with high-end housing accounting for the majority of projects Meanwhile, affordable housing and social housing projects for middle- income, and low-income people, as well as immigrants, are severely inadequate Because, in terms of economics, housing projects for the aforementioned subjects provide lower profits (profit rates must not exceed 10%), despite the fact that the investment procedure is similar to that of other commercial home projects The limited benefits make investors often uninterested in

11 these ventures but still focus on high-end products, causing the market to develop unbalanced and unsustainable.

Government interventions

Housing policy is seen as government action to realize housing goals These goals include improving housing quality or addressing homelessness problems Housing policy is a specific form of social policy with the objective of ensuring that low-income people in society have housing to integrate with the community, to reproduce labor power and participate in social activities actively participate in socio-economic development activities.

In the current period, housing is considered a social welfare rather than a common good The government has issued a lot of housing policies with a national housing program to build and provide housing for people working in the urban public sector. Government housing policy has provided subsidized rental apartments with minimum standards and low rents During the renovation process, the state encourages many economic sectors to participate in the housing construction and development process The State has had many policies on housing improvement, housing support policies for different social groups, showing special interest in providing accommodation for people, step by step creating favorable conditions for people to live in For people, especially those facing many difficulties in society.

To solve housing for some subjects with housing difficulties in Dong Nai province, Decision No 4197/QD-UBND of the People's Committee of Dong Nai province on "Promulgation of a plan for communal housing development Dong Nai Provincial Association for the period 2016 - 2020" stated:

Firstly , the Department of Construction inspects and appraises the quality of social housing projects and issues regulations on the timing of those projects, inspects, supervises and urges them to ensure the progress of the projects.

Secondly , the Department of Planning and Investment and Development shall make investment and loan plans according to regulations for social housing projects based

12 on the actual situation, implement preferential policies for social housing projects. economic sectors participating in investment in social housing projects in the province.

Third , the Department of Natural Resources and Environment studies and proposes a mechanism to exploit the potential of land to generate revenue for social housing development and organizes a review to supplement the land fund for social housing projects, praise compensation, support and resettlement plans, create a clean land fund to carry out social housing construction projects.

Fourth , the State Bank of Vietnam's provincial branch implements lending policies to support housing in order to create conditions for the development of the social housing market Disseminating, propagating and implementing regulations related to social housing lending for banks, credit institutions and people in the province.

In addition, some specific regulations for subjects with housing difficulties:

Improve the province's mechanisms and policies to be consistent with the provisions of the law, in order to encourage and support enterprises to invest in building social housing for their workers and people If the enterprise invests in building social housing for workers, the employees of the enterprise need to carry out the investigation, survey and assessment of the housing needs of the workers and employees in order to make recommendations construction plan, investment plan on social infrastructure, serving the people's life.

Encourage households near the industrial park to invest in building boarding houses for workers and workers to rent in order to partially meet the housing needs of workers and workers, and at the same time reduce pressure on employees businesses and localities in developing social housing for workers.

Encourage training institutions to directly invest and call on economic sectors to participate in implementing social housing projects for students to rent Support through

13 investment in infrastructure connecting with schools, training institutions, social housing areas for students

Evaluate the effectiveness of the program

2.5.1 The overall evaluation of the program's outcomes

According to the proposed roadmap, by the end of 2016 in Dong Nai, 556 social housing houses will have been built In 2017, the province will build 901 apartments, in

2018 it will be 1,333 apartments, in 2019 it will be 4,629 units, and in 2020 it will build 12,581 social housing houses However, according to the Dong Nai Department of Construction, in 2016–2018, only 1,313 units were completed.

According to Decision 4197/QD-UBND dated December 8, 2016 of the Provincial People's Committee, approving the social housing development plan in Dong Nai province in the period 2016-2020, to build 20,000 social houses in the period 2016-2020. Then, it will build 17,815 houses for workers and other social objects, while also building 2,185 dorm rooms for students According to the aggregated data from the Ministry of Construction, the demand for social housing in Dong Nai province in the period 2011–

2020 was 36,700 units, which shows that the demand for social housing is very high

In fact, during the implementation of the program, there were a number of difficulties and obstacles, so many projects were delayed, some projects were withdrawn, some projects were canceled or converted to other projects For other purposes, the number of social houses built, completed, and put into use is very modest, with just over 3,000 units, reaching about 14% of the set target (from 2014 to 2020) It is considered impossible to fulfill the target of the Provincial People's Council's Resolution on social housing development.

Picture1 The graphic shows the number of social projects that have been withdrawn and are still valid in the province in the period 2014-2020

(Info: Huong Giang-Graphics: Hai Quan)

Of the 38 valid social housing projects in the 2014-2020 period, only eight have been completed and put into operation The completed projects are concentrated in 3 localities, namely Bien Hoa City, Nhon Trach District, and Cam My District In particular, Bien Hoa City has four projects, namely: 4 apartment blocks in Quang Vinh Ward, invested by Dong Nai Housing Trading Joint Stock Company; a social housing project in Buu Long Ward, implemented by Xuan Mai Construction and Investment Joint Stock Company; a housing project for low-income people in Tam Hoa Ward, invested by Son

An Urban Development and Investment Joint Stock Company; and a social housing project in Tam Hoa Ward, whose investor is Cuong Thuan IDICO Development Investment Joint Stock Company H.Nhon Trach has 3 completed projects: social housing for employees of Hyosung Vietnam Co., Ltd invested by Hyosung Vietnam Co., Ltd; worker housing project built by IDICO Industrial Park and Urban Development One Member Company Limited; social housing project in Phuoc Thanh De Tam Joint Stock Company has invested in a commune Cam My has 1 social housing project implemented by Asia Private Enterprise.

Concerning the source of capital

In fact, budget resources are limited and are unable to meet the initial plan to build 20,000 social housing houses as planned 12,280 billion VND On the other hand, because the government has suspended the preferential loan of VND 30,000 billion to build and buy houses since 2016, many companies have implemented projects very slowly, and home buyers in communes associations have to borrow commercial loans at an interest rate of 9%-11% per year, leading to the price of social housing in 2020 reaching up to VND 20 million/m2 in some places, up 33% compared to 2016 IDICO Town and Industrial Park (IDICO-URBIZ) is continuing to implement a housing project for workers in Dong Nai province's Nhon Trach district However, a representative of this business said that it is facing many barriers, especially accessing preferential loans for both businesses and customers Specifically, after the preferential capital from the 30,000 billion package expired on June 30, 2016, home sales fell precipitously Since the beginning of 2017, the average number of monthly sales has been 1-2 units.

People with meritorious service to the revolution; poor and near-poor households in rural areas; households affected by natural disasters; low-income people in urban areas; workers working inside and outside industrial zones; armed forces; officials and employees; students; and households and individuals whose land has been recovered are among those eligible for social housing In addition, people accessing social housing must also satisfy 3 additional conditions, which are housing difficulties, residence conditions, and low-income conditions With the scoring criteria to consider the order of priority for buy/lease-purchase social housing, it seems that the priority is also given to those who are working in state agencies, working in industrial parks, or people with meritorious services, with a maximum score of 30–40 points, while low-income and near-poor subjects can only score a maximum of 20 points It seems that some other emerging social groups in society receive less attention With the current approach, those who are not in the priority category will have little chance to improve their housing situation.

2.5.2 Evaluation of economic and social efficiency

Housing plays a great role in the development of a person It is the cradle for the development of a just and civilized society With the orientation of socio-economic development in the direction of industrialization and modernization on the basis of thoroughly promoting internal factors and effectively combining external factors, Dong Nai province always actively grasps opportunities to improve the economic potential and social position of the province.

The province's adoption of the social housing project has initially aided Dong Nai's potential and economic position, specifically:

As of 2018, the province's economy continued to grow: the index (GRDP) reached 8.1%, and the average GRDP reached $4,226 The proportion of the economic structure gradually increased Notably, the index of industrial production (IIP) increased by about 9%, while the processing and manufacturing industries increased by 9.16%.

Dong Nai province also has stronger development (32 industrial parks have been established, 31 zones have an occupancy rate of 77%, and 23 industrial clusters have an occupancy rate of 40%) The ability to mobilize investment capital for social development has reached VND 90,000 billion, an increase of about 10% over the same period; attracting domestic investment reached over VND 27,800 billion, reaching 278.5% of the year plan; foreign direct investment (FDI) reached over 1,800 million USD These are signs that the province has performed well in its leadership in implementing social housing for people In combination with other projects, the stability of accommodation has basically stabilized the hearts of the people so that they can settle down and focus on production and development, bringing a positive start to the face of the locality To stimulate the manufacturing economy to develop, it is necessary to have a workforce willing to work, showing that the labor market and the economy are positively affecting each other.

By the end of 2019, the appearance of the COVID-19 pandemic had had a great impact The economy was seriously affected and many businesses and factories were also bankrupt, resulting in job losses and house pressure Housing causes many people to leave the city Many investors and businesses are also not really interested in social housing construction projects because the profit they receive is less than 20% (the cost of commercial land and other utilities and other costs) compared with reality; processes and regulations as well as administrative procedures are complicated and take a long time to process, which causes a double impact on economic development.

People who have to leave their hometown to work as hired laborers choose Dong Nai as their second hometown because they just want to have a stable place to live In the same year (2018), areas such as culture, society, policy, and social security were also paid close attention to, continued to be implemented synchronously, and had positive results such as: creating jobs for over 87,000 people; the health insurance premium rate has reached over 84.5%; reducing the rate of poor households by 0.2%; reducing the rate of near-poor households by 0.11%; national defense, political security, and social order and safety are more guaranteed; health care for the people and education and training universalization are carried out in combination with policies towards people with meritorious services; people with difficult circumstances are given more attention; actively building a strong party, political system, and government With these positive achievements, the province will continue to take measures to attract and retain workers for businesses in the province, aiming to improve economic production efficiency and raise the position of Dong Nai.

According to a report by the Dong Nai province Department of Construction, the development of social housing in Dong Nai is still limited due to difficulties in arranging land funds, loan support, and administrative procedures:

Firstly , the conditions and procedures for making social housing are currently quite complicated, and general guidelines have not been issued for businesses to base

18 their implementation on that implementation The legal procedures to implement social housing projects by real estate enterprises (real estate) are currently facing many difficulties.

Secondly, of the capital to build social housing in the above period, the capital from the social housing development budget alone accounted for more than 775 billion VND The remaining capital is called for investment in organizations and economic sectors in the form of investment - transfer (BT) and use the land fund to pay for investment capital This shows that much dependence on the state budget in the development of social housing funds.

Thirdly , the balance of budget capital for social housing development, particularly capital to support the poor, the impoverished, and the poor, still needs banking institutions to support this housing development capital Low-interest loans to buy, rent, and rent out social housing, as well as loans to enterprises to invest in the construction of social housing On the other hand, advocating for investment in social housing confronts numerous challenges because social housing buyers are primarily employees with little financial resources who are unable to obtain favorable loans to purchase communal houses As a result, several large-scale social housing projects, particularly those created in the form of rolling stock, are currently in stock, causing a delay in investment development.

CONCLUSIONS & RECOMMENDATIONS

Land solutions and house model regulations

3.1.1 Recommendations of Tran Ngoc Thanh Quyen

One of the two main obstacles impeding the development of the housing market in Dong Nai and other parts of the country is land As a result, I think the following suggestions will assist the government in establishing a framework for more efficient land management.

The first is the issue of rising land costs as a result of speculation, which limits the ability of the majority of ordinary workers to own a home This is a widespread problem in both developed and developing cities This problem arises as a result of a lack of knowledge or transparency in the market It leads to a limited understanding of market trends in both investors and consumers and the government's capacity to construct an efficient social housing program As a result, the government must create a more transparent market information system This system can be built using a combination of citizen surveys, public and private construction companies, local authority market reports, and information from relevant Ministries Following that, a data base on local land conditions, market pricing, supply and demand, information on current housing programs, and so on Investors will have a foundation on which to assess risks and cut costs throughout project implementation For customers, knowing how to find suitable homes saves opportunity costs For public enterprises, set responsibility for transparency of public spending Since then, the government has become more flexible once it comes to housing rules.

The second issue concerns the present land tax rate, which many industry professionals believe is improper since it promotes speculation As a result, in order to counteract housing and land speculation, tax rates must be rebuilt Those who sell or transfer houses and land within a short period of time after purchasing must pay high taxes, while those who can prove that the need to sell or transfer is reasonable can pay standard tax rates.

The third issue is that social housing projects now lack timing regulations, causing projects to be delayed and resources to be wasted As a result, the state must set a clear

20 timeframe for investors to complete the project The implementation schedule can be extended if there is a compelling reason, but it must not exceed 24 months (recommended time is based on Clause 4, Article 41, Investment Law No 61/2020/QH14) If the construction is not completed within the stated time frame, the land will be repossessed, and also the construction permission This recommendation attempts to strengthen investor responsibility while also increasing the efficiency of land usage and limiting land price increases.

Finally , the regulation requiring commercial housing projects to set aside 20% of their land for social housing development has had several issues for years Many investors avoid paying clean land or building in areas that are unsuitable for traffic and social infrastructure, making it difficult for workers Furthermore, it is still debatable whether high-value land is suitable for the construction of social housing As a result, the state must be more flexible in its policies regarding the allocation of land funds for social housing, which can be integrated or assigned to local governments to evaluate the right land fund or plan for each project in order to avoid waste power.

3.1.2 Recommendations of Luong Thi Ngan

Firstly , pay attention to updating and clearly guiding all construction plans, master plans, land use plans, policies, etc At the same time, increase publicity and transparency in rights auction information using land; projects on land acquisition due to violations of the law The forms of publicity varied from announcements at meetings, on mass media, to postings at the headquarters Since then, it has created favorable conditions for people and businesses to grasp information on the activities of state agencies and supervise the implementation and prevention of corruption and negativity.

Secondly , use clean land funds (public land) calling for investment in the form of

PPP to develop a model of rental housing under the supervision of the State.

Thirdly , the state needs to allow the increase in construction surface and not be rigid in regulations on house design, allowing investors to design house samples on the basis of market research, business experience, and targeted corporate customer segments; allowing investors to decide on their own the number of floors to build in accordance with

21 the actual conditions of the project area to improve the land use coefficient, in order to reduce the land value of the apartment and take advantage of organic resources, such as land.

Recommendations on capital and administrative procedures

3.2.1 Recommendations of Vo Thi Minh Hieu

The state must evaluate legislation and legal processes when handling and implementing investment projects in order to encourage enterprises to actively participate in social housing building and share responsibilities with the government a project for social housing To avoid disrupting and interfering with the implementation process, administrative procedures and project approval times must be shortened Furthermore, the state must establish credit schemes to assist enterprises in obtaining favorable loans to invest in the construction of social housing

Workers going to Dong Nai to live and build the economy will increase in the future as the infrastructure in Dong Nai becomes more innovative, and the need for housing will rise as a result As a result, timely coordination between provincial and state governments is required to entice contractors to become more active participants in the national responsibility sharing process, assuring a sufficient number of social housing units for competent workers poor income and challenging situations are exacerbated by: expanding investment funds and giving priority to businesses participating in the construction process to borrow capital for implementation, provided that if the enterprise intends to prolong the investment period, During the implementation period, Dong Nai province should consider withdrawing the project and handing it over to another enterprise to avoid wasting land and resources; Prioritize the implementation of the program to construct social housing in districts, districts, and towns where people continue to confront significant challenges…

3.2.2 Recommendations of Nguyen Ngoc Kim Ngan

To promote the implementation of social housing development plans in Dong Nai province in terms of capital, the following solutions can be implemented:

Firstly , the social housing area should be designed with a moderate area to ensure the solvency of the people, research the design carefully to ensure high flexibility, and meet the diverse needs of the residents family.

Secondly, it is necessary to build credit funds related to social housing development, in order to solve financial problems for social housing projects as well as assist people in paying A credit fund may include two activities: banking credit activities and activities serving the development of social housing.

Currently, a number of countries around the world have established Housing Savings Funds to support taxes, fees, loans for investors to build social housing, credit support for tenants, and purchase of social housing festival This is an experience that Vietnam can learn from countries around the world, in which the Social Housing Savings Fund should not be established separately but appear as a small branch in a large common fund with many purposes For purposes such as insurance, securities investment, etc. Through the establishment of a Housing Savings Fund, people with low incomes will be proactive and responsible in gradually improving their living conditions, connecting responsibility of society and community.

With several industrial parks and millions of workers from all over the world living and working in Dong Nai province, demand for social housing makes up a significant share of overall housing demand The growth of social housing is unavoidable and predictable, necessitating a top-down approach that prioritizes quick building and good management The social housing development program in Dong Nai province for 2016-

2020 is part of the province's low-income housing strategy as well as its social security policy Despite the fact that the program has finished a number of social housing projects and is in use, it still has numerous limits, necessitating a lot of attention and innovation from the state in the future The next stage makes the most of the objectives put out

Mr Nguyen Thanh Nghi, Minister of Construction, claims that Dong Nai has made several efforts in the area's administration and construction The province has focused on the development of urban projects and social housing for workers and low-income individuals, although only around 10% of the aim has been met There are still certain constraints in Dong Nai province that must be overcome The province must devote more attention to social housing in order to expedite project completion, provide low-income individuals with products for sale or rent, and improve urban quality At the same time, construction planning, spatial planning, rural planning, infrastructural framework, and landscape space management and development must all be considered Dong Nai has also been designated as a pilot province for smart cities, therefore it is critical to concentrate on developing and enhancing the lives of the people in the area.

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