Research on assigning investors to social housing projects without going through bidding

CAO NGUYÊN |

The pilot assignment of social housing investors without bidding will shorten the project implementation time to at least 200 days.

The Ministry of Justice is reviewing the draft Resolution of the National Assembly on piloting a number of specific mechanisms and policies for social housing development, including the proposal of the Ministry of Construction on piloting the assignment of social housing investors without bidding.

The Ministry of Construction plans to reduce the implementation of assigning investors without bidding by about 200 days to 241 days, corresponding to 70-100% of the bidding time for selecting investors.

Mr. Chu Van Hai - Head of the Department of Social Housing Development and Management, Department of Housing and Real Estate Market Management (Ministry of Construction) - said that regulations related to bidding to select investors will have to go through many administrative procedures, taking from 6 to 12 months.

In fact, in recent times, the Ministry of Construction has received many feedbacks and recommendations from large enterprises in the field of social housing development. Accordingly, many businesses have reflected that currently, the regulations on procedures and time to develop a social housing project are quite large.

According to estimates, in cases where social housing projects have approved construction planning, have housing development programs and plans and are included in the list and land use plans of the locality, the implementation time is in order from the investment policy approval step to the selection and signing of the project contract with the investor, which is about 300 days.

In Ho Chi Minh City, in case of flexible implementation of parallel procedures and application of the minimum implementation time according to regulations, the total time for bidding and selecting investors in case of invitation of interest from 2 investors meeting the requirements is over 200 days.

In addition, some pilot policies are proposed such as the provincial People's Committee assigning investors of social housing projects without bidding to select investors based on the proposal of the professional agency, the Department of Construction.

The Ministry of National Defense and the Ministry of Public Security assigned investors to build housing projects for armed forces without bidding. The Vietnam General Confederation of Labor, which implemented social housing projects using Trade Union financial resources, also did not go through bidding to select investors.

The selected investors must fulfill their rights and obligations according to the provisions of the law on land, housing, real estate business, investment and related regulations.

The Ministry of Construction also proposed to remove the step of establishing, appraising, and approving detailed planning tasks; remove the procedure for appraising feasibility study reports of specialized agencies on construction and integrate the content of the appraisal of feasibility study reports into the construction design appraisal procedures after the basic design or construction licensing.

Dr. Can Van Luc, an economic expert, member of the National Financial and Monetary Policy Advisory Council - said that most social housing projects still have to go through a long bidding process, along with the document approval process that can take up to 4-5 years. This causes many difficulties for businesses, even with good investment will.

"To remove bottlenecks, the Government is studying a plan to designate bids for enterprises that meet all criteria to speed up implementation.

This is considered an important change, helping to shorten the project implementation time. However, to ensure transparency, ministries and branches need to build a specific set of criteria to avoid taking advantage of policies" - Dr. Can Van Luc emphasized.

CAO NGUYÊN
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