TYLA: Accessing and Owning Social Housing in Hanoi Today

Author's name: Nguyen Thi Thanh Thuy

Thesis title:Access to and ownership of social housing in Hanoi today.

The field of study for this dissertation:Sociology

Major: Sociology Code: 62 31 03 01

Name of the postgraduate training institution:University of Social Sciences and Humanities - Vietnam National University, Hanoi.

1. Purpose and scope of the thesis

1.1 Research Objectives:

This study analyzes the current state of access to information and the process of owning and using social housing for low-income residents, as well as the practical barriers to this process. Based on this analysis, it proposes several policy recommendations and solutions to enhance access to social housing in Hanoi today.

1.2 Research subjects:

Access to and ownership of social housing in Hanoi today

2. Research methods used

The thesis utilized the following methods: document analysis; opinion survey; in-depth interview; and methods for processing information and reporting research results.

3. Main results and conclusions

3.1. Main results

- An overview of previous research studies is needed to obtain a relatively complete and valuable source of theoretical and practical information for research on access to and ownership of social housing in Hanoi.

- Present the theoretical basis, research methods, and an overview of the research area.

- Analyzing the current situation regarding access to social housing policies in Hanoi.

- Analyzing the current situation of ownership and use of social housing in Hanoi.

- Proposing several solutions to enhance access to and ownership of social housing in Hanoi today.

3.2. Conclusion

- Social housing policies, over the years, have shown adjustments to expand and increase access to and ownership of housing for low-income earners. The price and size of social housing are suitable for the needs of low-income urban residents. Most social housing projects are implemented on schedule due to the control of state management agencies, ensuring housing for residents within a suitable timeframe.

- Financial support policies for social housing buyers are a significant advantage for this housing segment in the market. The loan amount for purchasing a house cannot exceed 80% of the social housing unit's value, with a minimum repayment period of 15 years. The interest rate, loan amount, and loan term are determined by the lending institution depending on the buyer's ability to pay. Furthermore, preferential policies for social housing developers are increasingly expanding, providing more opportunities for low-income earners to own homes.

- The main difficulties faced by buyers of social housing are access to information, barriers to verifying housing status, household registration issues, scoring criteria, and access to loans. These inadequacies in accessing social housing give some groups, such as civil servants, public employees, and those working in the police and military, an advantage, while the poor, near-poor, and those working in the informal sector face greater difficulties in accessing and owning social housing.

- The lease-to-own model is currently more advantageous than the sale model because it reduces the burden of borrowing on homebuyers, especially from banks, with interest rates ranging from a minimum of 5% to a maximum of 11%. However, the number of apartments accessible to homebuyers through this model is still limited and has not yet met the demand for social housing.

- During the use of social housing, people still encounter some shortcomings in accessing basic social services because most social housing areas are located quite far from the city center, and the infrastructure and social services are not yet synchronized. In addition, the quality of social housing is not yet as desired; maintenance and repairs are still necessary, and the density of apartments on each floor is a drawback. However, due to the small apartment size, reasonable prices, and preferential loans with low interest rates, social housing remains the choice of many low-income people.

- High levels of community cohesion and a friendly social environment are prominent characteristics of social housing areas. Similarities in circumstances, backgrounds, and economic conditions foster strong bonds, creating a healthy, friendly social environment where residents support each other in times of difficulty. This is also one of the factors that encourages them to live long-term in their housing complex.

ABSTRACT OF DOCTORAL THESIS

The author's nameNguyen Thi Thanh Thuy

Thesis title: Access to and ownership of social housing in Hanoi at present

Scientific branch of the thesisSociology

Major:Sociology Code: 62310301

The name of postgraduate training institution: University of Social Sciences and Humanities, Vietnam National University, Hanoi

1. Purpose and objectives:

1.1 Research objectives:

To analyze real situation of access to information and the process of ownership and use of social housing of low-income residents and barriers to the process. Based on the findings, recommendations on policies and solutions to increase accessibility to social housing in Hanoi at present.

1.2 Research object:

Accessibility to social housing schemes in Hanoi at present

2. Research methodology

The following methodologies are used: literature analysis, in-depth interviews and data processing and reporting.

3. Major results and conclusion

3.1. Major results

- Review of past studies for reference in theory and practice to help the study Access to and ownership of social housing in Hanoi at present.

- Present theories, methodologies and research sites

- Analyze the state of accessibility to social housing schemes in Hanoi at present.

- Analyze the state of ownership and use of social housing in Hanoi at present.

- Make recommendations on some solutions to further improve accessibility and ownership of social housing schemes in Hanoi.

3.2. Conclusion

- Social housing policies, through different periods of time, have been readjusted and expanded to increase opportunities for low-income earners to have access to and ownership of houses. The housing price and accommodation are rather suitable to the needs of low-income residents in urban areas. Most social housing schemes have been implemented on time with the monitoring and supervision of State management agencies, thus providing housing spaces for low-income earners on time.

- The preferential credit policy in support of social housing buyers is a priority helping buyers in this housing market segment. The loan for housing purchase is under 80% of the total value of an apartment with 15 years repayment in installments. The amount of loan, the interest rate and the duration are decided by the credit institutions based on repayment capacity of the social housing buyers. In addition, this preferential credit policy is now also expanding to social housing investors, thus providing more opportunities to low-income earners to own apartments.

- The key difficulties faced by social housing buyers include access to information, barriers to verification of housing status, residential registration, criteria and access to credit loans. Constraints in access to social housing make some groups of people including civil servants, State employees, police and military personnel have more advantages while poor and near poor people and informal workers face more difficulties in access to and ownership of social housing.

- The form of apartment rent is preferred to apartment purchase as it puts less credit pressure on the buyers, particularly with bank interest rates ranging from 5% to 11%. However, the number of apartments for lease is limited, not meeting the needs of residents.

- During using social housing, the users face some difficulties in having access located to basic social services, as most social housing apartment buildings are far from centers, their physical infrastructure and social service systems are not synchronous. Alongside with this, the quality of social housing is not as expected by the users who have to conduct frequent maintenance and repairs. This is one of the dangers of social housing schemes. However, due to small space of apartments with reasonable price and preferential credit loans, social housing remains a choice for many low-income earners.

- High community cohesion and friendly social environment are typical characteristics in social housing areas. The similarities in circumstances, original status and economic conditions help the residents be close to each other, creating a healthy, friendly and mutual support. environment This is one of the factors helping residents in the social housing areas to stay longer there.