PhD student chose the study: State management of investment in housing development in urban areas in Vietnam

MINISTRY OF EDUCATION
AND TRAINING

MINISTRY OF PLANNING
AND INVESTMENT

CENTRAL INSTITUTE FOR ECONOMIC MANAGEMENT
---*---

NGUYEN HONG PHU

STATE MANAGEMENT OVER DEVELOPMENT
INVESTMENT HOUSES IN URBAN AREA IN VIETNAM

Major : Economic management
Code: 9.31.01.10

SUMMARY OF DOCTORAL THESIS IN ECONOMICS

Hanoi, 2018


The thesis has been completed at: Central Institute for Economic
Management

Supervisor:
1. Assoc.Prof.,Dr. Hoang Van Cuong
2. Dr. Tran Hong Mai

Reviewer 1: Assoc.Prof.,Dr. Vu Thi Minh
Reviewer 2: Assoc.Prof.,Dr. Doan Duong Hai

Reviewer 3: Assoc.Prof.,Dr. Nguyen Dinh Tho

The thesis will protect before the Council of thesis-level dissertation
meeting at the Central Institute for Economic Management.... day ...
month ... year 2019

The thesis can be found at the library:
- Library of the Central Institute for Economic Management
- National Library, Hanoi


1
INTRODUCTION
1. Reason for choosing thesis topic
Housing development is one of the important contents of the socio-economic
development policy of the country, ensuring the essential needs of the people. The
State shall promulgate policies to promote the housing market and at the same time
adopt policies to support housing for social policy beneficiaries, low-income
earners and poor people who have difficulties in housing. contributing to political
stability, ensuring social security and urban and rural development towards
civilization and modernity.
According to the National Housing Development Strategy up to 2020 and
Vision to 2030 approved by the Prime Minister in Decision No. 2127 / QD-TTg
dated 30 November 2011 and set target area of average housing in urban area
reached 29m2 / floor / person. With the urbanization rate expected to reach 40%,
the urban population is increasing, the demand for housing for urban residents
increasingly requires the mobilization of all resources to implement housing
projects. urban areas nationwide [14].
Starting from these issues, PhD student chose the study "State management
of investment in housing development in urban areas in Vietnam" as a thesis

topic of doctoral degree, majoring in economic management. systematize, clarify
and supplement the rationale; to study the experiences of State management over
urban housing development investment of some countries in the world, draw
lessons for Vietnam; study the state management of investment in housing
development in urban areas in Vietnam; On that basis, some feasible solutions are
proposed to improve the state management of investment in housing development
in urban areas in Vietnam.
2. An overview of published researches related to state management of urban
housing development investment
2.1. Study abroad
Investment in housing development in urban areas is always the area of
interest. In the world there are many researches on content related to management
of housing investment with different perspectives, such as: (1) Arthur C. Nelson,
Casey J. Dawkins (2002), "The Relationship Between Growth and Ability to Buy a
Home" at the University of Maryland; (2) Muyiwa Elijah Agunbiade (9/2012)
"Land Management" University of Melbourne, Melbourne, Victoria3010,
Australia; (3) Terencem.Milstead (2008), "Urban Development in Post-Soviet",
Florida State University of Social Sciences; (4) Terencem.Milstead (August 2009),
report "National Urban Development Housing Framework (2009-2016)" at the
Philippine Institute for Development Studies The (5) Olotuah. POND. and
Bobadoye (2009) on "Sustainable Housing for the Urban Poor," Department of
Architecture, Akure University of Technology, Nigeria;
2.2. Research in the country
Typical research projects related to research topics include: (1) Nguyen Van
Hoang (2009), "Improving the management capacity of the urban housing market”
(2) Pham Ngoc Tuan (2015), "Development of new urban areas in Ho Chi Minh
City towards sustainable development" (3) Nguyen Pham Quang Tu (2013), "
Survey and assess the situation and efficiency of investment in new urban areas, on

2
that basis proposed mechanisms and policies to improve the efficiency of
management of investment projects for development of new urban areas" Project
Economic Department, Institute of Construction Economics, Ministry of
Construction; (4) Dinh Trong Thang (2014), "Theoretical and practical basis for
development of urban housing investment funds in Vietnam", (5) Do Hau &
Nguyen Dinh Bong (2011), "Management of land and urban real estate"; (6)
Nguyen Duong Danh (2011), "Vietnam Urban Development Strategy 20112050";(7) Pham Ngoc Tru (2015), the theme "Central city with socio-economic
development in the Red River Delta", PhD thesis, Development Strategy Institute,
Ministry of Planning and Investment (8) Pham Van Binh (2015), theme "Housing
tax policy in Vietnam", PhD thesis, NEU; (9) Nguyen Quang (2009), "Study of
housing sector profiles", UN-Habitat workshop on housing development in
Vietnam.
2.3. Some issues of the thesis have not been published research works solve
First of all, the above-mentioned research works stop at evaluating the real
situation and experience in investment in housing development in general and
urban houses in particular. Specialized in the contents of State management of
housing investment in urban areas in Vietnam today.
Secondly, conditions for international environmental and environment
integration as well as new trends of state management of urban housing
development have changed with the development of the economy. world, so the
effects of state management on housing development in urban areas should also be
considered in the new conditions.
Thirdly, the above research has not mentioned in depth the issues of state
management theory for investment in housing development in urban areas such as
concepts, objectives, principles ...
2.4. Some thesis issues will focus research and solve
First: The thesis defines the basic contents to approach the situation and
assess the state management of investment in housing development in urban areas
in Vietnam;

Second: Situational analysis, factors affecting the state management of
investment in housing development in urban areas in time;
Third: Analyze, draw lessons learned from foreign experiences on state
management of housing development projects in urban areas for reference to
Vietnam;
Fourth: Propose a system of some state management solutions are scientific
and feasible, propose amendments and supplements to a number of laws, some
standards and related standards.
3. Objectives and research questions of the dissertation
* Research objectives:
To build theoretical bases, analyze the current situation, propose directions
and possible solutions to enhance the efficiency and effectiveness of the state
management on investment in housing development in urban centers in Vietnam's
urban centers. .
* Specific objectives:


3
- Systematic and theoretical framework to clarify the basis of State
management theory of investment in housing development in urban areas.
+ Clarifying concepts and contents of state management on investment in
housing development in urban areas;
+ Building models and theoretical framework for management in state
management of investment in housing development in urban areas in Vietnam;
+ Develop criteria for assessing effectiveness of state management of
investment in housing development in urban areas in Vietnam.
- Analyze and evaluate the state of the state management of investment in
housing development in urban areas in Vietnam, such as:
+ Analysis and assessment of the current situation through the seven basic
content built by the author in the theoretical part of the state management of

investment in housing development in urban areas in Vietnam last time, to find
The advantages, limitations, causes and problems that need to be resolved;
+ Analyzing factors influencing, investigating, surveying and evaluating the
effectiveness and effectiveness of State management of housing development
investment according to criteria;
+ Study international experiences to draw lessons, as well as point out the
advantages, limitations and causes in the state management of investment in
housing development in urban areas in Vietnam.
- To propose some scientific and feasible solutions to improve the state
management of investment in housing development in urban areas in Vietnam in
the coming time.
4. Subjects and scope of research
4.1. Research subjects
State management of investment in housing development in urban areas
includes the implementation of the legal system and policies; strategic planning,
construction and management of urban housing development plans; the
elaboration, promulgation and management of technical standards and procedures
and norms for investment in urban housing development; management of
investment capital and the operation of the real estate market.
4.2. Research scope
a. Range of study on time
The thesis on the state management of urban housing development projects in
Vietnam from 2003 to 2016.
b. Range of space
The thesis on urban development investment projects was collected through
surveys in Hanoi and Ho Chi Minh City.
c. Scope of research content
The thesis limits the study of seven groups of contents of State management
of housing development in urban areas including: (1) Content of State management
of strategies and planning of housing development in urban areas; (2) Content

group on construction and implementation of laws on investment in housing
development in urban areas; (3) Content of State management on the order of
investment in housing development in urban areas; (4) Content Group on State
management of standards and standards for housing construction in urban areas;


4
(5) Content of State management to invest, mobilize capital for investment in
housing development in urban areas; (6) Content of State management of housing
market in urban area; (7) Content of State management for the inspection,
examination and supervision of investment in housing development in urban areas.
d. Research duties
Research tasks of the thesis include: (1) Analysis of concepts, nature and
characteristics of SM management of urban housing development; (2) Identify the
contents of state management of housing development in urban areas in the context
of urbanization in Vietnam; (3) Assessment of state management on housing
development in urban areas in Vietnam in the period 2003-2016; assess the
strengths, limitations and causes of limitations; Analyzing the impact of the impact
factor on state management on investment in housing development in urban areas;
(4) Proposing measures to improve state management of housing development in
urban areas.
5. Approach and methodology
5.1. Approach
The dissertation approached from the perspective of the role of the state for
housing development in urban areas to study and solve the problem of state
management of investment in housing development in urban Vietnam. In it, focus
on theoretical and practical issues according to the management process including
strategic orientation, planning, policy formulation, law, administrative procedure,
waste management standards, standards, approval, inspection and supervision ...
5.2. Method of collecting and processing information and data

a. study materials
A combination of domestic and foreign studies related to research topics.
b. The method of data collection
- Primary data collection: (1) Interview with the open questionnaire about
state management on investment in housing development in urban areas; Objects
are leaders and staff working in agencies and organizations such as: Enterprises;
Departments, departments, research institutes. (2) The research was conducted
through 450 questionnaires, of which 180 questionnaires were answered by
telephone, 270 by interviewees, or by direct submissions. investigate.
- Secondary data collection: (1) Collect information from state management
agencies on the management of the sectors (construction, land, finance, planning)
in selected cities; (2) Report of enterprises investing in housing development in
urban areas; (3) collecting information on books, magazines, the Internet;
Statistical data of ministries and sectors.
c. Methods of analysis, processing and analysis of survey data
- Thesis qualitative analysis
- Thesis on quantitative analysis
- The thesis uses the expert method, consulting the scientists on the contents
related to the thesis topic.
6. Theoretical and practical meanings of topic research
i). Theoretically


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First: The thesis adds, completes, models and contributes to clarify the
theoretical framework and the state management in the field of housing investment
in urban areas in Vietnam today.
Second: Defining the basic and important contents of state management in the
field of investment in housing development in urban areas in Vietnam, including
the following contents: Formulation of investment strategy and planning housing

in urban areas; To formulate laws and policies on investment in housing
development in urban centers; State management on the implementation of
procedures; State management on standards and standards for investment in
housing development in urban centers; SML on mobilizing investment capital for
housing development in urban areas; State management of the housing market in
urban areas; State management on the inspection and examination of investment in
housing development in urban areas.
Third: The thesis defines the criteria for assessing the suitability,
effectiveness, effectiveness and sustainability of state management of urban
housing development.
Fourth: The thesis identifies two groups of factors that affect the state
management of housing development in urban areas, including: Objective group,
Subject group.
Fifth: the thesis contains a summary of studies on housing management in some
countries in the world that can serve as a practical basis to consider the application
of lessons learned in state management on housing development in urban areas in
Vietnam.
ii). Practically
The dissertation examines the situation as well as evaluates achievements,
shortcomings and limitations of state management of investment in housing
development in urban areas in Vietnam today;
The thesis has divided the basic management of state management of
investment in housing development in urban areas in Vietnam today, and
synthesized the achievements and limitations of each management group, aiming
to These achievements and shortcomings can be traced back to the analysis of the
causes and general and specific solutions for each problem group.
The research results of the thesis are the reference for further research on SM in the
field of investment in housing development in urban areas.
7. Structure of the thesis
Apart from the introduction, conclusions and recommendations, list of references,

appendices, structural thesis consists of 03 chapters.


6
CHAPTER 1. THEORY OF REASON
DEVELOPMENT INVESTMENT DEVELOPMENT HOUSE IN URBAN
AREA
1.1. Concept of housing, urban area
1.1.1. Housing, characteristics of urban housing
1.1.1.1. Concept of housing
According to housing law No. 65/2014 / QH13, housing is a building for the
purpose of living and serving the needs of living of households and individuals.
The term "housing" defined in the Housing Law includes:
- A separate dwelling house is a dwelling house built on a separate residential
land under the lawful use of an organization, a family household or an individual.
- Condominiums are houses with 2 or more floors, with many apartments,
common aisles, stairs, private ownership, common ownership and infrastructure
system for common use by households. Family, individual, organization.
- Commercial houses are houses built for sale, lease or lease-purchase
according to the market mechanism.
- Official-duty house means a dwelling house used for the subjects entitled to
stay in public-duty houses under the provisions of this Law while they are in
charge of their posts or work.
- Housing for resettlement is a dwelling house to be allocated to households
and individuals who are entitled to resettlement when the State recovers residential
land.
- Social houses are houses with support from the State for beneficiaries of
housing support policies under the provisions of this Law.
1.1.1.2. Housing characteristics
Housing features the following:

First, housing is a fixed asset that has a life expectancy depending on the structure
and materials of the product; Usually life span is from 50 to 60 years and there are
also cases of hundred years or more;
Second, housing is fixed in terms of architectural and structural shapes, as well as
equipment that is difficult to change; to renovate, upgrade, change architecture is
very difficult and expensive;
Third, the demand for housing is very diverse, depending on the preferences as
well as the ability of each object; changing according to the development of the
socio-economy;
Fourthly, for urban areas, housing is an important part of the system of technical
infrastructure, especially social infrastructure; has a strong impact on the face of
the city.
1.1.2. Urban area, housing urban area
1.1.2.1. Urban and urban areas
At present, the term "new urban area" is usually understood as a newly built
residential area in accordance with the approved planning and synchronous
technical infrastructure, including the housing system and public works. Other for
business or non-commercial use.
1.1.2.2. Housing in urban areas


7
Houses in urban areas are high-rise buildings, villas and houses, built
according to the approved planning, with synchronous technical infrastructure,
including the housing system and infrastructure works. Other public use for
residential purposes, living of people and business.
Urban dwelling houses are one of the residential complexes (apartment
buildings, villas, adjoining houses), blocks of service works (electricity, water,
lights, premises, trees ... ) and other public welfare facilities (internal roads,
schools, health clinics ...)

1.1.3. To invest in the construction of urban centers and houses in urban centers
1.1.3.1. Invest in urban area
Under the provisions of Clause 8, Article 2 of the Government's Decree No.
11/2013 / ND-CP of January 14, 2013 on urban development investment
management, urban development investment projects are the first projects the
construction of a project or a complex of works in the urban development area
already decided and promulgated by competent authorities.
Urban construction investment project is an investment project for the construction
of works (which may include dwelling houses, technical infrastructure, public
works ...) on a land plot allocated in the developed area. The plan is approved by
the competent authority.
1.1.3.2. Invest in building houses in urban areas
With regard to the definition of housing construction investment projects, as
stipulated in Clause 8, Article 3 and Clause 2, Article 17 of the Housing Law of
2014, housing construction investment projects shall sum up the relevant
proposals. the use of capital for the construction of new dwelling houses, technical
and social infrastructure works in service of housing demand or for renovation or
repair of dwelling houses in a certain place, including: Projects for investment in
the construction of urban centers or mixed-use projects, with the land area reserved
for the construction of dwelling houses; (2) Work construction investment project
for mixed use for living and business purposes.
1.1.3.3. Stakeholders in investment in housing development in urban areas
- Government
The state is the person (entity) responsible for building the legal system, creating
the legal framework for investment activities of housing development in urban
areas. The State invests in the development of housing in urban areas as a macro
manager of the activities of the housing market.
- Investor
A construction investor is a person (organization) owning capital or a person
assigned to manage and use capital for the construction of a work. Investors shall

be fully responsible before the law and investors for the whole quality and
schedule of works as well as the cost of investment capital as prescribed by law.
Owners of urban residential development investment projects are (organizations):
They have invested capital under their ownership (satisfying the conditions
prescribed by law); Having a reasonable project proposal in line with the planning
and implementation plan of the urban development area.
- Building contractors


8
Contractors in the construction of urban housing development investment projects
are organizations and individuals with full capacit
y for construction activities and capability for construction practice when
participating in contractual relations to projects. Investment projects to build
houses in urban areas.
1.1.4. Investment in housing development in urban areas
Investment in housing development in urban areas is an investment activity,
forming all types of housing under the approved planning for each urban area in
order to meet the housing demand of urban people, according to Business
principles are investment activities in which the investor pays money to invest in
the construction of houses in urban areas and infrastructure works in service of
people's daily life in construction investment projects. Build new urban areas,
create new property for people's lives in urban or rural areas.
1.1.5. State management of investment in housing development in urban areas
State management of investment in housing development in urban areas is the
state management of the most common investment in housing development in
urban areas of the country, is operating at the macro level, It is a continuous,
organized and orientation effect that meets the objectives of the competent
agencies in the process of investment in housing development in urban centers;
Providing a favorable investment environment for investors, a comprehensive legal

system, socio-economic measures, technical organization and other measures, from
the preparation of investment to To finish the investment, to achieve the highest
results and investment efficiency, to meet the situation of urban development, the
demand of people compared to the urbanization speed of the country, and to
implement Socio-economic objectives have been set.
1.2. State management system, objectives and role of state management of
investment in housing development in urban areas
1.2.1. State management system of investment in housing development in urban
areas
State management of investment in housing development in urban areas is
very large, involving many sectors and areas such as: natural resources,
environment, fire prevention, security, national defense, top private, construction,
transportation, industry, ...
Thus, the state management of housing development in urban areas is implemented
by the state through the system of state management apparatus, in association with
the state power, specifically:
- The Government performs the unified State management of investment in
housing development in urban areas throughout the country.
- The Ministry of Construction is answerable to the Government for the
unified State management of investment in housing development in urban areas.
- The ministries and ministerial-level agencies shall, within the ambit of their
tasks and powers, coordinate with the Ministry of Construction in performing the
State management over investment in housing development in urban centers.
- The People's Committees at all levels shall have to perform the State
management over investment in housing development in urban centers in their
respective localities according to the Government's decentralization.


9
1.2.2. Objectives of state management of investment in housing development

in urban areas
The goal of State management of housing development in urban areas is
through the operation of state management to ensure the investment projects for
housing development in urban areas are implemented in accordance with the
direction of housing development in each stage. To implement the policies on
housing and construction investment, to ensure the efficiency of investment, to
fully meet and satisfy the demand of housing users in urban areas.
1.2.3. The role and characteristics of state management of housing
development investment in urban areas
1.2.3.1. The role of state management of investment in housing development in
urban areas
- Contribute important to the realization of the objectives, ideas, policies and
policies in society. Through the function of execution and administration of the
state administrative agencies on investment in housing development in urban areas
- Maintaining the role of social administration, adjusting social relations in the
direction of unity; plays the role of arbitrator to deal with the macro-level conflicts
with regard to housing development investment.
- Support to stimulate development, maintain and promote the development of
society: consolidate and develop the infrastructure system, intervene in the
development of society through investment policy system. To develop housing in
urban areas, creating material material conditions for the development of the urban
economy. ..
- Produce material material conditions that affect social activities and adjust
the social relations.
1.2.3.2. Characteristics of state management of investment in housing
development in urban areas
- State management of investment in housing development in urban areas
often lasts for many years, from the construction of houses in urban areas to the
management of the use of houses in urban areas after the completion of
construction. Build houses to exploit.

- State management of investment in housing development in urban areas is
closely related to state management of the use of capital, supplies and labor
necessary for construction investment and development of various types of houses.
in urban areas.
- Objects of the State management of housing development in urban areas are
medium- and large-scale projects that have direct and important impacts on the
socio-economic development in the areas where the urban areas are built. new.
Supervising, inspecting and examining the implementation of the State's laws and
policies on investment in housing development and investment in new urban
development regarding responsibilities of ministries and provincial / city.
1.3. State management of investment in housing development in urban areas
1.3.1. Developing and announcing strategies and planning for investment in
housing development in urban areas
1.3.1.1. To formulate strategies for investment in housing development in urban
areas


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Investment strategies for housing development in urban areas are expressed in the
national housing development strategy in each period, specifically throughout the
country and for each locality, ensuring the regulations of housing law and other
related legal policies.
1.3.1.2. Planning investment in housing development in urban areas
The State shall take the initiative in building and planning the development of the
urban network in the whole country in the long-term and concretize it with
plannings and plans on the construction of urban centers in each period in
compatibility with the level Economic development in the country and in each
place. The State shall announce the planning and management of the process of
implementation of planning on investment in housing development in urban
centers.

1.3.2. The State shall elaborate and implement the law and manage the
regulations and standards in investment in housing development in urban
centers
State management of construction and implementation of the law in the area
of investment in housing development in urban areas means the work, formulation
and enforcement of laws and promulgation of legal documents issued by state
agencies. At the central level, localities also promulgated legal documents on
investment in housing development in urban centers in order to manage activities
of investment in developing urban houses on the territory of the country. their
localities.
1.3.3. State management of normative work - standards in investment in housing
development in urban areas
Design standards, techniques in housing development in urban areas are also
part of urban design, a dynamic and flexible field. It's not like mechanical design
or building items that can be easily standardized, it's very different, depending on
where you are with the particular space and in different regions. Streamline the
functions used in the urban public spaces ...
1.3.4. To exercise the State management over the order and procedures for
investment in housing development in urban centers
The order for investment in housing development in urban areas must comply
with the following basic procedures: (1) Proposing the investment policy of the
project; (2) Selecting investors to implement the project in accordance with
regulations; (3) To elaborate, appraise and approve detailed construction
plannings; (4) Making, appraising and approving the project feasibility study
report; (5) Prepare, appraise, approve the environmental impact assessment report,
commit to protect the environment; (6) Land allocation, land lease, land recovery;
(7) Making, appraising and approving technical designs and cost estimates; (8)
granting construction permits; (9) Acceptance, handover of construction works;
(10) Issuance of certificates of land use rights, ownership of houses and assets on
land; (11) Settlement of investment.

1.3.5. State management of mobilization of investment capital for housing
development
1.3.5.1. Some sources of capital mobilized mainly for housing development
investment


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Major capital sources for investment in housing development in urban areas
include: (1) bank capital and credit institutions; (2) mobilizing capital from bond
issuance; (3) mobilizing capital through the issuance of real estate stocks from the
stock market; (4) mobilizing foreign direct investment; (5) mobilize capital from
idle money in the population; (6) mobilizing capital from customers (home
buyers); (7) Establish trust funds for the housing and real estate markets.
1.3.5.2. To exercise the State management over the mobilization of investment
capital for development of houses in urban centers
State management of mobilizing capital for investment in housing development in
urban areas is the State's development of a mechanism to mobilize capital in order
to meet the investment tempo, ensuring concentration and efficiency; To make the
fullest use of land revenue sources, especially the projects on development of new
residential quarters; Applying mechanisms of socialization of investment,
mobilizing capital in many forms; mobilizing development assistance (ODA)
capital, encouraging investors (individuals, organizations ...) to invest in
development.
1.3.6. State management of the urban housing market
1.3.6.1. Market for housing in urban areas
The housing transaction market is the aggregation of housing relationships, which
is carried out through monetary commodity relations, takes place in a certain space
and time, where transactions take place. go home Buyers and sellers interact with
each other to determine price and quantity of goods and services; Commodity
trading is housing in urban areas.

1.3.6.2. State management of the urban housing market
State management of the operation of the urban housing market is very important,
as the operation of this market is subject to strict regulation and adjustment of the
system of legal documents and basic. Subject to the laws of real estate business,
housing law, civil law ...
1.3.7. Inspection and examination activities for investment in housing
development in urban areas
The inspection and examination of investment in housing development in
urban centers aims to supervise the observance of policies and law on investment
in construction of houses in urban centers. The inspection and examination in
urban development investment in Vietnam now based on the legal norms of
construction inspection, is reflected in the legal documents (Law on Construction,
Law The Law on Land, the Law on Housing, the Law on Real Estate Business, the
Law on Urban Planning), subordinate documents (decrees, circulars, decisions)
1.4. A number of criteria for assessing the effectiveness and efficiency of state
management of housing development investment in urban areas
Table 1.1. Criteria for evaluating the effectiveness and efficiency of state
management on investment in housing development in urban areas
Criteria Symbol
HL1
HL2

Evaluation criteria
Level of response to transparency and transparency of urban development
projects
The level of completeness and uniformity of the legal system in the field of


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HL3
Effective
ness
HL4

HL5
HQ1
Effective HQ2
HQ3
HQ4

PH1
Fit
PH2

PH3

BV1
BV2
Lasting
BV3

housing development investment in urban areas in Vietnam
Assess compliance with law, and obey senior commands of civil servants at
the competent agencies in the field of investment in housing development in
urban areas.
Assessment of the smooth coordination between parts of the administrative
system, the state management in the field of investment in housing
development in urban areas
Levels of enterprises' implementation of laws and policies in the field of

housing development investment in urban areas in Vietnam
Level of completion of plans in housing development investment activities
in localities
Effectiveness and quality of the appraisal and approval of local state
management agencies in urban development investment projects
Effectiveness of propaganda and dissemination of legal documents in
localities
Effectiveness of planning management in meeting the socio-economic
objectives of urban housing development in localities over time with the
national urban housing development strategy
The suitability of the legal system in the field of urban housing development
investment with the real urban housing development of Vietnam over time
The compatibility of the general planning and the suitability of the system of
standards and standards in the formulation of investment projects on housing
development in urban centers in localities in the recent past.
The quality of human resources of the state management system and the
speed of development of urban housing development projects in the past
time in Vietnam
The coherence of the urban investment policy of the local economy with the
country's investment strategy for housing development.
State management in the area of investment in housing development in
urban areas in the past, has guaranteed the objective of equitable distribution
of housing products in the urban housing projects.
State management of investment in housing development in urban areas in
Vietnam ensures the elements of infringement of natural relics, historical
relics, cultural and public works.

Source: Synthesizer
1.5. Factors affecting the state management of investment in housing
development in urban areas

1.5.1. Group of objective factors
A number of objective factors include: (1) economic factor; (2) Impact of
international integration; (3) social factors (population growth, urbanization, free
movement of people from rural to urban areas), (4) budget for planning
development, infrastructure; (5) Capacity, level of development of enterprises.
1.5.2. Group of subjective factors
The subjective factors include: (1) perspective, strategy development; (2) Legality
and policy mechanism; (3) State management apparatus; (4) Capacity of managers.
1.6. Experience of some countries in state management of urban housing
development and lessons for Vietnam


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1.6.1. Experiences of some countries in state management of urban housing
development investment
1.6.1.1. Chinese experience
- Experience in planning and planning management
- Experience in capital and market management
1.6.1.2. Singapore's experience
Singapore attaches great importance to the standards and standards for the
construction of high-end apartments suitable for the environment.
1.6.1.3. Experience of Japan and Korea
The experience of Japan and Korea is that the State organizes housing
development corporations owned by the State, aimed at stabilizing the housing
market, ensuring social security;
1.6.1.4. The experience of Australia
Australia builds a unified housing management model from central to local.
1.6.2. Some lessons learned for Vietnam from foreign experience
- Lessons learned on model management
In the coming time, it is possible to apply the experiences of some countries,

especially Australia, to develop a model for management of interconnected
information systems related to housing development. urban areas.
- Lessons learned from planning work
Vietnam can apply the experience of Australia planning is based on the criteria
outlined above: Sustainability of the society; Natural sustainability; Technical
sustainability; Financial sustainability. Social sustainability.
- Lessons learned on building an information technology database
The competent state management agencies shall apply e-informatics technology,
build, manage and use information systems on houses and the real estate market.
- Lessons on management of purchase, sale and mobilization of capital in
housing development investment
Vietnam can apply the Chinese experience on the system of management of
purchase and sale, capital mobilization in investment housing development online
through the website of specialized agencies such as the Ministry of Construction,
Control and control both the progress and the capital mobilization of the investor
to minimize the risk for home buyers.


14
CHAPTER 2. STATE MANAGEMENT ACTIVITIES ON INVESTMENT IN
HOUSING DEVELOPMENT OF URBAN AREA IN VIETNAM
2.1. Overview of real estate investment in urban areas in Vietnam
2.1.1. Status of urban development in Vietnam
Vietnam is now establishing urbanization zones, moving towards the formation of
urban networks nationwide, linking rural areas with neighboring cities to ensure
the benefits of economic growth for people. rural people.
2.1.2. Situation of investment in housing development in urban areas in Vietnam
Over time, the urban development situation in general, mainly housing projects in
urban areas in the local development is more broad, rather than in depth, the level
of development efficiency is low.

The investment in the construction of urban housing development projects is still
limited, the situation of violations of planning, construction permits, illegal
construction and illegal operation still occurs, has not been bumped. The housing
investment in urban areas is still unbalanced.
2.1.3. A general assessment of the status of investment in housing development
in urban areas
New demand for housing has been and continues to be concentrated in some
big cities and industrial zones, especially Hanoi and Ho Chi Minh City. The pace
of development of urban housing projects has increased markedly over the years,
both in the number of urban dwellings and in the quality of housing.
However, there are still many limitations and inadequacies in state
management in the field of investment in housing development in urban areas,
reflected by the slow progress, stagnation, the project planning adjustment many
times. Appropriate planning ...
2.2. An analysis of state management of investment in housing development in
urban areas in Vietnam
2.2.1. Current status of building strategy, investment planning for housing
development in urban areas
2.2.1.1. Situation of building strategy for housing development in Vietnam
On November 30, 2011, the first National Housing Development Strategy to 2020,
vision to 2030 was approved by the Prime Minister. The national housing
development strategy identifies the simultaneous development of two types of
housing: First, commercial housing is a commodity housing market, which is
available to eligible groups. market; Second, social housing is a non-commodity
housing market with the support of the State to reduce costs, helping policy
beneficiaries, the poor, low-income people, officials, public employees. civil
servants, armed forces, workers, students ...
2.2.1.2. Status of state management of urban housing development investment
According to the survey, in recent years, projects have been more transparent than
housing development projects before 2011. However, there are still limited issues

such as: Publicity, transparency of society The level of conformity of the general
planning of urban housing development projects in urban areas is low.


15
Specifically, the Government Inspectorate has identified a wide range of violations
ranging from planning, land use planning, construction planning to land use
management in Ho Chi Minh City and Hanoi. For construction planning, there are
still many shortcomings, weakness and inadequacies. The state management of
loose construction planning has led to many violations (Source:
www.thanhtra.gov.vn).
2.2.2. State management of construction and implementation of laws related to
housing development investment in urban areas
2.2.2.1. Status of legal development related to housing development investment in
urban areas
Vietnam has promulgated many important laws to build a legal system to manage
investment in housing development in urban areas in Vietnam, specifically the
revised Land Law 2013, Enterprise Law 2014, Law Building 2014, Investment
Law 2014, Civil Code 2015 (Law No. 91/2015 / QH13), related to the adjustment
of property rights and property rights, civil transactions on real estate; The 2014
Housing Law and the 2014 Real Estate Business Law. These laws add, modify and
adjust to address the shortcomings of the real estate market in Vietnam at an earlier
stage.
2.2.2.2. State management of law implementation related to housing development
investment in urban areas
Investment in housing development in urban areas is one of the fields subject to the
Laws, there are close links and coordination between many sectors and many
different areas such as urban planning, land, housing, finance, construction
investment, technical infrastructure, environment and administrative management,
population ... The current legal documents are not regulated and fully adjusted,

overlapping ...
2.2.3. Status of state management on standards and standards related to
housing development investment in urban areas
2.3.3.1. The status of the construction of the standard system relating to urban
development investment
The system of construction standards and standards in Vietnam is closely related to
the development investment process of urban housing projects. So far, standards
and standards have basically met development requirements of the industry in
general and investment in housing development in particular. However, this system
has many shortcomings in the process of construction and management,
application.
2.3.3.2. Status of state management of standards related to urban housing
development investment
- The urban planning system: The current regulations still contain too many
detailed regulations, which make it difficult to apply, apply, restrict the creation,
apply new methodologies and methods. new to the planning.
- Scale and density of urban construction: At present, large urban areas in
Vietnam are thought to run according to the quantity and profit of the investor or


16
the designer so the works often violate the mechanical principles. a copy of the
construction standard on planning.
- Housing standards and standards: There are still many shortcomings in the
issuance of norms on housing in general and housing in urban areas in particular.
The standards and standards are slow to be researched and innovated, thus failing
to meet the requirements of the society. The level of harmonization of the national
standard system with the international standard system is low.
2.2.4. State management of the order and procedures in investment in housing
development in urban areas

2.2.4.1. State management of the order and procedures in investment in housing
development in urban areas
The state of the process of housing development in urban areas in Vietnam is
overlapping, lacking uniformity, complex procedures, multiple clues that lead to
duplicate records in the regulatory system. of the Law.
2.2.4.2. Decentralization in housing development investment in urban areas
At present, decentralization in the area of investment in housing development in
urban areas has basically adjusted and synchronized a number of procedural rules
to the field, most recently the Housing Law 2014 and specific is Decree No.
11/2013 / ND-CP. But implementation in the local is not strictly adhered.
2.2.5. Status of state management of mobilizing investment capital for housing
development in urban areas
2.2.5.1. Real status of enterprises participating in housing development investment
According to the survey, the real estate development companies, mainly residential
real estate projects in Vietnam, still account for a large proportion of foreign
investors.
Figure 2.3. Situation of investors buying real estate in Vietnam in the period 20062015

Investors buy real estate in Vietnam 2006-2015
Viet Nam
Han Quoc
Singapore
Malaysia
Hong Kong
My
Nhat
Khac
Source: Real Capital Analytis, Q4 2015

17
2.2.5.2. Status of State management of mobilizing investment capital for housing
development in urban areas
State management of capital mobilization of investors has not completed the
remedies and control in time, the mechanism of controlling the use of capital for
the right purpose of investors when making capital mobilization in the form of
buying and selling The construction of future houses is still inadequate.
2.2.6. Status of State management of the market of housing transactions in
urban areas
2.2.6.1. Situation of the housing market in the future
The housing market tends to form modern satellite towns in cities and provinces,
with large-scale urban projects. However, the state management of the transaction
market of this type of housing is still inadequate in practice.
2.2.6.2. Status of state management of housing transactions formed in the future
The current status of the law of real estate business for the purchase of houses and
construction works in the future still have some inadequacies, resulting in the
implementation of the contract has generated a lot of disputes, the picture The
illicit business practices are becoming more and more sophisticated and serious,
and many problems arise between homebuyers and investors.
2.2.7. Status of state management of the inspection and examination of investment
in housing development in urban areas
The most common violations in the area of investment in housing
development in urban areas are still many in the localities across the country,
especially the two big cities of Hanoi and Ho Chi Minh. The inspection and
examination of the construction of urban housing development projects is carried
out regularly. Inspecting conclusions require revision of the State management
agencies, investors, relevant units and individuals, which need to be adjusted in the
elaboration, appraisal and approval of construction plannings; managing and
implementing the planning; granting construction permits; To amend and
supplement a number of legal documents on construction planning.

2.3. An assessment of the state management of investment in housing development
in urban areas in Vietnam according to a number of criteria.
Table 2.11. Evaluation Criteria for Effectiveness
Rate of consent
Targets
(%)
1
2
3
4
5
HL1. The level of response to the openness and
transparency of urban development projects
0
HL2. Full level of legal system in the field of housing
0
development investment in urban areas in Vietnam
HL3. Assess compliance with laws, and obey senior orders
of civil servants at competent agencies in the field of
0
investment in housing development in urban areas.

3,7

32,2

54,1

10

8,9

33

49,9

8,2

2,1

52

44

1,9


18
HL4. To assess the rhythmic coordination among sections
in the administrative system and state management in the
0
field of investment in the development of urban houses.
HL5. The level of implementation of enterprises on laws
and policies in the field of housing development investment
0
in urban areas in Vietnam

15

20

47

38

0

29

41,5

9,5

1- Strongly disagree; 2-Disagree; 3-split; 4-Agree; 5-Very agree
(Source: author based on survey results, 2016)
2.3.2. Effective criteria
The effectiveness of state management of urban housing development is
measured indirectly through the following specific criteria:
Table 2.12. Evaluation Criteria Effectiveness
Rate of consent
Targets
(%)
1
2
3
4
5
HQ1. The level of completion of the plan in housing
development investment activities in localities
HQ2. The efficiency and quality of the appraisal and

approval of local state management agencies for
investment projects on urban housing development
HQ3. Effectiveness of propaganda and dissemination of
legal documents in localities.
HQ4. The level of management effectiveness in planning
and meeting the socio-economic objectives in urban
housing development in localities over time with the
strategy of urban development of the country.

13

39,5

44

3,5

0

5,5

20,4

53,6

20,5

0

2,7

51,5

33,8

12

0

2

9,6

43,2

45,2

0

1- Strongly disagree; 2-Disagree; 3-split; 4-Agree; 5-Very agree
(Source: author based on survey results, 2016)

2.3.3. Assessment of state management of urban housing development
investment in Vietnam according to appropriate criteria
Based on survey data evaluating the criteria of the legal system in the field of
investment in housing development in urban areas with the reality in urban housing
development of Vietnam. Data show that the relative weight of relative
appropriateness is as follows:
Table 2.13. Criteria for eligibility
Rate of consent

Targets
(%)
1
PH1. The suitability of the legal system in the field of urban
housing development investment with the real urban
0
housing development of Vietnam over time
PH2. The compatibility of the general planning and the
suitability of the system of standards and standards in the
5,5
formulation of investment projects on housing development
in urban centers in localities in the recent past.

2

3

4

5

21,4

57,4

21,2

0

20,4

53,6

20,5

0


19
PH3. The quality of human resources of the state
management system and the speed of development of urban
2,7
housing development projects in the past time in Vietnam

51,5

33,8

12

0

1- Strongly disagree; 2-Disagree; 3-split; 4-Agree; 5-Very agree
(Source: author based on survey results, 2016)
2.3.4. Assessment of state management of investment in housing development in
urban areas in Vietnam according to sustainable criteria
Table 2.13. Sustainability Criteria
Tỷ lệ đồng ý
Chỉ tiêu
(%)

1
2
3
4
5
BV1. The coherence of the urban investment policy of the local
economy with the country's investment strategy for housing
2,9
development.
BV2. State management in the area of investment in housing
development in urban areas in recent years, has ensured the
0
target to meet the demand for housing products in urban areas
for people.
BV3. The state management of investment in housing
development in urban centers in Vietnam ensures the planning
of elements on the violation of natural relics, historical relics, 2,7
cultural and public works.

17

60,3 19,8

0

9,1

51,4 39,5

0

51,5 61,4 29,1

0

1- Strongly disagree; 2-Disagree; 3-split; 4-Agree; 5-Very agree
(Source: author based on survey results, 2016)
2.4. General assessment of the achievements and limitations in state
management of investment in urban housing development and causes
2.4.1. Achievements in state management of investment in housing development
in urban areas
- The country's economic situation has a lot of influences on the state
management of investment in housing development in urban areas.
- The impact of international integration on the state management of urban
housing development
- The relocation of population and investment in the development of
significant socio-economic infrastructure
- The capacity of the investor of urban housing development project
2.4.2. A number of key constraints exist in state management of urban housing
development
- Housing development strategies of localities are weak, lack of seamless. The
legal system, policies and legal documents have overlapping status in
implementation.
- The planning of urban areas is not operating smoothly, the quality is not
guaranteed, the status of project adjustment is common.
- The State has not created a diversified and efficient financial support
system,


20

- The construction and evaluation of standards and standards are not
appropriate and not timely adjusted.
- Administrative procedures related to the preparation and implementation of
urban housing development projects are cumbersome, overlapping and not
transparent.
- The interdisciplinary inspection work is not fierce, the violation of planning,
standards standards in the investment projects for housing development in urban
areas is still popular.
2.4.3. Causes leading to shortcomings in state management of investment in
housing development in urban areas
2.4.3.1. Group of objective reasons
- Impacts of international integration and social factors on population have
significantly shifted to the State management of urban housing development
investment
- The impact of investment in socio-economic infrastructure development
- The capacity of the investor of urban housing development project
2.4.3.2. Group of subjective reasons
- Strategy and planning investment in housing development in urban areas
- The impact of the system of mechanisms, policies and laws related to urban
development investment
- Capacity of civil servants
- State management apparatus


21
CHAPTER 3. ENHANCING SOLUTIONS
QUALITY AND EFFECT, EFFECTIVE STATE MANAGEMENT
ON INVESTMENT IN HOUSING DEVELOPMENT IN URBAN AREA IN
VIETNAM NEXT TIME
3.1. Background and direction of improving the state management of

investment in housing development in urban areas in Vietnam until 2030.
3.1.1. Background and issues for state management of urban housing
development in Vietnam in the period to 2030
Nowadays in the world, smart urban development towards green growth and
sustainable development is no longer a prediction, but has become a viable trend
for many cities. must face to face.
In Vietnam, how to develop to suit the real situation in big cities is posing many
challenges, many provinces and cities are building and implementing the project
"smart city development ".
3.1.2. Direction to complete and improve the state management of urban housing
development in Vietnam in the period to 2030
Some of the major orientations reflected in the legal and strategic documents
system include:
First, improve the quality of construction and implementation of investment
strategies for housing development in urban areas
Second, improve the quality of planning to ensure appropriate and effective
To invest in urban development according to planning and plans, especially
managing the development of housing projects in new urban areas and urban
development areas ... towards sustainable development.
Thirdly, to regularly improve the quality of the content of management and
implementation of the contents of the system of state management criteria for
investment in urban housing development
Fourthly, it is necessary to strengthen the quality of state management of
investment in housing development in urban areas in a number of other factors
such as:
To enhance the role of the State in order to efficiently exploit and use land
resources for housing development and at the same time control and regulate the
real estate market for sustainable development.
3.2. Some solutions to improve the quality of state management of urban
housing development investment

3.2.1. To raise the quality and adjust the construction of housing strategies in
each period, especially for investment projects on urban housing development.
The State should continue studying and adjusting the national urban
development strategy, building the national urban development program in the
period of 2020-2030, the green urban development plan of Vietnam.
3.2.2. To raise the quality of the formulation of mechanisms, policies and law on
investment in housing development in urban centers


22
(1) Institutionalization of the Party's policies and guidelines, State policies, control
of urban development in accordance with planning and plans; (2) Improve the
efficiency and effectiveness of SM management in urban development by defining
the authority and responsibility of the central administration from central to local
levels; (3) Ensure consistency, consistency and effectiveness of the legal system;
(4) The State needs to issue a separate chapter for investment in housing
development in urban areas.
3.2.3. To formulate and implement synchronously the planning work in the field
of investment in housing development in urban centers
Socio-economic planning, urban construction planning, branch planning
should be studied in view of regional integration, towards the sustainable
development of urban areas and adjacent areas; To continue reviewing and
adjusting construction plannings and planning of urban centers so as to suit the
economic, cultural and social situation and ensure the stability and sustainability.
3.2.4. To expand the forms of capital mobilization for investment in housing
development in urban areas
Study some capital raising channels; study mechanisms to allow enterprises to
invest in housing development in urban areas to be mobilized; To study the plan on
"securitization" of urban residential development investment projects; Socializing
the mobilization of resources through alternatives; Model study of the parties.

3.2.5. To raise the quality of construction and management of the system of
standards and norms in investment in housing development in urban centers
To formulate and promulgate a system of appropriate standards and standards on
investment in housing development in urban centers, update new standards and
standards according to modern technologies; To manage investment projects on
urban development according to standard norms, inspect and supervise and
promptly update them widely.
3.2.6. To intensify the inspection and supervision of housing development
investment activities in urban centers
(1) Strengthening propaganda and raising awareness of the community on order
and discipline in construction; (2) Raise the role and responsibilities of the
Chairman of the People's Committee at the district and ward level in dealing with
violations; (3) To continue consolidating and perfecting the contingent of
inspectors and civil servants; (4) Strengthening inspection and timely detection of
violations; (5) Receive feedback from the people and press agencies; (6)
Regulations on responsibilities of local authorities.
3.2.7. Public Administration Reform in state management of investment in
housing development in urban areas
The State must step up the reform, review and control of administrative procedures
under the management functions of the concerned ministries and branches, review
and reduce investment conditions in line with the direction of Prime Minister.
3.3. Some solutions to improve the quality and efficiency of state management
of urban housing development investment


23
3.3.1. Solutions to ensure the state management of investment in housing
development in urban areas
To regularly coordinate in the elaboration, supplementation and finalization of
the system of legal documents on State management in the domain of investment

in housing development in urban centers in order to ensure the compatibility with
the specialties. This is in line with the strategic orientation of urban housing
development in Vietnam until 2050 that has been approved by the Prime Minister.
3.3.2. Solutions to ensure the effectiveness of state management of housing
development investment in urban areas
The implementation of the State management organization should pay more
attention to the organizational system and management forces at the district,
commune and ward levels and the subjects involved in the investment in housing
development in urban areas. Develop a clear and detailed decentralization model to
implement, the content of investment in housing development in urban areas is
specific and direct to the local government implementation, on the basis of
increased responsibility for fish human.
3.3.4. Solutions to improve the quality of human resources of the contingent of
officials for the implementation of state management of investment in housing
development in urban areas
- Develop the project to supplement human resources: Ministries and
localities need to take initiative in developing proposals to supplement the human
resources of the public sector in time; Recruit the right people, the right job, get the
job and work efficiency as the criteria for selecting personnel.
- Formulating mechanisms and policies to train the contingent of officials:
The State creates conditions for cadres to attend long-term training courses;
Encouraging enterprises, investors and people to send laborers or their children
abroad for training and study, to intensify the coordinated coordination among
universities and centers for cadre training and education. Ministries and localities
on methods and contents of the Ministry.
- Building reform of regimes and policies to motivate cadres and civil
servants: The State needs to have research on wage policies for civil servants
which must be commensurate with the value of labor force, job results; To
renovate the emulation, commendation, discipline, training, fostering, environment
and working conditions for civil servants

3.3.5. To organize the implementation of the assignment of state management
decentralization for investment in housing development in urban centers
- Research on the decentralization of urban and provincial authorities at the
provincial and district level basically carried out the investment development from
planning, planning, field, project control.
- Central state management agencies focus on developing mechanisms,
policies and strategies for development.
- Decentralization and delegation of power to the management boards of
development investment projects and investors to carry out specific tasks on the
basis of being actively implemented and well performing the role of the inspection
and control agencies. monitoring, including community monitoring.