The supply of social housing in Vietnam is anticipated to increase significantly next year, driven by preferential policies and the Ministry of Construction’s (MoC) efforts to address obstacles hindering related projects, according to experts.
Ho Chi Minh City and Hanoi have been listed as emergers in the Asia-Pacific region in the first Inclusive Cities Barometer recently released by Cushman & Wakefield, a leading global real estate services firm.
Prime Minister Pham Minh Chinh chaired a government meeting on the current development of social housing and housing for workers on March 16 morning from the capital city of Hanoi.
Despite the Government’s concerted efforts to address the challenges of the property market, the market won’t improve until the end of 2024 due to a lack of affordable housing, experts have warned.
A large-scale project to build at least one million social housing apartments for low-income people and industrial park workers before 2030 is underway. Current demand outstrips supply, causing some to press for faster action.
In order to effectively disburse a low-interest housing credit package of 120 trillion VND (5.11 billion USD), many experts recommended expanding the list of borrowers.
The Ministry of Construction has been asked to work with other ministries and sectors to draft and submit a plan to build at least 1 million apartments of social housing for workers and low-income earners between now and 2030 to the Government in August.
Two 12-storey dormitories for factory workers are under development in Thu Duc City, Ho Chi Minh City, capable of accommodating more than 1,000 people.
State-owned Viglacera Corporation on February 8 broke ground on a 250-ha industrial park and a 2,000-unit housing project for factory workers and experts in the northern province of Bac Ninh.
Ho Chi Minh City authorities are seeking 37.6 trillion VND (1.66 billion USD) to build affordable housing for workers over the next five years, of which State revenue will account for no more than 5 percent of the total investment, according to the Department of Construction.
Chairman of the Ho Chi Minh City People’s Committee Phan Van Mai said the city plans to build one million units of affordable housing for low-income workers.
The Vietnamese real estate developer Nam Long Group has partnered with Japan's Nishi Nippon Railroad Co. Ltd in the EHome Southgate housing project in the Mekong Delta province of Long An.
The supply of affordable and social housing in Ho Chi Minh City continued to be far below the demand due to a shortage in the segment in the first sixth months of this year.
The supply of affordable housing for low-income earners in urban areas and industrial park workers has only met around 42 percent of the target, Bui Xuan Dung, Director of the Ministry of Construction’s Housing and Real Estate Market Management Agency, told a recent workshop.
Ho Chi Minh City is expected to need an additional 160,000 social housing apartments in the next decade to meet its rising population and demand for affordable housing, according to the city’s Department of Construction.
The Vietnamese real estate market at all segments continues showing its appeal to foreign investors, and hundreds of millions of USD are waiting to be poured into the market, according to a research conducted by property and investment management services firm Jones Lang LaSalle (JLL).