Vietnam has completed 266 social housing projects with more than 142,000 units, covering over 7.1 million sq.m. (Photo: VNA) Tothis end, the Ministry of Construction (MoC) has proposed the Prime Ministerput forward two credit packages, with a total value of 65 trillion VND (2.82billion USD), for social housing development, as part of a programme ofsocio-economic recovery after the COVID-19.
HaQuang Hung, Deputy Director of the Ministry of Construction Department ofHousing Management and Real Estate Market, said: “A credit package of 15trillion VND is under the medium-term public investment plan 2021-2025 todevelop social housing products.
“Thesecond credit package of 50 trillion VND will be refinanced by the State Bank,with appropriate interest rates and terms for commercial banks, to givepreferential loans to developers of housing projects for industrial parks(IPs) that workers lease; investors of social housing projects for sale, lease,or hire-purchase; and workers at industrial zones borrowing to buy or leasehousing.”
Accordingto the ministry, social housing is in dire need of support, particularly inareas that house workers near industrial parks, especially in the southernlocalities such as Ho Chi Minh City, Binh Duong, Dong Nai and Long An.
LeHoang Chau, Chairman of the Real Estate Association of HCM City, said atpresent, only 8 percent of IPs and export processing zones (EPZs) in HCM Cityhave accommodation for workers, while workers of the remaining IPs and EPZsmust rent housing outside, causing difficulties in pandemic prevention.
“TheGovernment has issued the Resolution 128 providing temporary guidance on"Safe adaptation, flexibility and effective control of the COVID-19pandemic" to support for recovery of the economy, including the realestate market. However, real estate businesses, including social housinginvestors, expect the State to have specific solutions. We do not request financialsupport, we just need solutions on solving difficulties caused by overlappingregulations,” Chau said.
Vietnamhas had a policy on developing social housing products for workers for tenyears, but when the pandemic began it found that workers have not benefitedyet, according to expert Vu Dinh Anh.
"Therefore,Vietnam needs to continue the policies on developing housing areas for workersin the next few years. If the housing security for workers is ensured, we willnot see tens of thousands of workers without work and money moving thousands ofkilometres back home, as happened recently," Anh said.
Solutions
Thecredit packages aim at promoting investment in social housing aimed at workersin urban areas, especially employees and workers working in industrial parks,Deputy Minister of Construction Nguyen Van Sinh said.
Accordingto Sinh, the additional credit package aims to ensure the 'dual goals' ofsocial security and housing for the disadvantaged while promoting economicrecovery and removing difficulties for businesses in housing development andthe real estate market.
Withpreferential policies, the State encourages all economic sectors to invest inbuilding social housing products to help workers and employees in IPs improvetheir quality of life and accommodation conditions.
TheMoC has also suggested that the People's Committees of provinces andcentrally-run cities coordinate with the ministry in reviewing progressand conditions, and compiling a list of eligible projects for loans.
Prioritywill be given to investors of social housing projects that have been approvedbut delayed due to lack of capital.
TheMoC has proposed that localities begin planning for investmentprojects, especially housing products for workers and employees in IPs.
Thelocalities need to review and add housing projects for workers of IPs into thelocal five-year and annual housing development programmes and plans. Theyshould also have specific mechanisms and solutions to create favourableconditions and administrative procedures to attract investors.
Inaddition, investment in essential infrastructure, such as schools,kindergartens, medical treatment facilities, cultural, training and sportsfacilities, both inside and outside social housing projects, needs to be paidattention to. According to the Ministry, some localities have not paid muchattention to formulating plans to develop social housing projects in thoseareas.
Theministry also urged the Government to propose the National Assembly add socialhousing projects, including those to develop homes for workers in industrialparks, to the mid-term public investment plan in the 2021-2025 period.
Vietnamneeds an estimated 220 trillion VND (9.6 billion USD) to build about 294,600units of social housing for low-income earners in urban areas and industrialparks in the 2021-2025 period, according to the ministry.
Low-incomepeople in urban areas need about 131,100 units with a total investment of about138 trillion VND.
Vietnam has266 completed social housing projects with more than 142,000units, totalling more than 7.1 million sq.m, Sinh said. Another 278 socialhousing projects on a total area of 13.8 million sq.m with 274,000 unitsare under development./.
VNA
