Dong Nai focuses on social housing construction

The southern province of Dong Nai is mobilising all resources for the construction of social houses for low-income earners as the demand is forecast to highly increase in the years to come.
The southern province of Dong Nai is mobilising all resources for theconstruction of social houses for low-income earners as the demand isforecast to highly increase in the years to come.

According to Nguyen Thanh Lam, Deputy Director of the provincialDepartment of Construction, the social housing demand is estimated to be63 million sq.m. by 2015 and 80 million sq.m by 2020.

Atpresent, the province has 91 social housing projects, including fiveinvested or bought back by the State and the remaining by other economicsectors. Of the total, only 23 projects have been completed, while anumber had to suspend construction due to capital shortage.

Lam blamed the slow progress for the gloomy real estate market as aresult of the economic recession, adding that businesses involved insocial housing faced difficulties in accessing preferential loans.

No enterprises have so far accessed the Government’s 30 trillion VNDpackage designed to stimulate demand and supply of social housing, asthey failed to meet its criteria, he said.

The State Bankof Vietnam’s Dong Nai branch reported that by the end of March, only 25billion VND of the package had been lent to40 individual borrowers.

Tran Quoc Tuan, Director of the branch, said the current price forsocial housing in Dong Nai, at nearly 15 million VND per sq.m, is toohigh for low-income earners.

Poor workers don’t need bigapartments with lots of conveniences, so we should build small ones tosuit their need, he said, adding that a worker couple can save only 2million VND each month, so policy makers and investors should considersuitable housing pricing at a level acceptable for them.

He suggested easing conditions for access to preferential loans for small investors.

According to Vice Chairman of the provincial People’s Committee Vo VanChanh, more than 450,000 workers are working for foreign-investedenterprises in the province and most of them are low-income migrants whoare in urgent need of housing.

The local authoritieshave urged the Department of Construction to review all social housingprojects, he said, noting that if any project is found infeasible, theprovince will resolutely withdraw land to allocate to other investors.

In addition, Dong Nai will encourage businesses indifferent economic sectors to engage in building social houses,especially those for workers and low-income earners in urban areas,while taking advantage of all capital resources from the State budget,banks, official development assistance (ODA) and government bonds, headded.-VNA

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