The Vietnam Housing and Urban Development Corporation (HUD) and the BIC Joint Stock company (BIC) on May 28 started the construction of a social housing project in Hanoi to partly meet housing demand in the city.

The project covers 2.2 hectares in the new south western urban area Linh Dam, providing 1,037 apartments, equivalent to 75,815 square metres.

The project will cost 710 billion VND (33.8 million USD), which is the first instalment of a 10,000 billion VND concessional loan (476 million USD) that the Bank for Investment and Development of Vietnam (BIDV) and HUD signed earlier this year.

According to Minister of Construction Trinh Dinh Dung, the building sector needs to perfect its mechanisms and restructure construction projects to meet people’s high demand for housing.

The Government has proposed many measures to thaw out the “frozen” property market to give people access to social housing and deal with social security issues, Dung added.

This is the first project implemented in line with Government Resolution No.02 that eases difficulties in Vietnam’s property market.

The ministry calls upon all enterprises, especially state-run companies to pioneer the social housing development movement.

The social housing project matches the State and Party’s policies, helping realise the 2020 national strategy on housing development with a vision towards 2030, according to HUD Chairman Nghiem Van Bang.-VNA