(VOVWORLD) -Prime Minister Pham Minh Chinh last weekend chaired a national conference on removing difficulties and promoting social housing development. Social housing development is a pillar of social security policies and a growth solution. Recently social housing development has expanded but has not yet equaled the demand, which means ministries, localities, banks, and businesses must work together to find effective solutions.
 Prime Minister Pham Minh Chinh chairs a national conference on removing difficulties and promoting social housing development on March 16, 2024. (photo: VGP) |
The Resolution of the 13th National Party Congress and the 10-year socio-economic development strategy for 2021-2030 mention ways to ensure equal access to housing.
Initial results
Meeting the demand for housing, particularly low-income families and workers in industrial zones, has always been identified by the Government as a key task in national socio-economic development.
Last April, the Prime Minister initiated a project called "Investment in building at least 1 million social housing apartments for low-income people and industrial park workers in the period 2021-2030". Banks have pledged to reserve more than 5 billion USD for the project. So far 28 localities have announced 68 projects eligible to borrow from the housing credit package. Banks have committed to providing credit for 15 of the projects.
In the 2021-2023 period, 500 social housing projects began construction on 410,000 apartments. Only 72 of the projects (38,000 apartments) have been completed.
The Ministry of Construction says Vietnam has zoned more than 8,600 hectares of land for social housing. Compared to 2020, the land developed for social housing has increased by 5,250 hectares.
 Participants attend the conference on removing difficulties and promoting social housing development. (photo: nhandan.vn) |
130,000 apartments in 2024
Resolution 1, issued in January, 2024, outlining the main tasks and solutions to implement the national socio-economic development plan, calls for 130,000 social housing apartments to be completed this year.
Prime Minister Chinh said: “The Ministry of Construction has simplified bidding procedures for investors in social housing projects. The State Bank has directed large state-owned commercial banks to work with businesses to provide credit packages with 10-15 year terms and interest rates 3-5% lower than commercial lenders.”
Nguyen Van Thanh Huy, Deputy General Director of the Becamex Corporation, said it will focus on developing social housing and housing for workers. This year Binh Duong province intends to complete 10,000 new social housing apartments.
“In the first quarter of this year, we started construction on 2,000 apartments. The province has balanced resources with the involvement of commercial banks. Becamex found that loans for workers are still high-interest and short-term. If the loan period can be extended for workers, it will make it easier for them to buy a house,” Huy said.
Vietnam has been implementing the plan to build 1 million housing units by 2030. This would help to ensure social security and promote economic growth, but there are many obstacles ahead.