Vietnam needs an estimated 220 trillion VND (9.6 billion USD) to build about 294,600 units of social housing for low-income earners in urban areas and industrial parks in the 2021-2025 period, according to the Ministry of Construction.

Notably, low-income people in urban areas needs about 131,100 units with a total investment of about 138 trillion VND.

According to Deputy Minister of Construction Nguyen Van Sinh, there are 266 social housing projects with more than 142,000 units across the country, totalling more than 7.1 million square metres.

Another 278 projects with 274,000 units and a total area of 13.8 million sq.m are under development.

According to the ministry, policies for housing development for workers have yet to be mapped out. They are included in the policies for social houses.

Additionally, some localities have not paid much attention to formulating plans to develop social housing projects, especially for workers.

In the 2016 – 2020, over 2.16 trillion VND out of 9.24 trillion VND were distributed to the Bank for Social Policies for implementing the social housing policy.

Meanwhile, credit institutions including four commercial banks designated by the State Bank of Vietnam have not yet been allocated capital sources to compensate interest rates for social housing loans.

Compared to the capital plan for social housing development by 2020, the budget allocated for social housing development is still short of over 7 trillion VND in this period.

The Ministry of Construction has proposed the Prime Minister include a 65 trillion VND credit package in a programme to support post-pandemic socio-economic recovery and have mechanisms for social housing development, especially for workers in industrial and export processing zones.

To realise these goals, the Ministry of Construction suggested People's Committees of provinces and centrally-run cities coordinate with the ministry in reviewing and giving opinions on beneficiaries and conditions, and making a list of projects eligible for loans in accordance with regulations.

Priority will be given to investors of social housing projects that have been implemented but delayed due to lack of capital.

The ministry also urged the Government to propose the National Assembly add social housing projects, including those to develop homes for workers in industrial parks, to the mid-term public investment plan in the 2021-2025 period.

According to the ministry, the additional credit package aims to ensure "dual goals" of social security and housing for the disadvantaged while promoting economic recovery and development and removing difficulties for businesses in terms of housing development and the real estate market./.

Source: VNS