HCM City has set a target of building 70,000 social housing units by 2030 to meet the rising demand for affordable housing.
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An accommodation area for workers in HCM City’s Bình Tân District. — VNA/VNS Photo
Speaking a meeting on Friday, Bùi Xuân Cường, deputy chairman of the city People’s Committee, said the city specifically targets building over 26,000 social housing units next year.
Cường has urged relevant departments and district authorities to undertake comprehensive evaluations to expedite the implementation timelines of social housing projects in the city.
He has proposed project preparations be finalised within a six-month period, with the overall duration from commencement to completion being feasible within one year.
Of the ten social housing projects currently implemeted in the city, six of which have been completed, while four are in progress, resulting in nearly 6,000 housing units by far.
Although these outcomes are commendable, they remain inadequate and present considerable challenges in meeting future targets, he noted.
He noted several challenges to social housing development in the city, such as urban planning issues, procedural complexities, and investment approval delays.
He has also highlighted the lack of proactive funding efforts from investors, extended construction timelines, and unattractive incentive mechanisms that deter participation.
Phan Văn Mãi, chairman of the People’s Committee, said the city has recognised housing development as one of the critical components of its socio-economic advancement.
"The city is committed to addressing the bottlenecks that impede the development of social housing in order to meet the increasing demand and improve living conditions in order to attract and retain high-quality workers within the city," Mãi noted.
The city is actively seeking private investment in seven social housing projects in order to achieve the target by 2030.
Mãi encouraged all sectors to invest in housing development, particularly in social and low-cost housing.
Funding for the city’s housing development initiatives is anticipated to be sourced from private enterprises, credit institutions, household savings, and other avenues.
For social housing development specifically, funding will primarily be derived from private enterprises, preferential credit programmes, and 10 per cent of the city’s budget.
In a related move, the Ministry of Construction has recently proposed a fresh VNĐ100 trillion ($3.9 billion) credit package for social housing, funded by government bonds and managed by the Social Policy Bank
It offers loans for purchasing, building, renovating, or repairing social housing at interest rates set for poor households by the Government
The package aims to provide housing support for low-income individuals and social policy beneficiaries, which requires a total investment of VNĐ500 trillion.
Previously, the Government approved a VNĐ120 trillion package for preferential loans from four commercial banks, with rates 1.5 to 2 percentage points lower than standard rates. But only VNĐ1.2 trillion, or over 1 per cent, has been disbursed after a year.