Although many low-income earners expected to have a house, social housing projects in Ho Chi Minh City only meet 5 percent of the demand. One of the main bottlenecks for social housing project construction is the lack of suitable land funds.
Chairman of the Ho Chi Minh City People's Committee Phan Van Mai informed that the city is focusing on implementing 18 projects, reviewing and completing the project of replacing 20,000 houses on and along the canals and developing worker accommodation, and social housing programs.
Minister of Construction Nguyen Thanh Nghi has just submitted to the Government an investment project to build one million social houses for low-income people and workers in industrial parks and export processing zones in the 2021-2030 period. For the feasibility of this plan, many solutions are needed.
Binh Dinh Provincial People's Committee, on October 6, signed a decision approving a joint venture investor to implement the Van Ha Urban Area project in Nhon Phu Ward, Quy Nhon City, Binh Dinh Province, with an area of 49.76ha, and total investment capital of over VND2.9 trillion.
After the support package of VND 30,000 billion (US$ 1,268,077,766) for social housing loans ended in 2016, the State Bank implemented social housing loans with preferential interest rates of 4.8 percent per year according to Decree 100 2015. However, because the budget has not been allocated to provide interest rate compensation to designated participating commercial banks which can’t lend. As a result, no investors in social housing projects can get loans with lower interest rates.
The Prime Minister yesterday requested the formation and implementation of the project ‘Building at least 1 million Social Houses for the Low-Income, Workers in Industrial Parks from 2021-2030’, specially to boost the development of social housing.
Low-income people have difficulty accessing loans to buy social housing due to complicated regulations and procedures; plus, very few social housing projects completed and as a result, the supply can’t meet the growing demand.
Yesterday, the Office of the People's Committee in Ho Chi Minh City said that Standing Vice Chairman of the municipal People's Committee Le Hoa Binh had just approved the plan for housing development in the city for the period of 2021-2025.
Chairman of the People's Committee of Ho Chi Minh City Phan Van Mai hoped that District 7 will be the pioneer in building social houses to replace dilapidated shelters on canals, worker accommodation, and social housing for low-income people in association with urban renewal to convert the district into the city’s southern regional center.
Chairman of Ho Chi Minh City People's Committee Phan Van Mai emphasized that city administration will work with the education sector and the health sector this week to soon finalize the plan for school reopening after Covid-19. Particularly, students in outlying districts of Cu Chi and Hoc Mon possibly go back to school earlier than their peers in other districts.
The HCMC People’s Committee will focus on improving administrative procedures and investment environment, solving problems in projects of businesses and people, providing capital and human resource to enterprises that can help organizations and individuals to participate in the city’s socio-economic recovery plan, said Chairman of the HCMC People’s Committee Phan Van Mai at the third meeting of the 10th-tenure People's Council of HCMC on October 19.
HCMC is seeking measures for the economic activities amid the ongoing Covid-19 pandemic. Districts of 7 and Cu Chi have been selected to trial the implementation of returning life in the “new normal" state and learn to live with the virus.