Focusing on building social housing for low-income people

According to Department of Construction, Binh Duong province has attracted 85 social housing development projects with a total floor area of 3.9 million m2, accommodating 240,000 people, with a total investment of VND19,000 billion. Among these, 43 projects are under Becamex social security housing scheme invested by Becamex IDC Corp as an investor with a total floor area of 3.1 million m2, total number of apartments is 70,000 units, a total investment of VND12,100 billion. Currently, 25 projects are completed and put into used with a total floor area of 491,262m2, accommodating about 40,000 people. In addition, the province has about 200 enterprises operating in industrial zones with accommodation for workers with a total floor area of 270.000m2, accommodating 47,000 people. Thus, from 2011 till now, total floor area of social housing in Binh Duong has achieved over 761,000 m2, accommodating about 87,000 people.

The province's efforts to build social housing have not met the huge demand of low-income people yet. To solve the accommodation need of migrant workers and students, households and individuals have also constructed more than 3 million m2 of lodging houses, which is equivalent to about 180,000 apartments, meeting the accommodation need of 450,000 people.

Becamex is continue building 10,000 social apartments to meet worker’s demands

To achieve these results, Mr. Nguyen Thanh Tai - Director of Department of Construction said, the Government had timely issued mechanisms related to housing and real estate market, preferential policies on social housing. Besides, Binh Duong province has interested in housing development for low-income people. Becamex social housing development model based on clean land fund was invested and put into use with preferential price combined with many forms of home loans from VND100 million to 200 million each 30-m2 apartment.

Mr. Nguyen Van Hung - Chairman of Directors' Board, CEO of Becamex IDC said, provincial leaders have particularly concerned about social welfare policy. Businesses and citizens are consistent in social housing construction for workers. In stage 1, Becamex built and put 5,000 apartments into use. 10,000 apartments of stage 2 are also being built. The next stages will be executed according to the actual needs of people. Mr. Hung said: "To achieve these results, we prepared in advance for the master plan, land fund for development. In addition, there is a methodical investment in the technical and social infrastructure, essential utilities, and services for daily life, while flexibly applying financial supporting packages and policies associated with social resources for the development of social housing."

Effective measures to social housing development are in need

According to forecasts, by 2020, the number of workers in provincial industrial clusters with housing demands would be about 1.2 million people. Additionally, there would be about 1.6 million m2 of housing for workers, including lodging houses for workers invested by local residents. To achieve these goals, more effective and synchronous solutions are in need.

Mr. Nguyen Thanh Tai said, the current difficulties in social housing development are some investors of commercial housing projects and new urban areas have set aside a land fund with available infrastructure for social housing construction but lack capital for deployment. Some locations are remote from living conditions of workers, lack infrastructures outside project. Besides, workers, low-income people, who cannot afford an apartment, still have demand for houses for rent near their company in order to facilitate travel and reduce the cost of living. Moreover, businesses are not really engaged in social housing construction, due to difficult access to preferential loans from the State Bank.

Social housing zones invested by Becamex are located near industrial clusters to facilitate workers (Photo: Becamex urban housing- Hoa Loiarea was built next to Vietnam - Singapore II industrial park)

Given those situations, at the Government's online conference on social housing, accommodation for workers, Mr. Tran Thanh Liem - Vice Chairman of Provincial People’s Committee, petitioned the Government, ministries and central agencies for additional sources for social housing funds to grant preferential loans to subjects. He also proposed that the Government continue preserve loan preferential rate of 4.8% / year in the coming time, extend the loan period to 20 years or more. Early deployment for households to borrow to buy or rent houses from the Bank for Social Policies. Research policies to immediately help subjects, like low-income people, laborers working in the province, registering temporary residence but having no labor contracts and without social insurance contributions, receive supports from preferential policies on social housing.

Mr Liem said, at present, the accommodation demands of workers in industrial parks are huge. Meanwhile, investors of industrial clusters, the State have not allocated sufficient funds to build up accommodations timely for workers, “lodging houses” are essential for addressing quickly accommodation demands of the labor force. He proposed that Ministry of Natural Resources and Environment would consider a land fund for “lodging houses” invested by households and individuals as commercial land. In addition, households, individuals would not have to make real estate business registration and prove financial capacity to carry out the construction of houses for rent.

It can be said, the development of social housing will simultaneously solve many problems of Binh Duong. It is the foundation for the development of urban, services, infrastructure and social infrastructure. Creating an attractive business environment for investors. It should be started from stable human resources to gradually fulfill all conditions to attract investment capital and other resources with high content of "gray matter".