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Ministry of Construction proposes credit package to build homes for workers

2021-10-23 07:54

 

A housing project built for workers in Kim Chung commune of Đông Anh District. — Photo courtersy of HNM

HÀ NỘI  - The Ministry of Construction has proposed a VNĐ30 trillion (US$ 1.3 billion) credit package to build low-cost homes for workers.

According to the Ministry of Construction (MoC), the package will help ensure social welfare for vulnerable people, enhance economic recovery and development, remove the difficulties plaguing enterprises and support the development of the housing and real estate market.

Although the Government has issued multiple solutions to develop affordable housing for workers, the supply of homes for workers at industrial parks have yet to meet the demand.

Across the country, there are 266 social housing projects with more than 142,000 units totalling more than 7.1 million square metres. Another 278 projects including 276,000 units with a total area of 13.8 million square metres are under development.

Cities and provinces have completed 121 social housing projects with 54,000 units for workers of industrial parks and are building 100 other projects with 134,000 units.

However, since early this year, no social housing projects for workers have been completed due to the COVID-19 pandemic.

According to the ministry, policies for housing development for workers have yet to be worked 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.

Therefore, the Ministry has proposed amending the 2014 Housing Law, specifying policies for homes for workers to attract investment.

While developing industrial parks, the investors must set aside a certain proportion of land to build homes for workers. These homes must have a minimum area of 10 square metres per person.

Land use fees, value added tax and corporate income tax should be reduced or exempted for investors of these housing projects. They should be given easier access to preferential loans from the Việt Nam Bank for Social Policies and other credit institutions.

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.

The Government should also quickly provide VNĐ3 trillion for social housing projects in line with its Resolution 41/NQ-CP dated 9 April, 2020.

According to the ministry, the additional credit package aims to ensure "dual goals" consisting 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.  — VNS

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