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|Tran Van Tien|
VIR talks with deputy head of Vinh Phuc Province's Department of Construction Tran Van Tien to shed some light on the province's efforts to satisfy such demand.
How has the province worked on planning housing for industrial zone workers?
The survey and summarisation of housing demands by industrial zone workers were integrated in the provincial urban housing development programme by 2010 with vision towards 2020 which was approved by the provincial authorities via Resolution 31/2008/NQ-HDND.
The northern province of Vinh Phuc is home to 24 industrial zones covering 6,038 hectares. Some industrial zones has attracted many labourers from inside and outside the province such as Khai Quang, Binh Xuyen and Kim Hoa.
Some big zones have already worked on plans to build workers’ housing such as Khai Quang Industrial Zone which set aside 12.2ha and Ba Thien Industrial Zone 35ha to build houses for their workers.
Some workers’ housing projects are in the pipeline. They include a 35ha workers’ housing project in Ba Thien Industrial Zone developed by Compal Infrastructure Development and Management Company Limited. Of this, 15ha is dedicated to building workers’ housing with a total floor area of 305,000 square metres. It is now at technical infrastructure building stage.
A 4.3ha workers’ housing project in Khai Quang Industrial Zone which is developed by Bao Quan Construction and Investment Joint Stock Company. The project reports a total floor area of 40,000sqm and total investment capital of more than VND300 billion ($15.3 million) providing accommodations to 4,000 workers. It began construction in November, 2010 and was slated for completion in November, 2013.
Honda Vietnam’s 1ha housing project began construction in July 2010 and was slated for completion in June, 2011.
|Many workers at the nation’s industrial parks are working away from home|
What is the housing situation for low-income people in the province?
Following government regulations, the provincial Construction Department has proposed developers of commercial housing complexes of more than 10ha and new urban areas to set aside at least 20 per cent of total areas for building low-end residential complexes.
Developer Vinaconex Xuan Mai Joint Stock Company is handling a project on building two 11-storey, two 19-storey and four five-storey blocks accommodating 743 apartments for low-income people on 3.8ha in Vinh Yen city. Total floor area is around 70,000sqm. Construction of four five-storey and one 11-storey blocks was completed and all associated apartments were sold out. Construction of the second 11-storey block is getting underway.
Several other companies have registered to build low-end residential blocks in Phuc Yen town such as the Hoai Nam Construction and Investment Joint Stock Company, Trang Dat Investment Joint Stock Company and Dai Phat Company Limited.
Housing projects for industrial zones’ workers and low-income people all enjoy investment incentives regulated in prime ministerial Decision 65/QD-TTg and Decision 67/QD-TTg dated April 24, 2009 such as land use and rental exemption and reduction, and subsidies of site clearance costs.
How should the province’s future planning orientations for industrial zone workers and low-paid people housing projects take shape?
For established industrial zones, the Construction Department will cooperate with relevant agencies to check up, adjust and supplement existing planning schemes with specific areas for building workers’ housing.
For industrial zones which are in the start-up stage infrastructure developers would be required to define the real demand for workers’ housing, and establish and submit workers’ housing construction plans to competent bodies for approval.
The land catered for building low-end residential complexes in urban areas is embedded in the planning of new urban areas and commercial housing projects. Besides, the developers of commercial housing complexes of more than 10ha and new urban areas must set aside at least 20 per cent of total areas for building low-end residential blocks.
What will differentiate housing projects for industrial zone workers and those for low-income people in Vinh Phuc province?
At workers’ housing projects, the developers can only offer their products for lease and the house rentals are regulated to ensure the developers earning 10 per cent profit and the time for capital recouping of at least 20 years.
At low-income people’s housing projects, the developers can sell their products with a profit of about 10 per cent.
Facts show that building low-end residential blocks is seemingly more attractive than building workers’ housing blocks to property investors not only in Vinh Phuc but also in locations elsewhere.