Door needs to open to cheap housing

17:01 | 31/10/2011
Capital shortages are discouraging enterprises from building houses for workers.
illustration photo

Hanoi has eight industrial zones with 110,000 workers, but there are only four worker housing projects meeting the demand for housing 16,300 workers.

Binh Duong, is the leading province in developing houses for workers with 22 industrial zones and total 200,000 workers. But, it only meets the need for housing for over 27,700 workers equal to 12 per cent of the workforce.

In the same situation, the demand for housing in Ho Chi Minh is also high. The city has 15 industrial zones and 230,000 workers, while 70 per cent workers lack housing.

According to the Ministry of Construction (MoC), 90 per cent of workers in industrial zones must rent accommodation and live in poor housing conditions.

In the past two years, 47 worker housing projects appeared in Vietnam’s 63 provinces. However, until now, the firms has just developed 25 projects, in which, accomplished nine projects.

Vice chief of the MoC’s Agency for Management of Housing and Estate Market Nguyen Trong Ninh said: “Building house for workers is still slow because of enterprises’ capital limits.”

Ho Chi Minh City Export-Processing and Industrial Zones Management Board director Vu Van Hoa said: “Investing in building house for workers takes long time to retrieve capital. Enterprises only are permitted to borrow capital for a short time.”

Toan Phat Investment Construction Company Le Van Toan director said: “In the context of Vietnam’s economic difficulties, enterprises must borrow from banks with high lending rates which is a deterrent to fund housing projects.”

By Nguyen Chung

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