Want to be in the loop?
subscribe to
our notification
Business News
PROPERTY MARKET MUST SHIFT TOWARDS LOW-COST HOUSING: CONSTRUCTION MINISTRY
The Ministry of Construction has proposed reforming administrative procedures to create favourable conditions for the development of low-cost, compact social and commercial housing. This is one of the solutions suggested in the ministry’s latest report, submitted to the National Assembly ahead of its May session starting on May 20.
The ministry also asked the Prime Minister and the Standing Committee of the National Assembly to consider adding public investment capital to boost development of social housing.
The National Assembly and Government should amend and supplement policies on developing social housing projects for workers, the ministry said.
According to the report, under the social housing programme in urban areas nationwide, 198 projects have been completed with more than 81,700 units. Another 226 projects are under construction with a total of about 182,200 units.
Meanwhile, the social housing development programme focused on low-income people in urban areas has completed 98 projects with a total of about 40,700 apartments, reported vneconomy.vn.
About 100 social housing projects for workers in industrial parks have been finished with about 41,000 apartments.
The ministry said the structure of housing products had been adjusted towards low-cost housing but the change had been inadequate to meet demand.
The market has had abundant supply of large, expensive, high-end housing products, but has lacked affordable options that the majority of people in urban areas need, according to the report.
20-30 per cent of the customers in the local market can afford property products priced from VND25 million per sq.m, while 70-80 per cent need affordable or social housing products priced below that threshold. However, supply of low-cost housing has not met demand.
Prices of real estate products, especially housing prices, are not stable.
Since the end of 2016, social housing projects have struggled to secure loans needed to meet their development schedules.
The construction ministry said it was difficulty to secure funding for social housing because the social housing support programme was not on the list of programmes that have priority to use capital from the State budget.
Low-income households had seen their incomes rise, but still struggleed to pay for housing even when they received support from the State.
The report also said local authorities in the provinces of Quang Ninh, Khanh Hoa and Kien Giang had worked hard to stabilise their local property markets.
According to the report, the real estate market has shown stable development in 2018 and the first quarter of this year after several slow years since 2013.
Source: VIR
Related News
CUSTOMS BUDGET REVENUE EXPERIENCES 3% DECLINE IN Q1
Vietnam’s import and export value reached a total of US$145.59 billion in the first quarter (Q1) of 2024, marking a year-on-year growth of 18.2%. However, the customs budget revenue saw a 3% year-on-year decline, amounting to VND71,520 billion in the quarter, thereby achieving 19.1% of the full-year target.
RAPID LAW IMPLEMENTATION MAY PROPEL MARKET FORTUNES
“Investors and developers are looking forward to the implementation of the new law, which will remove obstacles for a range of projects that are struggling due to stalled procedures and lack of legality. For them, the earlier the better,” he said.
NATION URGED TO BUILD ON ECO-IP MODEL
Industrial parks (IPs) involved in an initiative that aims to help push them into the realm of being classed as eco-parks have seen improvements across a string of indicators, according to a review event in Ho Chi Minh City last week.
YEN LU INDUSTRIAL PARK: NEW DESTINATION FOR INVESTORS
Bac Giang is a destination chosen by many domestic and foreign investors thanks to its locational advantages and its most opening and favorable investment policies. Assisted by local authorities, Capella Land Joint Stock Company has effectively invested in industrial zones, especially Yen Lu Industrial Park - a new destination for investors, to contribute to the province’s success in investment attraction.
DEMAND SOARS, POWER ECONOMY URGED
The serious electricity shortage in the northern region in May-June 2023 is a valuable lesson on the importance and pivotal role of ensuring electricity security for socioeconomic development.
OPTIMIZING LEGAL AND REGULATORY FRAMEWORKS FOR EFFICIENT PUBLIC INVESTMENT DISBURSEMENT
According to the Ministry of Planning and Investment, a 1% increase in public investment raises GDP by 0.058%, and each VND1 disbursed stimulates an extra VND1.61 from the non-state sector. However, plan implementation often falls short at around 80% annually, despite government efforts.