|Dong Mo - Dai Kim social housing project in Hoang Mai district, Hanoi
In Vietnam, the demand for social housing is urgent, especially in Hanoi and Ho Chi Minh City, as the country is entering its golden population period with 70 percent of the population at working age. Meanwhile, land for housing, transportation, and services remain limited.
In 2011, the Government issued the national housing development strategy for 2020. The Ministry of Planning and Investment recently submitted a report to the Prime Minister on the assessment of a proposal on a project on building general social housing policies for the 2021-2030 period, which uses non-refundable aid provided by the Republic of Korea’s (RoK) Government via the Korea International Cooperation Agency (KOICA).
Deputy Construction Minister Nguyen Van Sinh said social housing development so far has only met about 33 percent of the housing strategy’s target of 12.5 million sq.m of social housing. This is attributable to limited capital, a lack of attention from local authorities, and improper mechanisms and policies that are yet to encourage realty developers to invest in social housing.
A Korean expert said since the 1970s, the RoK Government has invested in housing companies and launched effective models to develop small-scale houses for low-income households.
The Government also worked to stabilise the housing market for low-income families by increasing supply and tightening real estate speculation, which has afforded many citizens chances to own homes at reasonable prices.
Dr Moon Hyo-gon, the project’s director, said major beneficiaries of social housing are low-income households in urban areas and workers in industrial zones, adding that the project will analayse the housing demand during urbanisation, and review relevant laws and mechanisms in Vietnam, towards the goal of outlining a strategy for social housing as part of the national housing development strategy for 2021-2030.
He suggested that Vietnam adopt a sustainable financial system, pooling together both private and foreign resources for the effort.