| Ministry suggests housing assistance for poor people |
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(Listed Jul 1, 2008) |
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 The Ministry of Construction recently submitted to the Government a housing scheme for nearly 700,000 needy households and a housing development scheme for low-income earners.
Vietnam’s urbanization rate is very high, 25%-30% a year, which brings about a rapid increase of the urban population and results in a serious shortage of houses.
Under the proposed scheme, VND 10 trillion, including VND 4.67 billion from the State budget and VND 5,338 billion from the Social Policy Bank, will be raised to build houses for nearly 700,000 poor families nationwide. The scheme would be implemented between 2008 and 2011.
The State would provide funds to construct 5-6 storey apartment buildings for the poor. Houses of at least 24 sq.m would also be built for needy people. Local authorities would submit the list of poor households which need houses, who would then be granted VND 7 million and lent VND 8 million in order to build houses. Families in remote areas would receive an additional VND 1 million for construction material transport fees.
The Government is also considering a housing development plan for low income earners, under which these people could buy or lease houses in installments over 30-40 years.
These schemes are commendable, but experts say it would be very difficult to implement them due to the large capital needed. Some previous housing development projects for low-income earners in Hanoi failed when low-income earners couldn’t afford to buy or rent the houses. As well, private investors are not keen on these type of projects.
The Head of the Construction Ministry’s Housing Management Agency, Nguyen Manh Ha, said the scheme’s success depends upon provincial authorities’ determination. The Construction Ministry has asked the Government to give preference to developers of housing development projects for the poor, and submitted its evaluation of a successful housing development plan for the poor in Binh Duong Province.
It is hoped that this scheme will help improve the accommodation of the poor.
(Source: NLD)
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