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VietNamNews

Ministry eyes housing fund

Update: March, 17/2012 - 08:51

HA NOI — The Ministry of Construction is planning a housing development fund in an effort to mobilise additional capital resources.

Two years ago, when the ministry initially came up with the idea, Deputy Minister Nguyen Tran Nam said that if 9 million workers nationwide contributed 5-7 per cent of their monthly salaries to the fund, it could ad up to billions of dong.

It was eventually decided that only those benefiting from such a fund would have to contribute to it in order to counter previous objections.

Pham Si Liem, deputy chairman of the Federation of Civil Engineering Associations, said the ministry should enrol State policies to regulate and create capital for the fund. For instance, it should tax people living in large houses or those having more than one property.

He added that provinces and cities should clear land and develop infrastructure to lure urban development and social housing investors.

Construction had been slow due to difficulties in obtaining capital from Government bonds, Liem explained.

Trinh Huy Thuc, chairman of the Viet Nam Real Estate Association, said enterprises would not be allowed to contribute to the fund seeing as they could find other ways to deal with production demand.

The Ministry of Construction expects the development fund to help low-income earners become homeowners.

Among a range of sources such as profits drawn from the State lottery, the fund would also receive 10 per cent of land-use rights fees collected from retail and residential areas along with funds from central and provincial State budgets.

Individuals wanting to support such an initiative can make a down payment of at least 30 per cent of the value of the house or apartment they intend to purchase. Fund members must contribute capital to the fund on a monthly basis for at least five years before getting a loan. ­­­­­— VNS

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