HCM CITY (VNS) — Persons and households providing affordable housing for low income earners can benefit from Government incentives regardless of which sector they operate in, said Construction Minister Trinh Dinh Dung.
He said that although persons and households providing housing for rent only accounted for a modest portion compared to real-estate firms, smaller providers had helped to meet demand from workers, particular in major cities like HCM City.
Dung made the statement when visiting State-funded and enterprise-built rental housing for workers in Thu Duc District's Linh Trung Ward and Tan Thuan Processing Zone in HCM City on Wednesday.
The Construction Department reports that the city has nearly 1.5 million square metres of affordable housing, equating to 473,800 parcels of accommodation for workers and labourers.
Housing built by the State and enterprises reportedly accounts for 40,400 units of accommodation, while the remainder is being supplied by households and individuals.
"The Government should recognise and promote the role of the public in developing affordable housing," Dung said.
He urged authorised agencies to raise awareness of housing development planning and offered help with administrative procedures, preferential loan access and designs to meet regulatory requirements for affordable housing.
"When investors develop housing that meets regulated standards, they are eligible to receive Government incentives, such as preferential loan access and reduced personal income tax," he said.
About 80-90 per cent of workers in the city's industrial and processing zones were living in accommodation built by individuals or households, he said, adding that a majority of rental houses had failed to meet hygiene and living standards.
Landlord Huynh Thi Thanh in Linh Trung Ward said her family had 21 available 12sq.m rooms for VND700,000 (US$33) per month.
"Many people want to rent my rooms," she said, adding that access to preferential loans would encourage her to expand the business.
Pham Thi Hang, who works at the Tan Thuan Processing Zone, said she pays VND250,000-290,000 ($12-14) per month to share a rental apartment at a workers' residence zone built by the Sai Gon Development Joint Stocks Company.
"I have lived here for four years and I will stay because it is safe and clean," she said. — VNS