Tuesday, January 25 2022


HCM City seeks $1.66b to build affordable housing for workers

Update: November, 20/2021 - 11:57


A social housing development in HCM City. The city is seeking US$1.66 billion of investment to build affordable housing for workers over the next five years. Photo baodauthau.vn

HCM CITY — HCM City authorities are seeking VNĐ37.6 trillion (US$1.66 billion) to build affordable housing for workers over the next five years, of which State revenue will account for no more than 5 per cent of the total investment, according to the Department of Construction.

According to a department proposal for 2021-25, the city will need 800.9ha for commercial housing and 173.5ha for social housing at a cost of VNĐ239.7 trillion ($10.6 billion) and VNĐ937.7 trillion ($41.6 billion), respectively.

The proposal calls for an average housing area per person of 23.5 square metres by 2025 from the current 20.65 square metres.

Under the proposal, the city will build more than 18,000 affordable apartments to meet the needs of workers over the next five years.

These include five social housing projects for workers (4,352 apartments) in Thủ Đức City with a total floor area of ​​220,436 square metres.

Two social housing projects (370 apartments) with a total floor area of 29,448 square metres will be developed in inner city areas (including districts 4, 5, 6, 8, 10,11, Bình Thạnh, Gò Vấp, Phú Nhuận, Tân Bình and Tân Phú).

Five social housing developments (3,955 apartments) with a total floor area of ​​290,177 square metres will be built in districts 7, 12, and Bình Tân District.

Eight projects (9,594 apartments) with a total floor area of ​​546,170 square metres will be developed in suburban districts Bình Chánh, Hóc Môn, Nhà Bè, Củ Chi and Cần Giờ.

Speaking at a recent meeting, Secretary of the HCM City Party Committee Nguyễn Văn Nên said the city planned to build one million affordable units to replace aging and low-quality housing for low-income people. 

He said it would provide land to enterprises to build housing near industrial parks and export processing zones for the workers.

Thủ Đức City last month began a social housing project with 1,000 apartments worth VNĐ1.2 trillion as part of the city’s plan to build one million affordable units for workers.

About 1.3 million workers and labourers in the city need housing. Most of the workers live in rented rooms and spend 10-15 per cent of their income to pay for rent, the department said.

The average worker’s housing area is only 14 square metres, costs VNĐ1.6 million to rent, and is often shared by four people.

A number of projects to build social housing for workers have been implemented in Linh Trung I, Linh Trung II, and Tân Thuận export processing zones, Tân Tạo Industrial Park, and in new industrial zones.

According to statistics from the department, the city has built 15 housing projects for workers, covering 47ha, since the end of 2019.

The number remains modest compared to the housing needs of millions of migrant workers in the city. The biggest challenge in building social housing for workers is the lack of capital and land.

According to the proposal, the city also plans to build residential complexes along the first metro line running 20 kilometres from Bến Thành Market in District 1 to Suối Tiên Theme Park in Thủ Đức City.

The new housing projects must align with the development of technical and social infrastructure and availability of land for public transport and parks.

They must also address city problems such as flooding and congestion, and improve city landscapes and residents’ quality of life. — VNS 

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