Opening doors for workers to own housing

With the strong support of the government, active participation from the banking system, and the attention of provincial leaders and businesses, access to social housing for workers and low-income individuals is widening.

Mobilizing multiple resources

Binh Duong is a region that has developed numerous industrial parks, attracting a large workforce from outside the province to live and work. In recent years, the province has prioritized housing for workers, recognizing it as a key aspect of its socio-economic development. The Provincial Party Committee, People's Council, and People's Committee have implemented resolutions, programs, and plans for housing development in both five-year and ten-year phases to address the housing needs of low-income workers. This includes a focus on developing social housing, encouraging investment from businesses, and creating social housing in new urban areas.

As of now, Binh Duong has made significant progress in social housing development, contributing to social security and the socio-economic growth of the region, and establishing itself as a leader in social housing initiatives in the country. Specifically, during the period from 2016 to 2021, Binh Duong added 18 social housing investment projects, resulting in a total floor area of 1.33 million square meters. In 2024, the province plans to develop nearly 15,900 apartments covering 54.1 hectares, which is equivalent to 1.2 million square meters of floor space.

Mr. Vo Van Minh, Deputy Secretary of the Provincial Party Committee and Chairman of the Provincial People's Committee, stated that developing social housing and housing for workers is a crucial component of the province's socio-economic development policy. This initiative aims to attract high-quality labor by providing workers and laborers with access to affordable housing. It is a collective responsibility involving the entire political system, state management agencies, businesses, and the community. Therefore, provincial leaders are committed to promoting the development of viable, healthy, and sustainable social housing.

Currently, Binh Duong is allocating more land for the development of worker housing. The province's goal is to create 160,325 social housing units by 2030 while mobilizing resources to support this housing development. To achieve this target, Binh Duong is working to gather resources from various sources to meet the housing needs of workers and low-income individuals, thereby helping to stabilize their living conditions and ensure social security.

Solving the problem of home buying capital

The Government has issued Decree No. 100/2024/ND-CP, which will take effect on August 1, 2024. This decree provides guidance on the Housing Law 2023 regarding the development and management of social housing. It includes regulations on borrowing capital to purchase social housing through the Bank for Social Policies. According to the decree, the maximum loan amount available for purchasing social housing from the Social Policy Bank is 80% of the value of the house purchase or hire-purchase contract.

To support the project aimed at building at least 1 million social housing apartments for low-income individuals and industrial park workers between 2021 and 2030—approved by the Prime Minister—Kim Oanh Group is investing in the K-Home New City project in Binh Duong New City. Ms. Dang Thi Kim Oanh, Chairwoman of Kim Oanh Group, highlighted that the group has introduced a preferential policy for employees under the age of 40 who have signed a labor contract for one year or more. This initiative aims to assist them in home ownership.

"When employees have a home and no longer need to live in rented accommodations, they will be more motivated to work and contribute," said Ms. Oanh. “For example, if a working couple has savings of 50-70 million VND, we will design a suitable housing model that is fully furnished and ready for immediate occupancy, with selling prices starting from 778 million VND per apartment, along with special preferential policies.”

Research shows that customers who opt for the standard payment method under Kim Oanh Group's project will receive an immediate discount of 2% off the total contract value. After that, customers will pay 10% of the first installment (equivalent to 76,244,000 VND) of the contract value. Kim Oanh Group will support an advance payment of 50%; 90 days later, customers will pay another 10% (also equivalent to 76,244,000 VND), with Kim Oanh Group continuing to support 50%. The employee can make this advance payment in installments of about 5 million VND each month within 15 months or until the house is handed over. After receiving the house, the remaining 80% of the amount will be financed by the Military Commercial Joint Stock Bank or the Social Policy Bank at an interest rate of 6.1% per year. Therefore, each month, customers will only need to pay about 3.3 million VND (covering both principal and interest).

Ms. Dang Thi Kim Oanh noted that, thanks to this supportive policy, many employees from Kim Oanh Group have registered to purchase homes. “We hope that not only employees of Kim Oanh Group but also all workers from other businesses will benefit from such practical support programs. Although it is social housing, K-Home New City has been developed to meet Singaporean urban standards, complete with high-class amenities. K-Home New City is even more upscale than previous commercial housing projects by Kim Oanh Group. In addition to K-Home New City, Kim Oanh is committed to developing a social housing chain under the K-Home brand to provide more housing opportunities for many workers," Ms. Oanh stated.

Reported by Phuong Le - Translated by Ngoc Huynh