Social housing breaking through to sustainable development

For years, investments into social housing development in Binh Duong province have been at the lead nationwide. The establishment of large-scale and eye-catching social housing zones has been of new breakthroughs aiming for social well-fares realized by practical decisions to offer settlement for immigrant workers, contributing to investment luring and economic development.  

Dinh Hoa Social Housing Area in Thu Dau Mot city
To meet demands

According to housing development in 2016-2020, over 2 million square meters of social housing floor are in need in Binh Duong without taking into account public housing, housing for revolutionary contributors, and housing for resettlement. Up to date, social housing constructions have covered about 1.3 million square meters, meeting 65% of the target plan. Huynh Pham Tuan Anh, Deputy Director of Binh Duong provincial Department of Construction said: “Urban development in Binh Duong province is modeled by industry-urbanity-services.

According to the adjusted planning for development of industrial parks and clusters with orientation to 2020, 34 industrial parks and clusters covering 11,465 hectares have been developed inh Binh Duong province, bringing about the concentration of population from various localtions moving in to work and settle down. It is estimated that immigrants are accounted for more than half of the total population of the province at about 1 million people. As the matter of fact, housing demands in Binh Duong are large. Facing the reality, Binh Duong provincial authority has extended policies to support housing, especially the call for investors to join in social housing development for sales and lease, meeting the demands of working people.

Anh added: “The model of social housing development of Becamex on the basis of clean land fund has been put into use and sales at bargaining prices suitable to income of the majority of working people in combination with house loans of VND 100-200 million per 30 square meters of housing to attract buyers.” Binh Duong provincial People’s Committee approved the project of Becamex Worker Housing in 2018-2021 on 141 hectares, equivalent to 1.8 million square meters of housing floors. Nguyen Hoang Vu, Deputy General Director of Becamex IDC, hairman of Binh Duong Real Estate Society informed that Becamex Worker Housing caught the attention and earned the direction of Binh Duong provincial People’s Committee and local departments to proactively reflect social feedbacks. In fact, thousands of workers and low-income people have purchased or hire the housing to settle down.

Besides, the current 22 projects of commercial housing have been preserved with 20% of land or 64.53 hectares to construct social housing. Statistically, of 11 social housing projects funded beyond provincial budgets, the lowest and highest prices are respectively VND 5.6 million and VND 14.89 million per square meter. Up to date, Binh Duong provincial branch of Bank of Social Policies has signed credit loans and disbursed to 101 clients VND 42 billion while Binh Duong provincial Housing Development Fund has disbursed loan of VND 73 billion to one social housing project.

Supporting loans

During the current industrialization and modernization process, social housing demands among urban subjects are getting greater, particularly among workers at industrial parks and clusters. It is practical to implement socialization of social housing for workers at industrial parks and clusters. The recent social housing development in Binh Duong province failed to satisfy reality needs. Some supporting programs extended by the Prime Minister to support social housing development have been relatively slow without mobilizing much economic components and social resources for social housing construction. In general, social housing projects has currently fallen short at attracting many investors. 

Huynh Pham Tuan Anh also added: “Binh Duong provincial authority has proposed to the government to consider the adding up of capital resources for favorable loans for social housing construction and purchases. In the meantime, the loan term is considered to be expanded to 20 years and more with flexible loan policies, procedures, and interest rates for easier access to loans for social housing purchase and rent.”

The social housing constructions created new breakthroughs heading to social well-fare and bring up opportunities for working people. It is hopeful that along with government’s policies, determination and proposed measures in Binh Duong, social housing shall be more and more developed to attract more participants and settle down human resources for new investment luring and promoting sustainable socio-economic development. 

Reported by Phuong Le - Translated by Vi Bao