Bình Dương in Vietnam encourages businesses to invest in social housing

The southern province of Bình Dương, Vietnam has called for investment in the development of social housing projects due to a shortage of supply.

Mai Hùng Dũng, permanent vice president of the Bình Dương People’s Committee, said that social housing development in the province has not yet met demand, nor has it attracted much investment.

Therefore, Bình Dương will give priority to several companies that have land and investment funds for the development of social housing.

The province also calls on the economic sectors to invest in the construction of social housing and encourage investors in existing social housing projects. For example, social housing projects for workers in industrial parks would be exempt from land use taxes and would have value added tax and corporate tax exempt or reduced.

Investors in these projects would also obtain preferential loans from policy banks and commercial credit institutions and would receive financial support to build technical infrastructure systems.

At the same time, the province has proposed that the government pump capital from the state budget to the Social Policy Bank for eligible workers to obtain loans to buy or rent social housing products at preferential interest rates.

The province has also requested the government to establish an independent mechanism for social housing projects in order to attract investors.

According to the province, the government should also clarify the investor selection process for social housing construction projects stipulated in the Housing Law, and simplify the investment, land and construction procedures for such projects. In addition, it is necessary to have a tax exemption and reduction for investors who build housing for workers.

In addition, it is necessary to have land, financing and construction incentives for households and individuals to invest in the construction of rental housing. That would improve the quality of rental housing and the quality of life for workers.

The province also calls on the economic sectors to invest in the construction of social housing and encourage investors

The law does not allow investors to develop housing projects in industrial zones. However, it is necessary for industrial zones to have housing for workers with basic social infrastructure facilities, especially during the period of the COVID-19 pandemic, as production must be maintained, but also the health of workers must be guaranteed. Workers.

The province has proposed policies to encourage investment in the development of housing for workers with other services such as nurseries, supermarkets and cultural and sports facilities. This would improve the standard of living of workers in industrial areas.

Social housing development

The province requires investors in 31 existing projects, with an area of ​​about 100 ha, to comply with the social housing construction schedule. The province will withdraw licenses from projects that are delayed.

Meanwhile, many real estate companies have re-invested in low-income social housing projects in Bình Dương, filling the supply gap.

On September 23, the Housing Investment and Urban Development Corporation (HUD) will launch a residential project located in the ecological urban area of ​​Chánh Mỹ, Thủ Dầu Một city. This project has 978 apartments with a total area of ​​about 83,000 square meters.

According to the Bình Dương Construction Department, in the period 2016-2020, the province planned to invest in social housing projects with a total area of ​​2 million square meters, to meet the housing needs of workers in the province.

From 2021 to 2025, the province aims to have 100,000 homes for workers with a total area of ​​4.2 million square meters.

In addition, the land fund for social housing has not yet been built in 32 commercial housing projects with about 100 ha.

Lê Hoàng Thắng, a laborer working in the city of Dĩ An, said that the province’s social housing projects are mainly invested by the industrial, urban and transport infrastructure developer Becamex IDC Corp, which is located in Thủ Dầu Một , Thuận An, Bến Cát and Bàu Bàng, but not yet in the city of Dĩ An.

The province requires investors of 31 existing projects, with an area of ​​about 100 ha, to comply with the social housing construction schedule

Furthermore, most current social housing is quite small compared to a family of four, while its quality and management are not assured.

Nguyễn Thanh Huy, Vice Chairman of the Dĩ An City People’s Committee, said that Dĩ An is the gateway city to Bình Dương, so it has an important position in urban development. The city has more than 500,000 inhabitants, including some 300,000 temporary residents.

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The city has six industrial zones and an industrial cluster that attracts 245,000 workers. However, the supply of housing remains limited.

Currently, the city has two social housing projects under construction to provide 1,204 apartments in the future.

Between 2026 and 2030, Dĩ An will also have three housing projects with a land fund for social housing.

Bùi Ngươn Phong, CEO of the Lê Phong Group, said that his company is currently executing the Tân Đông Hiệp social housing project in the city of Dĩ An. The project has about 1,000 apartments with an area between 30 and 64 meters squares. The project is expected to be completed in the fourth quarter of 2023.

However, many companies no longer want to invest in social housing construction due to the rising cost of land and building materials and the lack of favorable policies and procedures, Phong said.

Article republished from the Vietnamese state media VNA as part of an agreement between both parties to share content. Link to original article:https://vietnamnews.vn/economy/1339829/binh-duong-encourages-enterprises-to-invest-in-social-housing.html