Construction Ministry lowers social housing target

Under its latest proposal to the Government, at least a million housing units will be built for low-income earners and workers in industrial parks by 2030 at a cost of VND849.5 trillion (US$36 billion).

Most cabinet members have approved the proposal.

The ministry had earlier put forth a plan for constructing over 1.4 million units at VND1,130 trillion, but many in the government had called for reconsidering the number and financial resources needed to implement the plan.

The ministry said social housing development should not depend on public funding, and other sources should be tapped instead.

Incentives will be offered for private investors to develop social housing, and provinces and cities will also be urged to invest.

Investment in social housing is expected to help revive the real estate market, which is in a slump.

The has called for a preferential credit package of VND110 trillion equally divided between home buyers and social housing developers.

The State Bank of Vietnam is considering another package for social housing.

The four state-owned banks have already agreed to set aside VND120 trillion for lending to social housing developers and buyers at interest rates that are 1.5-2 percentage points lower than the market average.