DNVN - To ensure that industrial zone workers no longer have to live in substandard rented accommodations and that the 1 million social housing program does not "miss its deadline," obstacles and shortcomings need to be resolved soon.
Factors determining the success of industrial parks
On April 3, 2023, the Prime Minister approved Decision 338 on investing in the construction of at least 1 million social housing units for low-income earners and industrial park workers during the period 2021-2030.
Recently, Prime Minister Pham Minh Chinh chaired a conference to address difficulties and promote the development of social housing. Providing housing for low-income earners and industrial park workers has been identified as a key task in the country's socio -economic development.
According to Mr. Chu Duc Tam, Vice Chairman of the Board of Members of SM TECH VINA ENGINEERING Company, housing for industrial park workers is one of the important pillars for the sustainable development of each company, the industrial park, and the entire country.
"Housing for industrial park workers not only meets housing needs but also creates a chain of investment in industrial park-urban infrastructure, providing a convenient and complete investment environment for domestic and foreign investors."
"When workers have stable, adequate, and safe housing, they will have a secure life and will work better, with higher quality and productivity, and be more committed to the company. Convenient housing close to work also shortens travel time and reduces traffic congestion. Consequently, labor productivity also increases," Mr. Tam observed.
The development of housing for industrial park workers is slow despite high demand.
The Housing Law dedicates a chapter to social housing. The Real Estate Business Law, the Land Law (amended), and the Law on Credit Institutions (amended) have also introduced many mechanisms and preferential policies for building housing for industrial park workers.
A 120 trillion VND program for social housing with low interest rates has also been implemented. Decree 35 on the management of industrial parks and economic zones also requires that one of the conditions for investing in industrial park infrastructure is the planning of worker housing areas…
In Resolution No. 01 dated January 5, 2024, the Prime Minister requested that efforts be made nationwide to complete approximately 130,000 social housing units in 2024.
"These regulations and policies are both opportunities and decisive factors for the successful development of industrial parks and economic zones," Mr. Tam said.
However, according to Mr. Tam, the implementation of housing for industrial park workers is still slow, while the demand is very high. If there is no more decisive and vigorous action, and if policies and mechanisms are not revised soon to suit the situation, the goal of having 1 million social housing units may not be achieved.
Vietnam currently has 4.5 million workers directly employed in industrial parks and economic zones. Of these, 2 million workers need housing. According to the Vietnam General Confederation of Labor , the number of workers outside industrial parks with housing needs is even greater. A survey by the Confederation shows that over 60% of workers rent accommodation in areas lacking amenities, with inadequate living conditions and safety standards.
According to data from the Ministry of Planning and Investment, by the end of 2023, there were 416 industrial parks established nationwide, of which 293 were operational. However, very few of these industrial parks were developed comprehensively, integrating factories, company offices, housing for workers, commercial areas serving employees, parks with regulating lakes, and recreational areas for workers.
Establish a social housing fund and develop rental housing.
According to Mr. Tam, the policy of building 1 million houses for low-income people and industrial park workers is very suitable for industrial parks.
Many industrial park investors pursue the idea of planning integrated industrial park complexes with a synchronized industrial park ecosystem, including factories, company offices, housing areas for workers, commercial areas serving those working in the industrial park, parks with regulating lakes, and recreational areas for workers.
However, industrial park investors face significant challenges due to shortcomings in mechanisms, policies, regulations, and procedures. Only when the government truly focuses on and decisively addresses these obstacles will the issue of social housing and housing for workers be resolved, and the "1 million housing units" project be successful.
"We agree with the views on housing development for workers that the Prime Minister emphasized at the conference on March 16th. We hope that localities will seriously implement the Government's directives. Accordingly, localities must genuinely care about and allocate land for building housing for workers in industrial zones. The socio-economic development plan of each locality should include targets for the development of social housing and housing for workers."
"Social housing – housing for industrial park workers – must ensure quality, safety, environmental hygiene, and adequate infrastructure for healthcare, education, social services, and other services. It should also be built near industrial parks, not in remote, isolated areas inconvenient for workers' daily commutes, simply because of the low price," shared a representative from SM TECH VINA ENGINEERING.
Based on the actual needs and income of workers, Mr. Tam believes that it is necessary to increase the types of rental housing with more favorable conditions than current programs. A rental-based model would be suitable for industrial parks. At the same time, it would allow businesses to be the main entities in organizing housing for their employees. Incentives and an increased proportion of rental housing would be key factors in accelerating the project to build at least 1 million social housing units.
At the same time, the State needs to conduct research to establish a social housing fund as soon as possible. It is necessary to promptly issue decrees guiding the Law on Real Estate Business, the amended Land Law, the Law on Credit Institutions, and amendments to tax laws… to ensure consistency with the amended Housing Law.
In addition, interest rates on loans from the 120,000 billion VND support fund need to be lowered to suit the practical conditions in each stage. Loan procedures also need to be made more convenient.
To ensure that industrial park workers no longer have to live in substandard rented accommodations, and to prevent the "one million social housing" program from failing, obstacles and shortcomings need to be addressed promptly. As the Prime Minister stated: "The most important thing is that when implementing the program, we must dare to think, dare to act, dare to take responsibility, and be flexible, proactive, and creative in applying mechanisms, policies, and laws."
Nguyet Minh
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