I long for a normal house.

Ms. Huynh Thi Thu Ha, Deputy General Director of Lac Ty Co., Ltd., presented her proposal at the meeting - Photo: Vu Thuy

This shortcoming was mentioned by many at the "Accompanying Businesses" program organized by the Ho Chi Minh City Federation of Labor in celebration of Workers' Month 2024. Also in attendance were Vice Chairman of the Ho Chi Minh City People's Committee Nguyen Van Dung and President of the Ho Chi Minh City Federation of Labor Tran Thi Dieu Thuy.

The annual personal income tax deduction could be adjusted based on the regional minimum wage coefficient, with a slight increase each year being more appropriate.

Ms. HUYNH THI THU HA (Lac Ty Co., Ltd.)

Mr. Nguyen Thanh Tai, Human Resources Director of Dai Dong Tien Company, said that many people who have been with the company for 10-20 years have a need to buy social housing. They hope to have a home, a normal place to live, while staying in Ho Chi Minh City for a long time. "About 30-32% of the company's employees need to buy social housing but don't know where to find information," Mr. Tai said.

Ms. Tran Thi Dieu Thuy said this is indeed a long story where "talking about one thing leads to another." Low-income earners are those who do not pay personal income tax, but many families of civil servants and workers in the city have to strive to earn an income at the taxable level just to make ends meet.

"They are in a situation where they cannot afford to buy regular housing but are not eligible for social housing policies," Ms. Thuy stated.

Ms. Huynh Thi Thu Ha, Deputy General Director of Lac Ty Co., Ltd., suggested that the personal allowance deduction should be changed because, given the inflation and rising living standards in Ho Chi Minh City, applying a single rate to all localities is inappropriate.

Ms. Ha cited that since the Personal Income Tax Law was enacted in 2009, the regional minimum wage has increased 15 times, but the personal deduction has only been adjusted twice, from 4 million to 9 million VND and currently at 11 million VND. Similarly, the dependent deduction has also only been adjusted twice, from 1.6 million to 3.6 million VND and currently at 4.4 million VND per person.

Regarding housing support policies, Nguyen Duc Leinh, Deputy Director of the State Bank of Vietnam's Ho Chi Minh City branch, said that there are currently two channels supporting workers in borrowing to buy houses: the Social Policy Bank or commercial banks.

The Social Policy Bank provides loans to low-income earners, while the 130 trillion VND package from banks provides loans to investors for the construction of social housing and to buyers at relatively low interest rates.

"Housing for low-income earners should be affordable, but currently there are almost no projects that allow workers to borrow money to buy," Mr. Leinh said.

Policy reforms are necessary, but the actual conditions in Ho Chi Minh City are very different from other localities. Many proposals from businesses and trade unions in Ho Chi Minh City are difficult to apply nationwide.

"But we cannot fail to propose it because if we don't, the policy will go against the reality of Ho Chi Minh City," Ms. Tran Thi Dieu Thuy emphasized.

Source: https://tuoitre.vn/mong-mot-mai-nha-binh-thuong-20240512094659722.htm