Japanese corporation wants to invest in developing low-cost housing in Vietnam

(NLDO)- In 2020, Ho Chi Minh City had nearly 17,000 affordable apartments supplied to the market, but in the past 3 years, there were mainly luxury apartments.

On the afternoon of November 13, the Ho Chi Minh City Real Estate Association (HoREA) organized a meeting and connection program between a number of Japanese companies and corporations such as: Japan Housing Finance Corporation (Japan Housing Finance-JHF) and Sekisui Heim Corporation Japan, Thai SCG - Heim Japan Member Company and a number of large real estate companies and enterprises in Vietnam.

Mr. Le Hoang Chau, Chairman of HoREA, said that Vietnam has a policy to develop 1 million social housing units, especially the policy of eliminating temporary housing units and houses in need of repair of up to 400,000 units. According to the initial survey, Ho Chi Minh City needs 200,000 social housing units and 60% of immigrants, workers, laborers... want to rent long-term.

Japanese corporations and Vietnamese real estate companies interact at the meeting.

In the 2016 - 2020 period, Ho Chi Minh City has only achieved nearly 70% of the plan. In the 2021 - 2025 period, it has only achieved 2.9% of the plan. Currently, Ho Chi Minh City is implementing 8 social housing projects with nearly 6,400 apartments. Many migrant workers and laborers have to live in boarding houses. The city currently has more than 61,000 boarding houses, with 560,000 rooms, providing housing for about 1.4 million people.

In 2020, Ho Chi Minh City had nearly 17,000 affordable houses supplied to the market, but in the past 3 years, the supply to the market was mainly high-end housing.

Representative of SCG Heim (Japan), Mr. Ryuji Saimon, shared that he really wants to cooperate with Vietnam to build affordable houses, social housing. Currently, his company is making prefabricated houses. In Thailand, the factory has produced with modern technology, which can be exported to Vietnam with 80% prefabricated houses and Vietnam only completes the remaining 20%.

However, according to Mr. Le Hoang Chau, this model is suitable in rural areas and is currently suitable for the removal of temporary houses and repair of government houses. However, cost will be an issue.

Mr. Le Hoang Chau emphasized that at this stage, foreign investors participating in the NƠI are very favorable because they will be given incentives on corporate income tax and VAT up to 50%. Currently, HoREA is proposing a reduction of 70% for social housing. In addition, regarding credit, there will be incentives at 4.8% with a loan term of 10-15 years for investors and 20 years for buyers.

Access to land is not restricted in area, as long as it is in accordance with planning. The government is asking Ho Chi Minh City to allocate suitable land funds to implement social housing, so many businesses will participate.

According to Mr. NƠXH , Vietnam is making efforts to involve private units and corporations in developing social housing and affordable housing. Therefore, it has been actively directing the removal of difficulties and obstacles for 60 projects.

Source: https://nld.com.vn/tap-doan-nhat-ban-muon-dau-tu-phat-trien-nha-gia-thap-tai-viet-nam-196241113173531523.htm