Why is it difficult to attract investment in social housing?

Although the whole country has built 725,146 social housing units (equivalent to 72.5% of the 1 million social housing unit project), this type of housing is still not attractive to investment, especially in the Central and Central Highlands regions.

On the afternoon of May 19th, in Quang Ngai , Construction Newspaper, in collaboration with the Quang Ngai Provincial People's Committee, organized a seminar titled "Social Housing in Central and Western Vietnam: Current Situation, Mechanisms, and Solutions for Promotion".

At the seminar, Ms. Nguyen Thi Hong Nga, Editor-in-Chief of Construction Newspaper, stated that the development of social housing is a key task that the Government, the Prime Minister, and the Ministry of Construction are particularly concerned about in order to ensure social security and improve the quality of life for citizens, workers, and low-income earners. According to Ms. Nga, the plan to build at least 1 million social housing units in the 2021-2030 period is being accelerated by the Ministry of Construction and local authorities.

At the workshop, Mr. Nguyen Cong Hoang, Vice Chairman of the Quang Ngai Provincial People's Committee, announced that on the morning of May 19th, the province launched a social housing project within the Trade Union Housing Complex in Tho Phong commune, with a scale of over 1,200 apartments.

According to Mr. Hoang, the demand for housing for workers, laborers, and low-income earners in Quang Ngai is growing. Therefore, the province has identified the development of social housing as an important political task, contributing to ensuring social security and improving the quality of life for its people.

A seminar on social housing was organized by Construction Newspaper and the People's Committee of Quang Ngai province on the afternoon of May 19th in Quang Ngai.

PHOTO: PROVIDED BY THE ORGANIZING COMMITTEE

According to a report by the Ministry of Construction, as of April 10th, the country had started construction on an additional 40 social housing projects with a scale of 36,590 units, reaching approximately 23% of the target of 158,723 units for 2026.

To date, the whole country has invested in the construction of 786 social housing projects with a total scale of 725,146 units, equivalent to 72.5% of the target of the scheme to build 1 million social housing units for low-income people and industrial zone workers in the period 2021 - 2030.

Despite achieving many positive results, the development of social housing still faces numerous challenges. Mr. Nguyen Phuc Nhan, Director of the Department of Construction of Quang Ngai province, stated that the number of completed projects and apartments in the province still does not meet the increasing demand of residents and workers.

A social housing project in Da Nang city.

PHOTO: PROVIDED BY THE ORGANIZING COMMITTEE

According to Mr. Nhan, some projects are being implemented slowly, and attracting businesses to invest is not strong due to low financial efficiency. Social housing projects are subject to profit margin restrictions, while the costs of construction materials, labor, loans, and infrastructure investment are increasing, making many businesses hesitant.

Furthermore, access to preferential credit is difficult, creating financial pressure for both developers and homebuyers. Meanwhile, the group with the greatest need is mainly low-income earners and workers, whose savings capacity is limited.

Mr. Nhan suggested that the Central Government continue to improve preferential mechanisms regarding credit, taxes, and land use fees; and support investment in technical infrastructure outside the project boundaries to increase attractiveness for businesses.

At the workshop, Mr. Chu Van Hai, Deputy Director and Deputy Chief of the Office of the Central Steering Committee on Housing Policy and Real Estate Market, stated that 11 provinces in Central Vietnam and the Central Highlands have already implemented social housing construction projects.

Of these, nine localities, including Da Nang, Thanh Hoa, Lam Dong, Gia Lai, Khanh Hoa, Nghe An, Quang Tri, Quang Ngai, and Ha Tinh, have exceeded their assigned targets.

According to Mr. Hai, developing social housing is not only a social welfare policy but also contributes to stabilizing the real estate market and creating momentum for many economic sectors such as building materials production, mechanics, transportation, interior design, and household goods.

In addition, investing in social housing creates more jobs, contributes positively to GDP growth, and ensures macroeconomic stability.

Source: https://thanhnien.vn/vi-sao-nha-o-xa-hoi-kho-thu-hut-dau-tu-185260519162433971.htm