Ho Chi Minh City authorities are seeking VND37.6 trillion (US$1.66 billion) to build affordable housing for workers over the next five years, of which State revenue will account for no more than 5 percent of the total investment, according to the Department of Construction.
“This is the most meaningful investment promotion. Especially in the context of the Covid-19 pandemic, this action is even more meaningful," Secretary of the Ho Chi Minh City Party Committee Nguyen Van Nen praised the Management Board of the Saigon Hi-Tech Park (SHTP) for prioritizing the health and life of workers and laborers above all.
During the Covid-19 pandemic, shanties and boarding houses in slums are the places where the disease is most contagious ever. If the living conditions become better, people can cope with the pandemic more effectively, minimizing loss of life.
According to Decision No.532/2021 issued by the Prime Minister, the preferential lending interest rate at the Vietnam Bank for Social Policies applied on preferential loans to rent and buy social housing or build, upgrade, and repair houses according to the provisions of Decree No.100/2015 on social housing development and management is 4.8 percent per annum.
After the social housing credit package worth VND30 trillion has ended, a new policy has been issued enabling social housing buyers and investors to get low interest bank loans. Still the distance from the policy to reality is too long as only few have been able to access the loans.
In its document to the Ho Chi Minh City People’s Committee, district 8 People’s Committee has proposed a special mechanism for the urban renewal project to remove households alongside Doi canal in wards 8, 9, 10, 12, and 14.