Property market must shift towards low-cost housing: Construction Ministry

The Ministry of Construction has proposed reforming administrative procedures to create favourable conditions for the development of low-cost, compact social and commercial housing.

Property market must shift towards low-cost housing: Construction Ministry
The Ministry of Construction has proposed reforming administrative procedures to create favourable conditions for the development of low-cost, compact social and commercial housing.— Photo vnmedia

This is one of the solutions suggested in the ministry’s latest report, submitted to the National Assembly ahead of its May session starting on May 20.

The ministry also asked the Prime Minister and the Standing Committee of the National Assembly to consider adding public investment capital to boost development of social housing.

The National Assembly and Government should amend and supplement policies on developing social housing projects for workers, the ministry said.

According to the report, under the social housing programme in urban areas nationwide, 198 projects have been completed with more than 81,700 units. Another 226 projects are under construction with a total of about 182,200 units.

Meanwhile, the social housing development programme focused on low-income people in urban areas has completed 98 projects with a total of about 40,700 apartments, reported vneconomy.vn.

About 100 social housing projects for workers in industrial parks have been finished with about 41,000 apartments.

The ministry said the structure of housing products had been adjusted towards low-cost housing but the change had been inadequate to meet demand.

 

The market has had abundant supply of large, expensive, high-end housing products, but has lacked affordable options that the majority of people in urban areas need, according to the report.

20-30 per cent of the customers in the local market can afford property products priced from VND25 million per sq.m, while 70-80 per cent need affordable or social housing products priced below that threshold. However, supply of low-cost housing has not met demand.

Prices of real estate products, especially housing prices, are not stable.

Since the end of 2016, social housing projects have struggled to secure loans needed to meet their development schedules.

The construction ministry said it was difficulty to secure funding for social housing because the social housing support programme was not on the list of programmes that have priority to use capital from the State budget.

Low-income households had seen their incomes rise, but still struggleed to pay for housing even when they received support from the State.

The report also said local authorities in the provinces of Quang Ninh, Khanh Hoa and Kien Giang had worked hard to stabilise their local property markets.

According to the report, the real estate market has shown stable development in 2018 and the first quarter of this year after several slow years since 2013. – VNS

 
 

Other News

.
Coca-Cola suspends social media advertising despite Facebook changes
Coca-Cola suspends social media advertising despite Facebook changes
BUSINESSicon  27/06/2020 

The company condemns racism and seeks more accountability from Facebook and other platforms.

Vietnam prepares to resume international flights
Vietnam prepares to resume international flights
BUSINESSicon  27/06/2020 

It is still unclear when Vietnam will reactivate international flights and reopen its market to foreign travelers, but agencies and travel firms all are making hectic preparations.

Banks’ support desired for mobile payments
Banks’ support desired for mobile payments
BUSINESSicon  26/06/2020 

New approaches, especially regarding activities of banks, are required to boost the reach of mobile money agents and expand financial inclusion in Vietnam.

Authorities get to grips with new bad debt mountain
Authorities get to grips with new bad debt mountain
BUSINESSicon  27/06/2020 

A spike in the amount of bad loans sitting in banks’ books has triggered Vietnamese authorities to seek new paths to recovery,

Debt limit to be adhered to despite bumps in road
Debt limit to be adhered to despite bumps in road
BUSINESSicon  26/06/2020 

In spite of a dent in state budget revenue and a rise in spending this year causing a big fiscal deficit, the government will be able to retain the country’s public debt situation, ensuring national financial security.

Coronavirus: Qantas to axe 6,000 jobs due to pandemic
Coronavirus: Qantas to axe 6,000 jobs due to pandemic
BUSINESSicon  26/06/2020 

The airline says the collapse in billions of dollars of travel revenue means it has "little choice".

Bayer to pay $10.9bn to settle weedkiller cancer claims
Bayer to pay $10.9bn to settle weedkiller cancer claims
BUSINESSicon  26/06/2020 

The chemical giant is settling almost 100,000 US lawsuits from users of its popular Roundup herbicide.

Olympus quits camera business after 84 years
Olympus quits camera business after 84 years
BUSINESSicon  26/06/2020 

Once a huge camera-maker, it is looking to carve off that part of its business and focus elsewhere.

COVID-19-induced uncertainty continues to drag on emerging East Asian bonds
COVID-19-induced uncertainty continues to drag on emerging East Asian bonds
BUSINESSicon  26/06/2020 

The coronavirus (COVID-19) pandemic continues to drag on local currency bond markets in emerging East Asia, including Viet Nam, as investment sentiment globally and in the region wane and containment measures limit economic activity.

Finance ministry says public investment funds borrowed from abroad must be disbursed quicker
Finance ministry says public investment funds borrowed from abroad must be disbursed quicker
BUSINESSicon  26/06/2020 

Loans borrowed from abroad for public investment must be disbursed quicker if Vietnam is to recover economically from the impacts of the coronavirus pandemic, according to the Ministry of Finance.

VEPR urges tax policies for FDI to be revised to prevent tax avoidance and evasion
VEPR urges tax policies for FDI to be revised to prevent tax avoidance and evasion
BUSINESSicon  26/06/2020 

Vietnam needs to revise tax and land policies for foreign direct investment (FDI) companies to ensure a level playing field for businesses.

Process supervision can end licence limbo
Process supervision can end licence limbo
BUSINESSicon  26/06/2020 

Along with luring in new foreign investment inflows, one of the major tasks for the government is to tackle oversights in regards to foreign-invested projects without construction licences.

Vietnam's logistics service industry ready for opportunities from EVFTA
Vietnam's logistics service industry ready for opportunities from EVFTA
BUSINESSicon  26/06/2020 

Vietnam’s logistics service industry is preparing infrastructure and techniques to grasp opportunities from the Europe-Vietnam Free Trade Agreement (EVFTA) to attract foreign investors with a wave of factories.

Vietnam Airlines to buy more aircraft despite big losses
Vietnam Airlines to buy more aircraft despite big losses
BUSINESSicon  26/06/2020 

The national flag air carrier is still moving ahead with its plan to buy 50 narrow-body aircraft, though it has reported a loss of VND2.6 trillion in Q1.

Vietnam's footwear firms forced to lay off workers due to Covid-19
Vietnam's footwear firms forced to lay off workers due to Covid-19
BUSINESSicon  26/06/2020 

The coronavirus pandemic has left tremendous impact on Vietnam's footwear industry, with the lack of production orders and the consequent drop in exports forcing them to lay off employees. 

PM approves suspension of Bac Van Phong SEZ plan
PM approves suspension of Bac Van Phong SEZ plan
BUSINESSicon  25/06/2020 

PM Nguyen Xuan Phuc has approved the suspension of a master plan to develop the Bac Van Phong special economic zone in Khanh Hoa Province until the National Assembly agrees to pass the law on special administrative and economic zones.

Orientations put Hanoi onto investment radar
Orientations put Hanoi onto investment radar
BUSINESSicon  25/06/2020 

Amidst the global trend of investment shifts, Hanoi is betting on new orientations and solutions to increase its appeal, expecting to open opportunities for international investors to venture further afield.

EVFTA promises an enhanced Vietnam
EVFTA promises an enhanced Vietnam
FEATUREicon  25/06/2020 

The National Assembly has passed the EU-Vietnam Free Trade Agreement and the EU-Vietnam Investment Protection Agreement, ushering in a new economic, trade, and investment co-operation outlook for both Vietnam and the EU.

VietinBank to sell 50 percent of capital in Vietinbank Leasing
VietinBank to sell 50 percent of capital in Vietinbank Leasing
BUSINESSicon  25/06/2020 

Vietinbank (CTG) has approved a plan to sell 50 percent of its holdings in the bank’s financial arm Vietinbank Leasing Company Limited.

Circular about origin rules in EVFTA issued
Circular about origin rules in EVFTA issued
BUSINESSicon  25/06/2020 

Minister of Industry and Trade Tran Tuan Anh has signed Circular 11/2020/TT-BCT about rules of origin in the European Union – Viet Nam Free Trade Agreement (EVFTA).

 
 
 
Leave your comment on an article

OR QUICK LOGIN