High demand but supply is not yet met
According to statistics from the Ministry of Construction, by 2030, Vietnam needs to build at least one million social housing units (NOXH) to meet the needs of people, especially workers in industrial parks and low-income people. In Ho Chi Minh City alone, with a population of more than 9.5 million people and a large number of immigrant workers, affordable housing is expected to be an urgent settlement solution.
It cannot be denied that in recent times, Ho Chi Minh City has made efforts to invest in social housing projects and accommodation for workers, in order to solve the problem of housing for the majority of low-income people, workers and people whose land has been cleared in urban projects. However, the City is also facing a paradox that while there is a surplus of commercial housing, the high-end segment, there is a shortage of social housing projects.
In the context of Ho Chi Minh City, social housing and low-income housing planning is always a story. However, in reality, the supply in the market is not complete. This problem is still facing many difficulties, in terms of planning, land, and transport infrastructure, said Dr. Su Ngoc Khuong, Senior Director of Investment Consulting at Savills Vietnam.
Dr. Su Ngoc Khuong said that many social housing projects have been completed but no people have moved there to live. The reason comes from three main factors: technical infrastructure, social infrastructure and urban economic problems - which are not guaranteed.
In addition to the problem of infrastructure, fluctuations in construction material prices and a shortage of supply are pushing social housing prices up sharply in the secondary market. In reality, many apartments are being offered for sale at double or even double the original price after only a few years of handover.
Regarding the reason why social housing prices have increased, Mr. Khuong said: "In Vietnam, the government has shown strong determination and promoting social housing development through the project of social housing and national housing fund.
He also pointed out the difference between supply and demand, along with unsynchronized planning, making it difficult for social housing to reach people with real needs. According to the standards of the Ministry of Construction, the average housing area should be 25 - 30 m2/person in type I urban areas, but the current reality is still not met.
Need for an unlock mechanism to meet real needs
To develop social housing sustainably, Mr. Khuong encouraged the need to clearly identify land funds and assign them to develop investors in the form of KPI (Index for assessing work performance), between the government and businesses. At the same time, support businesses with legal procedures, credit and profit margin.
"If these factors can be removed, especially support for loans and interest rates for businesses as well as people in the group of households eligible to buy houses and there are special mechanisms for them to overcome them, then we can ensure supply," he said.
From a sociological perspective, Mr. Khuong also commented on the long-term consequences if social housing continues to surpass people's access capabilities. Accordingly, when people have no place to settle down, it can create very high social evils. From a sociological perspective, this is a rather headache problem in developing countries.
In the context of the goal of building one million social housing units by 2030 being promoted, removing legal, land and financial barriers is a prerequisite for the market to develop in the right direction. Social housing is not only a social security solution but needs to be seen as part of a sustainable urban development strategy - where low-income people not only have housing, but also ensure long-term living, studying and working conditions. Without strong and synchronous steps, the problem of settling down for workers in large cities will continue to be a long-standing challenge.
