Property
Construction ministry seeks ODA for social housing projects
The Ministry of Construction (MoC) has proposed the Government to consider the pilot use of official development assistance (ODA) capital and concessional loans in social housing projects in order to make this type of accommodation more accessible to low-income people.
Deputy Minister Pham Hong Ha said in late 2014, the ministry registered for ODA funding from the Republic of Korea International Cooperation Agency (KOICA) for a project on building pilot social housing investment models in some localities.
However, the Ministry of Planning and Investment rejected the proposal, saying social housing development is not listed among prioritised areas benefiting from ODA and concessional loans as stipulated by the Government.
The MoC and the Korea Land and Housing Corporation jointly prepared a project proposal on developing a pilot model for investment in social housing projects that were proposed to receive finance from KOICA.
The project aimed to prepare a master plan for social housing development, an investment model and appropriate housing designs to ensure adequate supply of accommodation for low-income earners by 2020.
In October last year, the MoC reportedly received KOICA's decision that said the project proposal would be considered for financing from KOICA in the 2016 fiscal year.
Therefore, the MoC proposed the project should be put in the list of projects requiring ODA from Korea for Vietnam.
According to the MoC, social housing projects should be included in the list of prioritised sectors for financing from ODA, in line with established regulations, specifically the Law on Housing and the Decree 38/2013/ND-CP about the management and use of ODA.
In social welfare policies, satisfying low-income housing demand is critical, since accommodation is considered an essential need, the MoC said, adding that the development of social housing should be eligible for ODA and concessional loans.
Statistics showed that the country needs about 700,000 social apartments during the 2012-15 period, and another 200,000 will be needed by 2020, with Hanoi, Ho Chi Minh City, Da Nang and Dong Nai, as well as Binh Duong likely to see high demand.
However, the Ministry of Planning and Investment rejected the proposal, saying social housing development is not listed among prioritised areas benefiting from ODA and concessional loans as stipulated by the Government.
The MoC and the Korea Land and Housing Corporation jointly prepared a project proposal on developing a pilot model for investment in social housing projects that were proposed to receive finance from KOICA.
The project aimed to prepare a master plan for social housing development, an investment model and appropriate housing designs to ensure adequate supply of accommodation for low-income earners by 2020.
In October last year, the MoC reportedly received KOICA's decision that said the project proposal would be considered for financing from KOICA in the 2016 fiscal year.
Therefore, the MoC proposed the project should be put in the list of projects requiring ODA from Korea for Vietnam.
Photo for illustration
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In social welfare policies, satisfying low-income housing demand is critical, since accommodation is considered an essential need, the MoC said, adding that the development of social housing should be eligible for ODA and concessional loans.
Statistics showed that the country needs about 700,000 social apartments during the 2012-15 period, and another 200,000 will be needed by 2020, with Hanoi, Ho Chi Minh City, Da Nang and Dong Nai, as well as Binh Duong likely to see high demand.
