An illustrative image of Phu Tho province. Source: TTXVN
According to the Phu Tho Department of Construction, the province is expected to complete 27 social housing projects by 2025, including 5 independent projects: Social Housing Area in Hoa Phong, Gia Cam Ward; Social Housing Area in Thuy Van; Trade Union Facility Area in Thuy Van Industrial Park; Phase II of Housing and Services Area in Thuy Van Industrial Park; and Social Housing Area in Minh Phuong Urban Area in Viet Tri city.
Additionally, there are 22 social housing projects that fall under the 20% land fund of other commercial housing projects. 12 of these are located in Viet Tri city, including Ben Got Residential Area, Anh Dung Street Residential Area, Southeast Viet Tri New Urban Area, Minh Phuong – Thuy Van New Urban Area, Nam Minh Phuong New Urban Area, Southwest Viet Tri New Urban Area, and Truong Vuong New Urban Area. The remaining 10 social housing projects are located in Phu Tho town and the districts of Thanh Ba, Ha Hoa, Phu Ninh, Tam Nong, and Cam Khe.
Mr. Dao Hoang Chinh, Deputy Director of the Department of Construction, stated that the implementation of the Prime Minister’s project “Investing in the construction of at least one million social housing units for low-income people and industrial park workers for the period 2021 – 2030” in Phu Tho province has basically met the demands and is in line with the province’s housing development program and plan.
Notably, the provincial People’s Committee has supplemented and developed new planning projects for social housing areas in industrial parks, which has promoted the development of social housing and housing for workers. This will serve as a basis for inviting investors to implement projects in the province in the coming time.
However, investors have faced challenges in implementing social housing projects in the province due to tight monetary policies affecting capital flows into the real estate market. There are also some limitations in implementing housing policies, including a lack of medium and long-term capital sources for social housing development due to the province’s financial difficulties.
Many real estate businesses are not interested in social housing due to ineffective investment promotion and incentive mechanisms, making it difficult to attract and select investors. There is also an imbalance in the structure of social housing products, with a low proportion of rental apartments in the total fund.
In addition, preferential loan policies for social housing investment are difficult to access, and commercial loans have to be relied on. The mechanism for social housing development incentives is also unreasonable and does not harmonize the interests and responsibilities of the state, enterprises, and people. Notably, the requirement for social housing projects to allocate 20% of the housing fund for rental purposes has led to a lack of registered tenants, causing waste and losses for investors.
According to Mr. Phan Trong Tan, Vice Chairman of the Provincial People’s Committee, to achieve the goal of social housing construction, the Provincial People’s Committee has implemented synchronous solutions to simplify administrative procedures and expedite site clearance and attract continued investment from enterprises. Provincial agencies and branches have also coordinated to propose solutions to remove difficulties and obstacles for investment projects in constructing social housing to speed up the progress of approved projects.
With determined implementation, the province has completed and put into use 5 projects, providing 1,807 units with a total floor area of over 168,000 square meters. Notable projects include the social housing area in Thanh Cong, Tho Son Ward; the low-rise social housing area in Lot N02 – Housing and Commercial Services Area in Minh Phuong Ward; the Housing and Services Area in Thuy Van Industrial Park in Viet Tri city; the social housing area for workers in Phu Ha Industrial Park, Phu Tho town; and the worker and expert housing area in Hoc Treo, Tien Kien, Lam Thao district.
The timely completion and use of these social housing projects have significantly contributed to meeting the demand for affordable housing for local residents, especially amid the rapid increase in real estate prices in the country and the province in recent times.
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