Vingroup’s Proposal for Social Housing and Community Development in Vietnam
At a recent meeting of the Government’s Standing Committee with major businesses, Vingroup’s Chairman, Pham Nhat Vuong, presented proposals across three key areas, with a focus on social welfare and affordable housing.
Mr. Vuong suggested elevating the standards of social housing, not just as a solution for the poor, but as a viable option for those not yet financially prosperous and for everyday citizens of the country.
With a visionary perspective, he emphasized the need for these homes to include parking spaces, play areas for children, and amenities catering to the elderly. He explained that while people may be financially constrained at present, their circumstances could change, and they might later afford cars and motorcycles. Thus, social housing should be designed with a broader vision to accommodate such future possibilities.
“Let’s raise the standard of social housing to that of regular housing. If possible, let’s even change the name; let’s not call it ‘Social Housing’ but rather ‘Government Housing,’ indicating government-supported housing,” Mr. Vuong proposed. He added, “Within the category of Government or Social Housing, let’s specifically allocate housing for government officials, armed forces, police, and military personnel. This way, we can naturally improve social welfare.”
A rendering of Vingroup’s social housing project in Hai Phong.
Additionally, Vingroup’s leader proposed a mechanism for the government to appoint investors to expedite project completion. He highlighted that the most significant challenge regarding social housing is the constraint of a 10% profit margin for developers. Mr. Vuong explained that with such a slim profit margin, real estate businesses cannot sustain their operations, considering the typical inventory holding period of 5-7% and the potential for a 1-2-year sales lag, which would result in losses. He emphasized that social housing should be approached as a contribution rather than a purely profit-driven venture.
Furthermore, he suggested that the government allow for simultaneous work on various planning aspects, including master plans, subdivision plans, and detailed plans, along with the simultaneous approval of project proposals. This streamlined approach could reduce the time required for these processes by 6-9 months.
Mr. Vuong shared that Vingroup is actively pursuing the development of 500,000 social housing units but is facing challenges due to bureaucratic delays.
The other two areas of focus in his proposals were education, with a recommendation for English language education for all, and the development of auxiliary industries. He suggested providing support mechanisms for small and medium-sized enterprises to enable their participation in the auxiliary industry chain, aiming to establish a robust auxiliary industry in Vietnam, similar to Thailand’s.
The $360 Million Scandal: Tan Hoang Minh’s Chairman Do Anh Dung Faces Trial.
The upcoming trial of Do Anh Dung, the chairman of Tan Hoang Minh Group, on fraud charges involving VND 8,600 billion and over 6,000 investors, will be heard by the appellate court on September 25.
The Signature Collection by Van Phu – Invest: Introducing Vlasta to Hai Phong’s Thuy Nguyen District
“For over two decades, Van Phu – Invest has been a leading force in Vietnam’s real estate market, renowned for its expertise in developing urban projects in major cities nationwide. Now, for the very first time, they are bringing their unparalleled expertise to Thuỷ Nguyên, the emerging economic center of Northern Vietnam. This new project promises to be an iconic landmark and a testament to their exceptional reputation.”
The Top 10 Universities with Revenue in the Thousands of Millions
As per the recent enrollment proposal and the ‘public transparency’ reports submitted by universities to the Ministry of Education and Training, 10 higher education institutions boasted impressive annual revenues exceeding 1,000 billion VND in 2023. Among these top-performing institutions, 6 were public universities, while 4 were private.
“Vietnam and the EU to Discuss Pathways to a Green Future at GEFE 2024”
At GEFE 2024, pivotal discussions will revolve around pivotal topics that propel us towards a sustainable future: climate resilience, digital transformation for green finance, and sustainable energy transition. These are the key drivers for Vietnam to achieve its Net Zero target by 2050.
