“Affordable Housing Remains an Elusive Dream for Many Workers”

While there have been numerous policies to promote social housing development, Mr. Ta Van Ha, Vice Chairman of the National Assembly’s Committee for Culture and Society, pointed out the limited supply during a recent discussion on the draft resolution of the National Assembly on piloting several special mechanisms and policies for social housing development at the 9th session.

Mr. Ha also noted that the current price of social housing is still high compared to the income of laborers. He analyzed: “With a price of 25 million VND per square meter, it is very difficult for someone earning less than 15 million VND per month to afford social housing. Similarly, a rental price of 6 million VND per month is still considered high for the target group of social housing beneficiaries, as they mainly have low and unstable incomes.”

Nguyen Thi Cam Nho (from Dong Thap) has been working for a leather and footwear company in Binh Tan district, Ho Chi Minh City, for 20 years, but her family still lives in rented accommodation.

Ms. Nho’s current income is about 9 million VND per month, and it can go up to 12 million VND with overtime work. While this income has increased compared to before, it is still barely enough to make ends meet.

With rising prices and increasing essential expenses such as rent, food, child-rearing, daycare, and medical care, Ms. Nho’s salary is only enough for basic needs and sending a small amount of money back home to support her elderly parents. “I can’t save any money, let alone think about buying a house or planning for my children’s future,” she confided.

At one point, Ms. Nho hoped to own a social housing unit in Binh Chanh district, where the price was about 1 billion VND for a 50-square-meter apartment. However, her dream of owning a home was quickly dashed when she learned that she needed at least 200 million VND for the down payment and a stable income to pay the monthly installment of more than 8 million VND. “With my worker’s salary and no assets to mortgage, I don’t qualify for a bank loan. In the end, I had to give up,” she said.

Currently, Ms. Nho’s family of three lives in a cramped rented room, which is unbearably hot during the summer and prone to flooding during the rainy season. The inadequate living space not only affects their health and daily life but also puts her children at a disadvantage compared to their peers.

Mr. Tran Van Hung, Chairman of the Trade Union of Tan Thanh Mechanical Commercial Joint Stock Company in Thu Duc City, pointed out that the current income of laborers is barely enough for food and clothing, let alone saving for a house. He hopes for more flexible policies for low-income housing, such as offering rentals at the best possible prices or selling to workers at discounted prices to improve their living conditions.

Mr. Tran Chau Giang, Chairman of the Trade Union of Long Hai Service and Protection Joint Stock Company (in Phu Nhuan District), noted that the 2023 Housing Law has added several beneficiary groups for social housing support policies, including workers and employees in enterprises, cooperatives, and cooperative alliances inside and outside industrial parks.

However, in reality, the procedures and conditions for purchasing this type of housing are quite complicated, and it is challenging for workers to meet the requirements. Mr. Giang suggested simplifying the mechanisms, procedures, and conditions for social housing entitlement to make it easier for laborers to access and acquire social housing.