HoREA proposes letting manufactuers build worker housing in IPs

HoREA proposes letting manufactuers build worker housing in IPs

The Ho Chi Minh City Real Estate Association (HoREA) is seeking the prime minister's approval for manufacturers to develop worker housing in industrial parks.

Worker housing area in Hiep Phuoc Industrial Park

The Ho Chi Minh City Real Estate Association (HoREA) has submitted feedback to the prime minister on a draft pilot project for policies aimed at accelerating social housing development.

In its document dated March 21, HoREA proposed allowing manufacturers in industrial parks (IPs) to invest in building dormitory housing for workers. The association also called for changes to permit enterprises to rent social housing or worker dormitories located outside IP boundaries.

The proposal follows the Ministry of Construction’s (MoC) submission to the government on March 17 of Document No. 08/TTr-BXD, which outlines a draft National Assembly resolution on piloting policies for social housing development. The MoC also issued an accompanying impact assessment, Report No. 14/BC-BXD.

The documents aim to pave the way for at least one million social housing units to be built during the 2021-2030 period and beyond. They outline seven pilot policies intended to accelerate progress and expand access to affordable housing.

After reviewing the MoC’s proposal, HoREA recommended that costs related to constructing or renting worker dormitories be recognised as legitimate business expenses and included in production costs. It also highlighted a gap in the current Housing Law, which only allows enterprises to rent worker housing within IPs.

“There are no regulations allowing enterprises to rent social housing outside IPs or to build their own dormitories for workers,” said HoREA chairman Le Hoang Chau.

He noted that the demand for worker housing is rising, but supply remains constrained, while commercial housing is often unaffordable for workers. HoREA urged the government to support manufacturers–regardless of whether they are involved in real estate–so they can take an active role in resolving housing issues.

“Allowing this would help stabilise the workforce, give workers more security, and support the sustainable development of industrial zones,” HoREA stated.

To encourage participation, the association also recommended financial support policies such as tax incentives, preferential loans, and reciprocal mechanisms from the state to ease the financial burden on businesses.

Previously, some enterprises proposed buying land, building homes, and selling them to workers through instalment schemes. However, legal procedures remain a significant barrier to implementation.

VIR