New partnership seeks to develop 20,000 social housing units for workers in HCM City by 2030

New partnership seeks to develop 20,000 social housing units for workers in HCM City by 2030

The HCM City Labour Federation and Hoa Sen Group Joint Stock Company will study housing demand among workers and labourers and jointly develop policies, investment models and cooperation mechanisms for social housing in line with the city’s programme.

Representatives of the HCM City Labour Federation and Hoa Sen Group in HCM City on January 16 sign a strategic cooperation agreement to develop 20,000 social housing units for workers and labourers by 2030. — VNA/VNS Photo Thanh Vũ

The HCM City Labour Federation on January 16 signed a strategic cooperation agreement with Hoa Sen Group Joint Stock Company to jointly implement a project to develop 20,000 social housing units for workers and labourers by 2030.

Under the agreement, the two sides will study housing demand among workers and labourers and jointly develop policies, investment models and cooperation mechanisms for social housing in line with the city’s programme.

They will also propose investment plans, complete legal procedures and implement social housing projects at suitable locations in compliance with regulations, ensuring economic efficiency while serving community and social needs.

Võ Khắc Thái, Permanent Vice Chairman of the HCM City Labour Federation, said the initiative aimed to invest in and develop social housing under lawful forms such as rental, rent-to-own and purchase, with an initial focus on rental housing to meet the most urgent needs of workers and labourers.

“The projects are expected to help address housing shortages, improve living standards and support the long-term settlement of workers in the city.”

Project sites would prioritise locations near or conveniently connected to areas with high concentrations of workers, including industrial parks, export processing zones, high-tech parks and software parks, as well as localities such as Phú Mỹ, Châu Đức, Củ Chi, Hóc Môn, Nhà Bè and Bình Chánh, along with other wards and communes with development potential.

“The goal is to ensure that the distance between housing and workplaces does not exceed 15 kilometres, with enterprises expected to provide free shuttle bus services for residents.”

Depending on specific periods, the two sides will jointly identify and select land funds that meet the set criteria and proceed with project development.

They will also propose that relevant authorities provide preferential loans of VNĐ200 billion (US$8 million) per project, with subsidised interest rates covering up to 70 per cent, and shorten project approval procedures to 60 days.

These measures are expected to contribute to the city’s target of developing 200,000 social housing units by 2030.

According to Lê Phước Vũ, Chairman of Hoa Sen Group, although social housing investment does not generate high profits, it demonstrates strong corporate social responsibility.

With advantages in supplying more than 15,000 construction and interior decoration products and guided by the principles of “Integrity – Community – Development”, Hoa Sen Group is committed to accompanying the city in building quality and effective social housing for workers.

Under the cooperation agreement, the two sides agreed that social housing development should go beyond meeting accommodation needs to creating healthy, stable and sustainable living environments for workers, thereby helping attract and retain the labour force.

Projects must ensure synchronous and quality investment in both housing and internal facilities, including convenience stores, kindergartens, community spaces, green parks, small commercial services, dining facilities, technical infrastructure and solutions to connect residents with public transport.

The two sides will jointly consider and decide on appropriate investment scales based on land area, infrastructure connectivity, housing demand and investment efficiency for each project.

Detailed project contents, including objectives, locations, construction scale, products, functional zoning and implementation schedules, will be specified in separate investment cooperation contracts or appendices. 

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