The construction ministry has raised two reasons for the non-disbursement of the credit package of VND120 trillion (US$5.14 billion) launched by the government about two months ago for developing projects to build social houses and houses for workers, and upgrade deteriorated apartment buildings.
The amended Housing Act lacks provisions on the life span of condominiums, which may cause problems for the authorities when it comes to renovating the buildings.
Vietnam plans to mobilise different financial sources from society, especially from enterprises and foreign developers, to offer more social housing.
The administration of Hai Phong City in northern Vietnam on Sunday broke ground on a 10 block social housing project, with a total of 2,538 apartments in An Duong District.
Investors who plan to participate in Viet Nam's social housing market in the future should balance selling price, construction quality and sustainability factors to succeed in the market, experts said.
In lieu of real estate aid, a $5 billion plan government plan seeks to develop at least one million social housing units.
Minister of Construction Nguyen Thanh Nghi and Santiago Maggiotti, Argentina's Minister of Territorial Development and Habitat, have stated their intention to bolster the exchange of authority delegations for observations in social housing development
The credit package of VND120 trillion (US$5 billion) for social housing development has not yet been disbursed due to many challenges.
During this period, Hanoi saw positive developments in its housing development plans, with nearly 50 million square meters of new residential floor space built and the housing needs of tens of thousands of households met.