>> Over 2,500 construction projects underway now, says ministry
>> VND740 billion disbursed for low-income housing projects
The salaries of state employees may soon include additional money for lodging, allowing them to afford proper accommodations.
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| Many low-incomers find unfeasible to have houses |
The Vietnamese Ministry of Construction has recently proposed that the Government add a more reasonable housing stipend for employees of the state. The recommendation was made to help low and middle-income families have better access to housing.
Current minimum salaries are so low that they don’t allow for the reality of high housing costs. On an income of the present minimum salary of VND730,000 (USD37.5) per month, if an employee sets aside 7.5% (the portion of the salary designated as a housing allowance), it would only equal VND54,750 (USD 2.7) a month. In the face of soaring real estate prices, rents and inflation, many low wage workers simply find this unfeasible.
According to ministry assessments, although the Government has supported the construction of low-income housing, the prices of even these units have become out of reach for many. Meanwhile, low-income, and even average-income families go without proper housing.
The ministry forecast the national housing demand will only continue its incline in coming years. In order to meet this increased demand in the next ten years there could be a need for around 600,000 new apartments of 30 million square metres in total.
It is estimated that this would require an investment of close to VND180 trillion (USD9 billion) in various housing projects during the coming decade. The ministry added that VND36 trillion (USD1.8 billion) of this is expected to come from the state budget, the rest through a combination of private domestic and foreign sources.
