It Is Difficult For Companies To Make Cheap Houses Because Of The Mechanism

Too long time for procedures, lack of clean land fund makes many businesses unable to make cheap housing for workers and low-income workers.

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Seven years have not finished

On the morning of 27 February, the Association of Real Estate Ho Chi Minh City organized a workshop on the development of social housing and cheap commercial housing, chaired by City Party Committee Secretary Dinh La Thang.

Le Huu Nghia, director of Le Thanh Company, said that the company has built 2,000 apartments for lease in 49 years at a cost of about VND400 million. In addition, Le Thanh also has 185 apartments for rent at VND1.5-2 million per month.

Director of Le Thanh Company said that the most difficult job of making cheap houses is administrative procedures. “We have applied for a social housing permit from July to 2016, yet we have not yet approved it. The decision has been made to allocate land and pays land use fees. However, the People’s Committee of Ho Chi Minh City asked for compensation and clearance. This is an unreasonable question, but it has made us deadlock for months, “Nghia said.

Similarly, Thien Phat Company also made 2,500 residences for workers in Linh Trung II Industrial Park. Each apartment here is 35sqm wide and for workers rent VND1.9 million / month with full facilities.

However, Thien Phat has a project that has applied for a social housing permit for seven years but is still not finished. Another project of Thien Phat in cooperation with Ho Chi Minh City Young People’s Volunteers in District 12 cannot be broken because of procedural difficulties.

Cheap houses

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“The licensing mechanism of Ho Chi Minh City is too slow. Meanwhile, we just applied for a 30ha project in Thuan An for a few months, which has been supported by Binh Duong province and is ready to start, “Thien Phat said.

Truong Anh Tuan, Chairman and CEO of Hoang Quan said that the company has implemented 18 social housing projects with 16,500 apartments. In Ho Chi Minh City, two projects have been handed over: HQC Plaza and HQC HQC.

However, the company has many projects in Binh Chanh and Binh Tan many years have not started because the procedures have not been completed. “We have clean land but the process is from the Department of Construction to the district and the Department of Architectural Planning, so the project is inactive,” said Tuan.

Leaders of enterprises with experience in developing social housing and affordable housing all said that the demand for living in cheap houses or high-end apartments are the same, from VND5 million/ sqm to get social housing.

“Houses under 20sqm should not be sold, will create slums and should be rented for easy management. If the tenant does not meet the demand, the house will be recovered. Ho Chi Minh City should do business for rent 12-20sqm for rent, “said Le Huu Nghia.

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Le Van Khoa, Vice Chairman of HCM City People’s Committee, said that social housing has been a concern for HCM City and businesses for many years. The government also assessed that Binh Duong was the leader, while Ho Chi Minh City ranked second in social housing. In order to develop a successful social housing, HCMC must have a public land fund for its implementation.

Vice Chairman of Ho Chi Minh City People’s Committee also acknowledged procedures are still kha. There is a problem in Ho Chi Minh City, there is a problem by the Central. “The Department of Construction must be the one-stop shop for social housing procedures. The Department of Construction must solve the problem but the enterprise does not handle the dossier running around other departments, “Khoa said.

Cheap houses


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Khoa said there were three enterprises applying for social housing without profit. Vice Chairman of Ho Chi Minh City People’s Committee wants businesses to reduce the maximum in terms of cost, lower prices for apartments. “Party Secretary Dinh La Thang found the company selling cement cheaper than the market. I am also contacting a steel company to negotiate the sale price of steel to build social housing, “Khoa said.

HCM City Party Secretary Dinh La Thang said that Ho Chi Minh City did not apply the model house of 100 million dongs in Binh Duong but learned the very high spirit of Binh Duong based on the demand for housing. the society of the locality.

“HCMC will accept innovation and take risks to innovate. The Politburo allowed the issues to develop Ho Chi Minh City without breaking the law, then deployed immediately, “Thang said.

Secretary of HCM City Party Committee wants businesses to remove what needs to sit down to talk to each other specifically. The two sides should sit together to peel each issue to resolve the point. At present, HCMC still has a large area for enterprises to participate in social housing.

“Ho Chi Minh City will listen to the opinions of enterprises to perfect the policy mechanism. In order to have affordable housing, it is necessary to build up the supply chain of raw materials. If all the businesses join hands to reduce the price of raw materials, the reduction of house prices is not too difficult, “City Party Committee Secretary said.

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