A low-cost apartment block for workers.
Pham Thi Lai, who is a worker in the Southern province of Long An, said she and her husband had been working for over a decade but still live a tiny rental house. They could not afford to buy a commercial house, but no workers’ housing projects were planned in their area. Real estate developers built industrial parks without housing for workers like Lai.
She is just one of thousands of workers at industrial zones in southern provinces, and most lease small dwellings to live, the only housing they can afford and would like to own these houses.
The southern region is a magnet for industrial workers due to the huge investment by foreign investors and development of numerous industrial zones.
In Long An’s Duc Hoa Commune, for example, there are three large industrial parks and dozens of industrial complexes, attracting more than 40,000 workers. These workers are living in rental houses - the only type of housing they can afford. The same situation can be seen in other communes like Ben Luc, Can Duoc, or other Southern provinces like Binh Duong, Dong Nai.
It is the same in Binh Duong Province, which has 48 industrial complexes with millions of workers from all over the country.
According to a report in Property Investment magazine, Binh Duong authorities plan to develop 37 social housing projects on an area of 220ha with 64,000 houses for low-income people.
But the report says the plan is not complete.
Meanwhile, just one third of workers in Dong Nai are reported to have the family record book, which signifies home ownership.
Modest supply
Property Investment magazine reports that most of the housing projects meant for workers are in industrial zones.
But in each zone only 10ha is earmarked for workers’ housing.
General Director of Tran Anh Long An Real Estate Company Tran Duc Vinh said his company developed seven housing projects for workers and all units in them were sold out within one or two months. He added: “The demand is huge.”
Nguyen Van Hau, general director of Asian Holding, said there were few proposed workers’ housing projects.
Only 10 worker’s housing project under construction in Long An currently and not meeting the demand.
Property market experts cited limited land availability as the main reason for developers ignoring this segment.
Furthermore, they added, the incentives offered by the Government for workers’ housing are not as attractive as profits from commercial projects.
However, Hau added: "Worker’s housing offers good profits if developers plan well. Furthermore, procedures are much easier.”
