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Low-income housing to expand in 2011

In Uncategorized on January 8, 2011 at 4:08 am

Low-income housing to expand in 2011

QĐND – Thursday, January 06, 2011, 21:17 (GMT+7)

More than 70,000 low-income households will have new apartments this year, according to Deputy Minister of Construction Nguyen Tran Nam.

He said his ministry and others would work to mobilise capital to hasten construction of low-income housing.

The more than 70,000 households which were mentioned above are considered to have the most severe financial difficulty of eligible families.

After one year of implementing the Government’s programme to build low-income houses, 37 projects nationwide have started, with a total investment of VND3.6 trillion (US$180 million) and total floor space of 750,000 square metres.

These projects will provide living space for a total of 64,000 households.

By the end of 2010, construction on 1,653 apartments had been completed, with 728 of them sold to residents in Hanoi and Da Nang.

Recently, authorities of Hanoi and Da Nang told contractors to complete construction on 728 apartments so they can be handed over before Tet (Lunar New Year) holiday.

This year, there will be many more ongoing projects finished and new projects launched.

Nationwide, investment of VND23 trillion ($1.15 billion) has been registered for 190 projects to build houses for low-income people, Nam said.

Of those projects, around 170,000 apartments with a total floor space of 7 million square metres will be adapted or renovated for around 700,000 low-income people during the 2011-15 period, he added.


According to the incentive policy of the Vietnam Government for investors in low-income housing, which took effect in June last year, investors will enjoy exemptions on value-added taxes (VAT) and land-use or land-lease charges.

Those who invest in housing projects for low-income earners will also receive a corporate income-tax exemption for the first four years and a 50 percent discount for the next nine years. After that, the rate will be 10 percent.

The normal corporate income-tax rate is 25 percent.

The proportion of housing area on the project sites has been increased by 1.5 times more than what is allowed by current regulations.

Under the Government’s policy, investors are also eligible for low-interest loans, loans from localities’ Housing Development Funds and cleared plots of land.

Pham Si Liem, deputy chairman of the Vietnam Federation of Civil Engineering Associations, said localities should also assist low-income people, including offering long-term, low-interest bank loans.

To ensure security for the loans, the loans should be for around 80 percent of the house’s value, he said.

“Creating conditions for buyers will accelerate house demand; then the market will itself increase the supply,” Liem said.

Last year, around 1,000 government employees in HCM City were eligible to receive loans approved by the city’s Housing Development Fund.

Of that figure, 522 people have received loans for a total amount of VND132 billion. The remaining people are still looking for housing.

Source: VNA

Source: QDND

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