Ministry seeks ODA for social housing plans

Saturday, Jun 20, 2015 14:45

A corner of the Dang Xa low-income housing project in Gia Lam District, Ha Noi. The Ministry of Construction asked the government to consider the use of official development assistance (ODA) in social housing projects. — VNA/VNS Photo Tuan Anh

HA NOI (Biz Hub)— The construction ministry has proposed to the government to consider the pilot use of official development assistance (ODA) in social housing projects.

Deputy Minister Pham Hong Ha was quoted by as saying that the construction ministry had sent a document to the planning and investment ministry at the end of last year, suggesting for the pilot use of ODA from Korea International Co-operation Agency (Koica) in developing social housing projects in major provinces and cities.

However, the document did not receive the planning and investment ministry's approval as social housing development was not listed as a prioritised sector for the use of ODA.

The construction ministry and a Korean housing company had jointly prepared a project proposal on developing a pilot model for investment in social housing projects that were proposed to receive finance from Koica.

The project aimed to prepare a master plan for social housing development, an investment model and appropriate housing designs to ensure adequate supply of accommodation for low-income earners by 2020.

In October last year, the construction ministry reportedly received Koica's decision that said the project proposal would be considered for financing from Koica in the 2016 fiscal year, the online newspaper said.

Therefore, the construction ministry proposed the project should be put in the list of projects requiring ODA from Korea for Viet Nam.

According to the construction ministry, social housing projects should be included in the list of prioritised sectors for financing from ODA, in line with established regulations, specifically the Law on Housing and the Decree 38/2013/ND-CP about the management and use of ODA.

Construction Minister Trinh Dinh Dung recently said social housing development required efforts to be taken by the government, developers as well as residents, especially credit and capital support by the government.

Dung said social housing projects were a long-term programme and Viet Nam was only in the first stage of social housing development. He said great efforts were needed to meet the huge demand for social housing projects in the country.

Statistics showed that the country needed about 700,000 social apartments during the 2012-15 period, and another 200,000 would be needed by 2020, with Ha Noi, HCM City, Da Nang and Dong Nai, as well as Binh Duong likely to see high demand. — VNS

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