Social housing projects receive support from the Government. Photo tainguyenmoitruong.com.vn

HA NOI (Biz Hub) — A social housing project which will provide 1,037 low-cost apartments in Ha Noi's Tay Nam Linh Dam New Urban Area started yesterday.

The project in Hoang Mai District consists of nine apartment buildings which are scheduled to be finished in the next two years.

Project investors, the Housing and Urban Development Corporation (HUD) and BIC Viet Nam Joint Stock Company, held a ground breaking ceremony yesterday attended by Construction Minister Trinh Dinh Dung.

HUD Chairman Nghiem Van Bang said that the project was part of co-operation between the ministry and the Ha Noi People's Committee to realise their housing development strategy towards 2020 with a vision to 2030.

It would contribute to the targeted 4,950 low-cost apartments by 2015, and 20,000 apartments by 2020, he said.

With an estimated investment of VND710 billion (US$33.8 million), the project marked the first disbursement of a loan worth VND3 trillion ($142.8 million) granted to HUD by the Commercial Joint Stock Bank for Investment and Development of Viet Nam (BIDV).

Deputy general director of the bank Tran Luc Lang said that earlier this year, the bank signed an agreement offering a preferential loan worth VND10 trillion ($476 million) for HUD to develop real estate projects.

Around 30 per cent of the loan was for social housing projects, he said.

Minister Trinh Dinh Dung said that State and privately owned enterprises were being encouraged to develop social housing.

The Government is also taking measures to warm up the domestic real estate market and boost social housing projects to help stimulate demand and ensure social welfare.

He urged localities to address problems related to land acquisition and compensation which had caused delays to many projects.

As a drastic measure to boost the social housing segment, the State Bank of Viet Nam will provide VND30 trillion ($1.428 billion) to five banks including BIDV and Agribank so that they can offer preferential loans to low-income earners and investors.

From next month, eligible borrowers can access preferential home loans of 6 per cent to those who rent, buy or build low-cost housing. — VNS