Vietnam state-owned lender to finance project for housing workers

TN News

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Vietnam Development Bank, the state-owned lender that provides capital for public projects, will earmark more than VND7 trillion (US$369 million) to lend to 43 new housing projects for workers and low incomers.

The bank is finalizing its assessment of the projects so that it can grant the loans soon, Deputy Construction Minister Nguyen Tran Nam said, noting that the projects will benefit tens of thousands of people.

He said the priority now is to provide funds for housing projects in industrial parks in large cities, where many workers are experiencing housing difficulties.

According to the Ministry of Construction, there are 194 industrial parks in the country with around 2.5 million employees and 70 percent of them are in need of housing.

Local developers have not been interested in building housing for workers because it often takes a long time to recoup investment while land prices and compensation fees are high, Nam said.

Official statistics showed that there are only 265 housing projects for workers in Vietnam with a combined investment of VND60 trillion.

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