Vietnam faces serious shortage of housing for workers

Most industrial parks in the country, including in the southern key economic zone, lack housing for workers, said Phan Van Anh, Vice President of the Vietnam General Confederation of Labour.

“The rate of migrant workers at industrial parks accounts for more than 50 percent of the country’s total workforce. Ho Chi Minh City, Dong Nai and Binh Duong provinces have 70 percent of migrant workers,” Anh said.

"Housing, kindergartens and schools in industrial parks are urgently needed," he said at a conference on workers' housing held on September 24 by Tien Phong (Vanguard) Newspaper. 

The confederation’s survey conducted in 2016 showed that out of 2.7 million of workers at 344 industrial parks and export processing zones, more than 1.2 million needed housing, and more than 800,000 needed kindergartens for their children.

Houses in HCM City’s Tan Phu district (Photo: VNA)
Houses in HCM City’s Tan Phu district (Photo: VNA)

Only five to 10 percent of their needs are met, according to the survey.

“The number of workers has increased year by year, but industrial park development planning does not include worker accommodation,” he added.

Current policies had not yet encouraged the private sector to invest in housing development for workers at industrial parks, he said. 

Nguyen Trọng Ninh, head of Housing and Real Estate Management Department under the Ministry of Construction, said that as of last year, nearly 1.2 million workers at industrial parks had housing demand. This figure is expected to increase to nearly 1.7 million by 2020, according to the ministry.

About 200 housing projects have been completed that house 330,000 workers, meeting about 28 percent of demand.

“The biggest problem is that state funds have not been allocated to cover the interest rate for commercial banks to provide loans for social housing projects,” he added.

According to a suggestion from the State Bank of Vietnam, nearly 10 trillion VND (431.4 million USD) from mid-term public investment will be needed for four commercial banks in the 2016-2020 period.

Many provinces and cities’ reports show that 226 social housing projects have stopped or have been delayed.

Ninh added that authorities in many provinces and cities had not paid much attention to developing social housing.

Around 20 percent of land fund for commercial housing projects should be for social housing.

Shortage of land for social housing was a barrier, he said.

Le Huu Nghia, general director of Le Thanh Real Estate Company, which has carried out social housing projects, said that investors had been discouraged because of the red tape involved in implementing social housing projects.

Social housing is more dense, with more people living in these areas, Nghia said, adding that investors were reluctant to be involved in such projects.

Many other delegates at the meeting complained about red tape that workers face in meeting the Government’s requirements to buy social housing.

Nguyen Hoang Minh, Deputy Director of the State Bank of Vietnam’s HCM City Branch, said that banks provided loans to workers based on their demand and the value of apartments. Banks provided loans that cover 70 to 80 percent of apartment value, while the interest rate for individual borrowers was 9 to 12 percent, he added.

VNA

Other News

Vietnam moves to adapt to rapid population ageing, expand silver economy

Vietnam moves to adapt to rapid population ageing, expand silver economy

The International Day of Older Persons 2026, themed “The Age of Longevity: Rethinking Systems for Longer Lives,” highlights the need to develop healthcare, social security, labour-market and social-service systems in response to increasing life expectancy. For Vietnam, rapid population ageing is not only a demographic issue but also a development challenge.

Vietnamese, Lao localities bolster Front cooperation

Vietnamese, Lao localities bolster Front cooperation

Both sides agreed to keep educating officials, Party members, youth union groups and the broader public, especially young people in both provinces, on the great friendship, special solidarity, comprehensive cooperation and strategic cohesion between Vietnam and Laos.

Urgent rescue launched for Merchant Mariner off Quang Ngai

Urgent rescue launched for Merchant Mariner off Quang Ngai

The captain discovered water entering ballast tanks No. 4, 5 and 6 on the port side, causing the vessel to list slightly. Initial assessments indicated that the vessel may have struck an underwater rock formation while underway.

Publishing copyright caught in crossfire of piracy, AI

Publishing copyright caught in crossfire of piracy, AI

Publishing copyright is entering an entirely new phase. As AI becomes increasingly capable of generating text, summarising books, mimicking writing styles and producing content at enormous speed, ensuring copyright protection is becoming more difficult.

Heavy rains cause widespread damage in Phu Tho, Thanh Hoa

Heavy rains cause widespread damage in Phu Tho, Thanh Hoa

Prolonged heavy rains from September 13–17 have caused flooding and landslides, damaging homes, crops, roads and infrastructure in Phu Tho and Thanh Hoa provinces, with local authorities mobilising forces for emergency response.

Quang Ninh police bust 38.4 million USD transnational cybercrime ring

Quang Ninh police bust 38.4 million USD transnational cybercrime ring

Quang Ninh city's Public Security Department warned individuals, agencies and businesses not to publicly disclose or provide personal information or bank account details on social media, and urged organisations and businesses to strictly comply with regulations on protecting customers’ personal data.

Search area expanded to recover more martyrs' remains in Quang Tri

Search area expanded to recover more martyrs' remains in Quang Tri

The continued recovery of martyrs’ remains provides valuable information and further evidence of those who fought and sacrificed their lives for national independence and freedom. It also encourages search teams to persist in locating fallen soldiers still lying on former battlefields, contributing to the effective implementation of the 500-day campaign and reflecting Vietnam’s long-standing tradition of gratitude.

Vietnam to screen students nationwide for five health risks from 2028

Vietnam to screen students nationwide for five health risks from 2028

Vietnam will launch nationwide screening for five groups of school-related diseases and health conditions among students from preschool through high school from 2028, including overweight and obesity, refractive errors, spinal curvature, oral diseases and mental health disorders.