Vietnam – Malaysian investors eye low-cost housing projects

HANOI/HCMC – Malaysian businesses at a meeting with the Ministry of Construction on Tuesday expressed interest in low-cost housing projects and asked Vietnam to offer them favorable conditions.

Speaking at the meeting, Deputy Minister of Construction Nguyen Tran Nam said urbanization is occurring rapidly in Vietnam with an annual rate of over 1%, meaning the number of people living in urban areas increases by one million every year. However, local property developers only focus on large-size housing products with high prices that the majority of citizens cannot afford.

Therefore, Vietnam is facing a problem of accommodation for residents in urban areas.

Abdullah Ahmad Badawi, former prime minister of Malaysia, suggested Vietnam develop satellite cities with good traffic infrastructure connection to reduce urban traffic congestions and offer citizens better living conditions.

Focusing on housing development in Hanoi and HCMC will place more pressure on these two cities, especially when land resource in cities is limited, said Badawi.

Nam stated Vietnam would fully support Malaysian investors and set aside land for them so that they could soon enter the Vietnam housing market.

From now to 2015, Vietnam needs some 250,000 apartments for low-income earners in urban areas, especially in Hanoi and HCMC. At present, only 40,000 units are available.

* The HCMC government has given the nod for Thu Thiem Investment and Construction Authority (Thu Thiem ICA) to stop the project to build 1,040 resettlement apartments in Cat Lai Ward, District 2.

According to Thu Thiem ICA, the project was aimed for resettlement of households ineligible for resettlement in Thu Thiem New Urban Area. However, because Cat Lai is remote and infrastructure there is not available for the project development, Thu Thiem ICA asked the municipal government for permission to relocate the households to a 17.3-hectare area in An Phu Ward in District 2.

A 50-hectare land site in Cat Lai Ward was allocated to Thu Thiem ICA to develop the 1,040 apartments for resettlement. Now, the project is cancelled, so the land site will be used for resettlement of those in need.

Phuong Thao - The Saigon Times Daily

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