Vietnamese billionaires commit to building 1 million affordable housing units in the country by 2030

Some of Vietnam’s largest real estate developers have committed to building over 1 million affordable housing units collectively in the country from now to 2030.

On Aug. 1, Bui Xuan Huy, the billionaire president of Vietnamese real estate developer Novaland, stated his company’s commitment to developing 200,000 social housing units in Ho Chi Minh City and other southern provinces.

The announcement was made during a conference on social housing products for factory workers and low-income earners, chaired by Prime Minister Pham Minh Chinh.

Huy said his group would be able to build 5,000-10,000 social housing apartments immediately.

Previously, in mid-May, a subsidiary of Vingroup called Vinhomes approved a plan to build 500,000 social housing units priced from VND330 million (approximately $14,108) in Hanoi, Ho Chi Minh City and Da Nang.

Vinhomes, which is owned by billionaire Pham Nhat Vuong, is a leading real estate developer in Vietnam and valued at over $10 billion.

However, Vinhomes has canceled plans to develop social housing in the past, and the volatile real estate market has led to banks tightening their purse strings to prevent inflation.

The Him Lam Group, owned by Duong Cong Minh, who also chairs Vietnamese bank Sacombank, has stated it is ready to develop 75,000 social housing apartments from now to 2030 after resolving some issues related to procedure.

If the companies keep their commitments and build all 1.3 million social housing apartments, the total value of the projects would be $20-30 billion, considering each unit is priced at approximately VND300-500 million (approximately $12,825- $21,376).

Featured Image via FBNC Vietnam

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