Argentina and Vietnam seek to foster social housing

Minister of Construction Nguyen Thanh Nghi and Minister of Argentina's Ministry of Territorial Development and Habitat Santiago Maggiotti

In a meeting with Minister of Construction (MoC) Nguyen Thanh Nghi at the end of April, Santiago Maggiotti Minister of Argentina's Ministry of Territorial Development and Habitat, stated his intention to bolster the exchange on SH development, particularly eco-development, smart green urban development in light of environmental issues, and technical infrastructure improvement.

Santiago Maggiotti states that the Argentine Ministry of Territorial and Housing Development will examine the form to develop for Vietnamese enterprises.

Approximately 2.5 million individuals are currently destitute in Argentina, which has a significant housing shortage. Consequently, housing policy will be a policy of long-term planning. In addition, Argentina has specific legal provisions pertaining to SH, and these laws are constantly being enhanced.

Vietnam is currently carrying out construction investments with state support through a variety of policies to invest in the construction of at least one million SH residences. Minister Nguyen Thanh Nghi emphasised Vietnam's desire to support legal policies for the development of SH.

With the SH market in Vietnam, local businesses, whether public or private, that wish to develop SH initiatives must use their own funds or obtain financing from commercial institutions.

In contrast, in Argentina, all land is privately owned. To construct, they must obtain permission from the government; consequently, the price of land is different. If individuals wish to purchase land, the price will be five times greater than the state-mandated price range.

As per Minister Maggiotti, the two ministries share numerous similarities and seek to gain knowledge from expertise, policies pertaining to development, and SH beneficiaries. Both nations seek to modify prices reasonably so that people can afford to purchase homes.

According to Cushman & Wakefield's Vietnam SH Report 2023, Vietnam had wrapped up 301 social housing projects in urban areas and workers' housing projects in industrial zones, totalling roughly 156,000 units by the beginning of 2023.

Approximately 401 developments are prepared for construction, with a total of approximately 454,000 units. According to a MoC survey, there will be a demand for about 2.4 million units of social housing for low-income workers in industrial zones between 2021 and 2030. The completed pipeline supply will only meet 20 to 30 per cent of total demand.

Social housing market glacier melting As a number of new laws and social housing loan packages are implemented towards the end of the second quarter, the real estate market in Vietnam is hoping for a rebound.

Attraction some way off for social housing The lack of affordable social housing has raised whether foreign developers should be allowed to invest in this segment in Vietnam.

MoC makes suggestions on social housing The Ministry of Construction has suggested removing a condition which states that those who want to move into social housing must have registered for permanent or temporary residence for one year or longer in the relevant area.