Developers of workers’ accommodation to get incentives

A proposed new decree will offer incentives to people building housing for workers, Minister of Construction Trinh Dinh Dung has said.

Minister Trinh Dinh Dung visits a worker family in a lodging house in Linh Trung Ward in Thu Duc District (Photo: SGGP)

He made the statement while taking a delegation of officials to workers’ dormitories in Ho Chi Minh City on May 7.

The group visited a workers’ dormitory at the Tan Thuan Processing Zone in District 7 built by the South Saigon Development Corporation (Sadeco). Its 520 rooms accommodate around 1,700 workers, and the complex has lots of facilities.

Each worker pays VND300,000 (US$15) per month including electricity and water charges.
Sadeco executives sought more tax breaks.

Dung told them that Decree 188 on development of social housing would offer loans at 5 percent interest, personal income tax exemption, and assistance with design and planning to encourage people to build housing for workers.

But to get these benefits, investors have to build standard accommodation as regulated, he said.

The team also visited two housing blocks in Linh Trung Ward, Thu Duc District, with 27 and 24 rooms rented out to workers.

The minister appreciated the two landlords for providing decent accommodation for a worker at a reasonable VND500,000 rent per month.

He admitted that many workers in industrial parks and export processing zones have to make do with substandard accommodation and lack of facilities.

The landlords told him that if they can get low-interest loans and support from the government, they would enlarge their buildings to provide more rooms to workers.
Nguyen Tuyet Anh, one of them, said local authorities should temporarily register workers’ children so that they can go to school.

Dung said closer coordination is needed between the government and investors to build more housing for workers.

By Hanh Nhung – Translated by Uyen Phuong

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