HCMC lacks capital for housing projects

Major housing projects in Ho Chi Minh City are currently on hold due to serious shortage of capital investment, stated Nguyen Tan Ben, director of the City’s Department of Construction.

New apartment blocks in District 8, HCMC (Photo: SGGP)

Construction began on five dormitory projects two years ago, to accommodate 67,000 students, but now work is at a stand still.

The five dormitories were to be funded with VND3.8 trillion (US$180 million) from Government bonds. However, only VND1.2 trillion ($57 million) was released, bringing the construction to a halt.

HCMC leaders have now decided to withdraw VND500 billion ($24 million) from the city budget, to enable the dormitories to be completed.

The present tightened monetary policies have also caused difficulties for investors in accessing loans to complete accommodation facilities for workers in the industrial and export processing zones.

By Hanh Nhung – Translated by Kim Chung

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